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This paper aims to study whether the adoption of an entry mode that fits the social trust level contributes to the improvement of foreign subsidiary performance.

The authors used the Probit model, linear regression, strategic fit approach and instrumental variable regression. The sample was made up of 11,095 observations of Chinese multinational enterprises' foreign subsidiaries in 54 countries from 2005 to 2020.

The results suggest that a host country with a high level of social trust results in fewer difficulties for enterprises in gaining legitimacy, thus foreign subsidiaries are more likely to select the wholly owned entry mode. The results also show that the effect is contingent on the formal institutions of host countries. The results of the mechanism test suggest that social trust influences subsidiaries' entry mode choice by reducing information asymmetry, costs and uncertainty risks. This study further finds that selecting a fit entry mode based on social trust level substantially increases foreign subsidiary performance and this effect is more significant when multinational enterprises (MNEs) are state-owned enterprises (SOEs).

The main limitation of this paper is its only focus on foreign subsidiaries of Chinese MNEs, which may limit the generalizability of research findings.

This paper responds to the call for conducting more research on informal institutions. Findings highlight the critical role of informal institutions in helping foreign subsidiaries in gaining legitimacy in host countries and the essentialness of selecting a fit entry mode based on the informal institutions of host countries for the development of foreign subsidiaries.

Despite the importance of foreign market entry mode (FMEM) decisions for the internationalisation of small and medium-sized enterprises (SMEs), there is insufficient understanding of the knowledge types and sources necessary for such decisions. This study addresses this issue by investigating the knowledge configurations that underpin FMEM initial choices and subsequent changes in SMEs.

This study adopted an interpretive approach and analysed empirical data from 37 in-depth interviews with decision-makers in internationalised SMEs from the United Kingdom.

The findings reveal that different knowledge configurations drive FMEM decisions in SMEs. Based on the analysis conducted for this study, initial FMEM choices draw on prior experiential knowledge combined with knowledge from desk research and knowledge acquired from peers, competitors and international partners. However, unlike many previous contributions, this research shows that foreign market experiential knowledge does not influence mode changes. Within-mode changes rely mainly on mode-specific knowledge and on knowledge about exploiting the benefits of the internet and digital platform ecosystems. Conversely, between-mode changes draw on diverse knowledge that is frequently created in interaction with international stakeholders or acquired externally.

This study contributes to the SME internationalisation literature by highlighting the knowledge configurations that inform not only initial choices but also between- and within-mode changes. Moreover, it reveals the importance of distinct types of digital technology-based knowledge for facilitating mode changes. It also adds to the knowledge-based perspective by underscoring that dynamic and heterogenous knowledge configurations, often created in interaction with international stakeholders, promote firm internationalisation.

China’s foreign aid efforts in Africa remain contentious. Chinese foreign aid tends to be different from “traditional” development assistance in that it frequently involves firms as the implementing agents of projects. Firms bring unique resources to public–private partnerships (PPPs) formed with government agencies, but their possible self-interested nature also gives rise to concerns over their development impact. Yet, on a larger scale, little is known about the characteristics of Chinese PPPs in foreign aid. Using project-level data available for 1,308 Chinese aid projects in 50 countries across Africa, the author characterizes the projects undertaken by firms and government agencies in a PPP and contrasts them to those executed by Chinese government agencies without firm involvement. This exploratory data analysis suggests that important differences apply, as Chinese PPPs tend to target different sustainable development goals (SDGs), work on the basis of distinct aid conditions, and implement projects that tend to be larger than those that are solely run by government agencies. Such observations raise important questions of an ethical, theoretical, and international nature, and warrant further research. The author develops a research agenda that aims at issues particularly important for business ethics scholars, organization theorists, and international business scholarship.

This study aims to investigate the role of interpersonal influence on consumer purchase decisions regarding foreign products, specifically by exploring consumers’ social reaction styles (acquisitive and protective) when confronted with normative pressures and their subsequent impact on consumers’ purchase behavior in the context of situational animosity.

Three studies were conducted in China to empirically examine the proposed research model. The US–China Chip War of 2022 was used as the research context for situational animosity, while the Japan–China relationship representing a stable animosity condition was used for contrast.

This study establishes the mediating role of perceived normative pressure in linking animosity attitudes to purchase avoidance in situational animosity. It also validates that consumers’ social reaction styles (acquisitive and protective) help predict distinct behavioral outcomes, holding significant implications for advancing research in the field of product and brand consumption.

This research provides a novel perspective by exploring consumers’ social reaction styles when dealing with normative pressure in situational animosity. The distinction between acquisitive and protective reaction styles adds depth and originality to the study. Moreover, this study examines consumer behavior in two distinct consumption contexts: switching intentions to local products and purchase intentions for products from offending countries in hidden consumption situations. This dual perspective offers a comprehensive exploration of consumers’ purchase behavior under normative pressure, contributing to the novelty of this research.

In this research, we designed and implemented a unique vignette experiment to study the effect of managers' perceptions of institutional distance on foreign location choice, as well as the moderating effect of managerial international experience and preferred entry mode on this relationship.

We employ an experimental vignette methodology (EVM) approach applied in the context of Chinese managers to test the causal relationships depicted in our hypotheses. In this way, we measure the decision-makers' perceptions ex ante, i.e. in conjunction with and prior to a decision about a foreign location choice.

Our findings show that managers' ex-ante perceptions of institutional distance negatively affect decisions on foreign location choice. Also, we find that managerial international experience and preference for high commitment entry modes mitigate the negative effect of managers' perceptions of institutional distance on foreign location choice.

This research study adds to our understanding of the effect of managers' perceptions of institutional distance and managerial contingencies on foreign location decisions. Further, it advances novel experimental design in international business research in general and on foreign location choice in particular.

This study aims to address two research questions: Do the decision modes on foreign partner selection post-entry vary between different types of family small and medium enterprises (SMEs)? How does socio-emotional wealth (SEW) affect (if so) decision modes in international partnership post-entry decisions (e.g. engagements with or changes of international partners) in different types of family SMEs?

This study employs a qualitative case study design of different types of family SMEs, namely, one family firm with a high level of family involvement in the internationalisation activities of the firm (FMH) and one family firm with a low level of family involvement in the internationalisation activities of the firm (FML).

The case study evidence indicates different decision modes on foreign partner selection post-entry in the investigated family SMEs: a bounded rationality mode in the FMH firm and a real option reasoning in the FML firm. The bounded rationality mode was linked with the appearance of SEW goals in the FMH firm, which in turn led to foreign partner engagements resulting also in a low speed of internationalisation growth. In contrast, the real option reasoning mode in the FML firm was not linked with SEW goals, and it led to international partner changes, resulting in a speedier internationalisation growth.

This study unearths the case that different types of family SMEs can employ different decision modes in their international partnerships, whereas SEW tendencies do not always appear.

Information transparency is an important factor in enhancing trust and promoting interfirm cooperation. By combining transaction cost theory and institutional theory, this study aims to examines whether host-country firms’ information transparency prompt multinational enterprises’ (MNEs) to choose the joint venture entry mode for outward foreign direct investment (OFDI).

Using Heckman two-stage estimation method, this study examines Chinese listed manufacturing firms for the period 2014–2019.

The findings indicate that the higher the information transparency of host-country firms, the higher the possibility of MNEs choosing the joint venture entry mode for OFDI. This study further finds that the positive relationship between host country firms’ information transparency and the possibility of choosing the joint venture entry mode is enhanced by institutional distance, but weakened by MNEs’ host-country experience.

How to choose the appropriate entry mode of OFDI in the internationalization strategy is an important issue for MNEs to consider. As the postpandemic world is characterized by increased global risks, decoupling of economies, disruption of global value chains and the retreat of globalization (Contractor and Cantwell, 2022), how to further strengthen cooperation, reduce the cost and risk of MNEs and truly realize common construction and sharing is one of the hot issues in both practice and research.

Why is it that, despite repeated claims that digital-content firms and internet-based businesses can internationalize everywhere almost instantly, many seem unable to profitably expand outside their home markets? Why have emerging market firms (EMNEs) caught up with established developed-country multinationals (DMNEs) so much faster than expected? In this chapter, the author argues that the clue to these two puzzles lies in the realization that, contrary to the dominant view in the international business (IB) literature that focuses only on the intangibles exploited by DMNEs and assumes that these firms are free to unilaterally decide on their mode of entry and operation, doing business in a foreign country is only possible if intangibles are bundled with complementary local resources, usually held by local firms. Taking into account these complementary local resources and their owners makes it clear that DMNEs are not always free to choose their entry mode but must enlist the cooperation of local resource owners. The need of digital-content and internet-based firms for local complementary resources also explains why they sometimes experience problems when expanding abroad. Lastly, control of complementary local resources provides EMNEs with a home advantage against DMNEs competing with them in their home market. The author shows how EMNEs can capitalize on this advantage to obtain the intangibles they lack and need. The fact that these advantages are available on efficient global markets, while complementary local resources are not, explains the surprising speed of EMNE catch-up.

In recent decades, emerging market multinational enterprises (EMNEs) have predominantly adopted a big step internationalization strategy to expand their business overseas. This study aims to examine the effect of big step internationalization on the speed of subsequent foreign direct investment (FDI) expansion for EMNEs. The authors also investigate the potential boundary conditions.

The authors use the random effects generalized least squares (GLS) regression following a hierarchical approach to analyze the panel data set conducted by a sample of publicly listed Chinese firms from 2001 to 2012.

The findings indicate that implementing big step internationalization in the initial stages accelerates the speed of subsequent FDI expansion. Notably, the authors find that this effect is more pronounced for firms that opt for acquisitions as the entry mode in their first big step internationalization and possess a board of directors with strong political connections to their home country’s government. In contrast, the board of director’s international experience negatively moderates this effect.

This study provides insights into our scholarly and practical understanding of EMNEs’ big step internationalization and subsequent FDI expansion speed, which offers important implications for firms’ decision-makers and policymakers.

This study extends the internationalization theory, broadens the international business literature on the consequences of big step internationalization and deepens the theoretical and practical understanding of foreign expansion strategies in EMNEs.

This paper systematically reviews and scrutinises the current development of studies concerning digital platform use in firms’ internationalisation. It also provides a research agenda for future work. Despite more than two decades of research, the study of how traditional firms enter foreign markets using digital platforms remains in its infancy. This paper contributes insights into the academic and managerial relevance of this field.

A systematic review of the literature based on content analysis was undertaken, drawing from peer-reviewed journal articles in international business, international marketing, information systems, and electronic commerce. The articles were published between 1999 and 2023, and the review employed a vote-counting method.

This analysis of 61 papers indicates that research on digital platform use in firms’ internationalisation is growing rapidly. However, the field itself is fragmented, and the research findings are inconsistent. This dynamic area reflects a growing trend, is dominated by several theories, relies primarily on survey data, and frequently uses China as a research context.

In acknowledging the vibrancy and managerial importance of this field, the authors offer a comprehensive overview of the existing studies to serve as a repository of knowledge on digital platform use in internationalisation for both academics and practitioners. Based on the aforementioned analysis, this study develops a reconciling framework to address current research gaps and identify future study directions.