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Today, newly founded businesses are inevitably driven to start in a digital form from day 1. Moreover, most existing businesses conceive digitalization as an important part of their strategic orientation by developing and improving their digital assets and digitalizing their processes. By taking account of this development, this chapter investigates how entrepreneurial orientation (EO) affects a small firm’s proclivity to both digitization and internationalization and their performance that comes from it. Internationalization has been a key topic for many small- and medium-sized companies (SMEs) over the past decades. As digitization is currently taking over the helm from internationalization as the most pressing topic affecting business, we carried out research among SMEs to understand the interplay of these factors influencing business performance. The focus of the research was on the precursory factors inducing firm performance as well as on their interrelationships. Using a sample of 357 SMEs, EO is found to be significantly closely associated with an SME’s degree of digitization as well as with its overall performance. In contrast, EO does not affect the SME’s level of internationalization. This result is surprising considering that proactive and risk-taking firms tend to be more inclined to enter foreign and distant markets.

This paper aims to test the internationalization–performance relationship based on data of Chinese firms and the impact of firm size on the internationalization–performance relationship.

This paper uses overseas subsidiaries as a percentage of total subsidiaries to measure the degree of internationalization. As the overseas subsidiaries and total subsidiaries data of Chinese A-share listed firms are not available in any existing databases, the author hand-collected information on subsidiaries of Chinese A-share listed manufacturing firms from their annual financial reports during 2001-2014. The basic accounting and market information is collected from the China Stock Market and Accounting Research Database. This paper finally gets 535 manufacturing firms.

The empirical results suggest that the internationalization–performance relationship is W-shaped in overall samples, but varies with firm size. Specifically, the internationalization–performance relationship is W-shaped in small firms and U-shaped in large firms.

Future studies based on unlisted Chinese firms or other measurement of internationalization may provide further understanding of the internationalization–performance relationship.

Policymakers should help small firms prepare a long-term internationalization strategy, giving more support for small firms in the first and third phases of internationalization and helping them to reach the second and fourth phases. Policymakers should also pay more attention to limit the aggressive internationalization behavior of large firms.

This study provides new evidence for the internationalization–performance relationship by using the unique longitude sample from China and the unique measurement of internationalization. We also highlight the importance of firm characteristics in the examination of internationalization–performance relationship, which provides a potential explanation for previous mixed evidence.

The purpose of this paper is to examine the effect of the chosen specific internationalization pathway on the relationship between internationalization and firm performance.

This paper analyses the internationalization pathway among small- and medium-sized enterprises which internationalize through exporting and are more limited in terms of the resources they can leverage across markets.

Empirical evidence obtained from a sample of wineries in La Rioja shows that the internationalization – export performance relationship is characterized by a U-shaped curve for firms with a gradual internationalization pathway, and an S-shaped curve for firms with an accelerated internationalization pathway.

This empirical study on the impact of export intensity on performance has acknowledged the importance of costs caused by the liability of foreignness and the transaction and coordination costs involved in each market expansion process. However, it has not examined the effect of differences in absorptive and coordination capabilities at the firm level.

The findings about the role of the specific internationalization pathway in driving export intensity and performance appear to be relevant from a public-policy perspective. Local policies aimed at promoting exports have been widely based on the argument that firms can improve their performance through increasing their level of international sales. However, empirical evidence shows that these efforts may not work as well as was thought, unless combined with the right market expansion pathway and the optimal level of exports associated with this international market expansion.

Most studies on the effect of international market expansion on firm performance have not considered the influence of the specific market expansion pathway chosen. In taking this factor into account, this paper contributes to the existing body of work by developing an integrative theoretical framework that explores how the pathway of internationalization impacts on firms’ performance.

Most studies on the effect of international market expansion on firm performance have not considered the influence of the specific market expansion process chosen. In taking this factor into account, this paper contributes to the existing body of work by developing an integrative theoretical framework that explores how the process of international market expansion impacts on firms’ performance.

This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation.

The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study.

Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance.

This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

This paper aims to investigate the moderating roles of negative attainment discrepancy and state ownership in the relationship between internationalization speed and firm innovation.

Panel fixed-effects regressions model was applied to test the influence of internationalization speed on firm innovation using data collected from Chinese listed companies between 2003 and 2017.

The internationalization speed can positively promote firm innovation. Moreover, negative attainment discrepancy enhances the effect of internationalization speed on firm innovation. The effect of negative attainment discrepancy on internationalization speed and firm innovation performance is more positive in state-owned firms than in non-state-owned firms.

A suitable time of internationalization speed to affect firm innovation is obtained.

This paper suggests that decision-makers should set an appropriate aspiration to internationalize firms and increase firm innovation. Moreover, state-owned enterprises should pay attention to negative attainment discrepancies.

The study revealed the boundary conditions of negative attainment discrepancy and state ownership on the relationship between internationalization speed and firm innovation, contributing to the theoretical advancements in internationalization speed.

The purpose of this paper is to investigate the relationship between international expansion and firm performance in an emerging market.

The paper firstly explores the relationship between internationalization and firm performance, then investigates the roles of diversification, and examines how diversification moderates the relationship between internationalization and firm performance. For this purpose, panel data on 318 Chinese listed manufacturing firms during the period 1999‐2008 were utilized. Three groups of samples of high, medium and low levels of diversified manufacturing firms were obtained. Statistical techniques of fixed‐effects panel data model yielded an interesting pattern of findings. On the basis of these results, the paper then discusses the implications for the international expansion of Chinese firms.

At high and low levels of internationalization, internationalization is negatively associated with firm performance, but at medium levels of internationalization, greater internationalization is accompanied by higher performance. Product diversification negatively moderates the relationship between internationalization and performance. As product diversification increases, the relationship between internationalization and performance changes from a horizontal S‐curve in firms with low levels of diversification to a U‐curve in moderately diversified firms and eventually to an equilibrium level in highly diversified firms. The initial stage of the horizontal S‐curve of internationalization and performance declines markedly in Chinese manufacturing firms as a whole, therefore it is by no means easy for Chinese firms to undertake internationalization.

These findings do suggest that managers need to take a long‐term view of internationalization and make a commitment to internationalization.

This is the first paper of its kind to empirically validate the relationship between internationalization, firm performance and diversification in China. It is intended to make a contribution to theoretical research on international business in an emerging market.

The purpose of this study is to investigate the impact of rapid internationalization by emerging-market multinational enterprises (EMNEs) on their innovation performance. It also seeks to identify any potential moderating factors that could influence this relationship.

By analyzing data from listed Chinese MNEs from 2012 to 2022, this study applies a negative binomial regression model to test the research hypotheses.

This study uncovers an inverted U-shaped relationship between the internationalization speed of EMNEs and their innovation performance. It also suggests that strong absorptive, learning and managerial capacities could play positive moderating roles in the effect of internationalization speed on EMNEs’ innovation performance.

This study highlights rapid global expansion, promoting new knowledge acquisition for EMNEs. However, due to time-compression dilemmas with limited EMNE firm-specific advantages, overly accelerated internationalization hinders learning effectiveness. Additionally, this study reveals the critical importance of three firm-specific capacities in EMNEs – absorptive, learning and managerial capacities – in efficiently assimilating newly acquired knowledge from foreign markets and enhancing their innovation performance through rapid internationalization.

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as representatives of a global knowledge-based industry. The empirical analysis used multiple stepwise regressions based on a sample of 149 firms headquartered in Europe and the US. The results indicate that innovation outcomes are positively correlated to the number of foreign subsidiaries (scope internationalization), whereas surprisingly, formal research and development (R&D) does not seem to directly influence innovation. This suggests that the firms benefit from local overseas subsidiaries to create and implement new innovative offerings. The number of foreign subsidiaries has a U-shaped relationship to patent productivity suggesting that firms can gain advantages by locating cost-intensive activities in low-cost countries and critical tasks in advanced market locations. Firm performance has a U-shaped relationship to sales abroad (scale internationalization) and the relationship is further enhanced by a high focus on R&D. This suggests that sales abroad enable scale economies, where R&D improves quality and relevance of products and thereby boosts performance. Finally, to validate the findings we conducted two semi-structured interviews with representative industry experts and gained further insights for an extended interpretation of results.

This study sheds light on the complex relationship between international diversification and firm performance and explores whether future performance expectations seem to drive managerial decisions related to internationalization issues.

We conducted in-depth investigation of five firms. This qualitative approach is allegedly better equipped to uncover the peculiarities of specific internationalization decisions by individual companies and the performance consequences derived from modifications in the degree of international diversification, which might go unnoticed in large-sample statistical analyses.

In line with Hennart’s (2007, 2011) and Verbeke and Brugman’s (2009) theoretical arguments, our findings indicate that no universal relationship should be expected between international diversification and firm performance. Rather, the performance consequences of internationalization-related decisions depend on the particular combinations of a firm’s characteristics and environment contingencies. Given managerial discretion, internationalization decisions would not be randomly made, but rather would be endogenous, and, as such, the relationship between multinationality and performance can only be understood if one takes a contingent approach. Additionally, internationalization decisions seem to be taken within a context of uncertainty regarding the future, which suggests that managers seem to approach internationalization with a long-term perspective and may in fact be “buying real options.”

This study examined only five cases and they all relate to a particular type of firm: all are headquartered in a large emerging market with good domestic growth prospects, and each either is the leader or stands among the largest in its industry in the domestic market. While this relative homogeneity in the selection of the cases minimizes confounding factors, it suggests that findings may be specific to this particular (firm and market) context.

Managers should be aware that decisions that modify the international configuration of a firm might have distinct implications across different firms, given the particular (firm, industry, and environment) contingencies. Therefore, no universal normative orientation should be expected between international diversification and performance.

Although it is often implicitly assumed that managers make (informed) decisions with the objective of improving their firms’ (long-run) performance, there has been little discussion as to whether managers have detailed information about the expected performance implications arising from decisions that change the degree of international diversification of their firm and whether such decisions are driven by expected performance outcomes.

Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia.

This study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships.

This study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization.

This study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.