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Article
Publication date: 26 April 2024

Shifang Zhao and Shu Yu

In recent decades, emerging market multinational enterprises (EMNEs) have predominantly adopted a big step internationalization strategy to expand their business overseas. This…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 26 February 2024

Xiaoyuan Li

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…

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Originality/value

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.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 13 July 2023

Ying Zhang and Cong Cheng

This study seeks to explore the relationship between performance relative to aspiration and SMEs' internationalization speed, and moderating effects of top management's policy…

Abstract

Purpose

This study seeks to explore the relationship between performance relative to aspiration and SMEs' internationalization speed, and moderating effects of top management's policy knowledge and institutional distance between the above relation.

Design/methodology/approach

This study tests the authors’ hypotheses using data on Chinese manufacturing SMEs over a 5-year period from 2013 to 2017. The authors leverage archival panel data on publicly listed companies on the SME Board, GEM and New OTC Market in the Shanghai and Shenzhen Stock Exchanges. The authors then collected data from the WIND and ZEPHYR databases.

Findings

The results confirm a U-shaped relation between performance relative to aspiration and SMEs' internationalization speed, and show that this relation is steepening by top management's policy knowledge in home country but flattening by institutional distance as environmental dynamics.

Originality/value

The study findings contribute to the international business field by exploring how a firm's risk situation in internationalization can change, thereby influencing SMEs' international expansion.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 5 January 2024

Augusto Bargoni, Alberto Ferraris, Šárka Vilamová and Wan Mohd Hirwani Wan Hussain

The purpose of this paper is to provide an integrative picture of the state of the art of the literature on digitalisation of small and medium-sized enterprises (SMEs) as an…

Abstract

Purpose

The purpose of this paper is to provide an integrative picture of the state of the art of the literature on digitalisation of small and medium-sized enterprises (SMEs) as an enabler for their internationalisation process and as a comprehensive view of the specific domains impacted by digital technologies as well as their repercussions on the international outreach.

Design/methodology/approach

A systematic review which leverages a descriptive analysis of extant literature and an axial coding technique has been conducted to shed light on the current knowledge and to identify primary research areas and future research lines.

Findings

The research indicates that digitalisation impacts the internationalisation of SMEs in three specific domains: (1) internationalisation through the adoption of information and communication technologies (ICT) technologies and e-commerce platforms; (2) international expansion through the digitalisation of value chain activities and (3) international outreach through knowledge acquisition on digital platforms.

Originality/value

The value of this study is threefold. First, the authors attempt to systematically review the literature on SMEs digitalisation and internationalisation and provide a holistic perspective on the intertwining of these two research streams. Second, the authors propose a novel conceptualisation on the dimensions of SMEs digitalisation as enablers to internationalisation. Third, the authors put forward promising future lines of research.

Highlights

 

  1. Digitalisation represents a pivotal strategy that allows companies to build new strategic capabilities and is a propeller for SMEs internationalisation.

  2. Through e-commerce, SMEs could compete at the same level of multinational companies but enduring lower costs of expansion.

  3. Digital platforms allow SMEs to enhance the learning processes about international markets through an immediate access to relevant information.

  4. Digital entrepreneurship has enabled SMEs to develop new configurations of value chain activities, evolving their business model or reaching new markets.

  5. SMEs are changing the “business as usual” paradigm offering digital tools to build modular architectures that are scalable and agile in their evolution ability.

Digitalisation represents a pivotal strategy that allows companies to build new strategic capabilities and is a propeller for SMEs internationalisation.

Through e-commerce, SMEs could compete at the same level of multinational companies but enduring lower costs of expansion.

Digital platforms allow SMEs to enhance the learning processes about international markets through an immediate access to relevant information.

Digital entrepreneurship has enabled SMEs to develop new configurations of value chain activities, evolving their business model or reaching new markets.

SMEs are changing the “business as usual” paradigm offering digital tools to build modular architectures that are scalable and agile in their evolution ability.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 30 June 2023

Zhaochen Li, Zimu Xu and Arun Sukumar

The aim of this research is to explore the impact of digital resilience on firms' international performance. Using internal operation efficiency and innovation as channel…

Abstract

Purpose

The aim of this research is to explore the impact of digital resilience on firms' international performance. Using internal operation efficiency and innovation as channel variables, this paper explores the relationship between digital resilience and international firm performance of Chinese listed firms.

Design/methodology/approach

The research design follows a quantitative approach. Using firm-level panel data from 2007 to 2020, this paper tests the hypotheses between digital resilience and international firm performance through internal efficiency and innovation.

Findings

The results note that digital resilience has a positive effect on internationalization while operation efficiency is a channel through which digital resilience promotes internationalization. Digital resilience also facilitates innovation by improving research and development (R&D) efficiency and matching innovation collaborators.

Originality/value

This paper is one of the first to explore digital resilience in the context of internalization and international firm performance. This paper extends the notion of resource-based view (RBV) to examine the relationship between digital resilience, internal efficiency and innovation on international firm performance.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

Open Access
Article
Publication date: 31 January 2023

Ahmed Nazzal, Maria-Victòria Sánchez-Rebull and Angels Niñerola

This study introduces a comprehensive bibliometric analysis of the foreign direct investment (FDI) literature by multinational corporations (MNCs) focusing on emerging economies…

6961

Abstract

Purpose

This study introduces a comprehensive bibliometric analysis of the foreign direct investment (FDI) literature by multinational corporations (MNCs) focusing on emerging economies to identify the most influential authors, journals and articles in FDI research and reveals the fields' conceptual and intellectual structures. The purpose of this paper is to address these issues.

Design/methodology/approach

The study analyzed 533 articles published between 1974 and 2020 in 226 academic journals indexed in the Web of Science (WoS) and Scopus databases. We used the R language for statistical computing to map author collaboration, co-word and develop a conceptual and intellectual map of the field.

Findings

The results show that, although the FDI literature has many authors, few dominate the field. The International Business Review (IBR) and International Journal of Emerging Markets (IJoEM) are the main sources of the publications. Moreover, bibliometric laws show that our dataset follows the Lotka law of scientific productivity and Bradford law of scattering, identifying the core journals. Finally, FDI by MNCs in emerging economies research is divided into four sub-research themes related to (1) FDI determinants, (2) entry mode, (3) MNCs and FDI performance and (4) the internationalization process.

Originality/value

The current article provides several starting points for practitioners and researchers investigating FDI. It contributes to broadening the vision of the field and offers recommendations for future studies.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 13 March 2023

Yi-An Chen, Shiau-Ling Guo and Kuo-Feng Huang

This study aimed to explore the antecedents of small- and medium-sized enterprises (SMEs) internationalization and to compare the different resources required to enter different…

Abstract

Purpose

This study aimed to explore the antecedents of small- and medium-sized enterprises (SMEs) internationalization and to compare the different resources required to enter different geographical regions. This study adds to the discussion on internationalization from a resource-based view (RBV) and a focus on dynamic capability, especially the linkage with resources such as digital capability, domestic industrial networks and the business-to-business (B2B) model.

Design/methodology/approach

This study used secondary data collected by an SME association in 2020, using a logistic regression model to examine the hypotheses. The respondents were selected according to stratified random sampling.

Findings

Digital capability and the B2B model significantly and positively affect the likelihood of internationalization by SMEs, while domestic industrial networks were negatively correlated with this process. In addition, Taiwanese SMEs with high digital capability tend to expand to North America, Europe, Southeast Asia, Northeast Asia, Oceania and the Middle East. Smaller firms tend to develop in Southeast Asia, whereas larger firms opt to establish business in Oceania.

Research limitations/implications

A research limitation is the generalizability of the sample. Findings could be enhanced if future studies include more industries and draw comparisons among different industries or countries. Future studies could explore digital entrepreneurship from a global perspective.

Practical implications

Managers need to emphasize better the development of digital capabilities and skills for SMEs. With limited financial resources and workforce, SMEs can strengthen the competence in international markets by adopting a suitable business model. When SMEs join an association to expand SMEs foreign networks, the study suggests that SMEs carefully evaluate the characteristics of each industrial association first, given that some associations are domestic-oriented. As for public policymakers, a project grant can be used to provide digital capability training for SME employees and owners or promote building a B2B model when internationalizing.

Originality/value

The authors' findings fill the research gaps in RBVs of internationalization, especially in linking resources such as digital capability, domestic industrial networks and the B2B model. The outcomes of this research serve as a reference not only to policymakers for improving the current SME ecosystem, but also to business practitioners positioning themselves in this system.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 1 May 2024

Pedro Baena-Luna, Juan A. Martínez-Román, José E. Romero-García and Francisco Liñán

This paper aims to propose and test a corporate entrepreneurship strategy (CES) model in small- and medium-sized enterprises (SMEs) with international activity located in…

Abstract

Purpose

This paper aims to propose and test a corporate entrepreneurship strategy (CES) model in small- and medium-sized enterprises (SMEs) with international activity located in Andalusia (Spain) – a peripheral region with high levels of inequality in the European Union (EU).

Design/methodology/approach

A quantitative analysis has been carried out with data from 101 SMEs to contrast and analyze the proposed CES model. The sample data were obtained through questionnaire-guided interviews with chief executive officers. Data processing has been done using partial least squares-path modeling, a variance-based technique for structural equation modeling.

Findings

The results of this study show the positive effect of environmental conditions on the development of CES actions in Andalusian SMEs (Spain) and the positive influence of CES on the results of SMEs’ international activity. In turn, environmental conditions do not directly affect the international activity.

Originality/value

Although previous works address the relationship between corporate entrepreneurship (CE) and international enterprise activity, to the best of the authors’ knowledge, this work is original in testing a CES model (including CE and the entrepreneurial strategic vision) in SMEs in a region that has one of the lowest levels of development in the EU. The results have important implications for SMEs and policymakers and could be extrapolated to other emerging economies.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 29 January 2024

Hanyang Ma, Jingjie Zou and Hailiang Zou

This study aims to explore the internationalization of multinational enterprises (MNEs) from China and aims to examine the relationship between Chinese MNEs’ duration of…

Abstract

Purpose

This study aims to explore the internationalization of multinational enterprises (MNEs) from China and aims to examine the relationship between Chinese MNEs’ duration of internationalization and export intensity, and the contingent roles of the home country government.

Design/methodology/approach

By extending the springboard theory with institutional and cost-benefit analyses, the authors elaborate a two-phase framework of internationalization to explain how Chinese MNEs develop their international business under the influences of the home country government. Furthermore, the authors apply the Heckman two-stage method based on a panel data set of 19,994 firm-year observations of Chinese listed firms in 2008–2018 to test the hypotheses.

Findings

The research findings demonstrate an inverted U-shape relationship between the duration of internationalization and the export intensity of MNEs from China. The export intensity of MNEs from China increases during the initial phase of internationalization, and decreases during the subsequent. A further study reveals that the inverted U-shape of Chinese non-SOEs is steeper than that of SOEs, and this moderating effect is more salient after the Belt and Road Initiative. These results highlight the influence of the home government through state ownership and policies on the inverted U-shaped relationship.

Originality/value

This study helps to refine the understanding of Chinese MNEs’ global expansion by addressing time as an explicit dimension and revealing the mechanism of state ownership and the home country governmental policy in the dynamic internationalization process.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 7 November 2023

Eduardo Terán-Yépez

This perspective article aims to provide an overview of the interplay between international entrepreneurship and the dynamics of family businesses, with a particular focus on…

Abstract

Purpose

This perspective article aims to provide an overview of the interplay between international entrepreneurship and the dynamics of family businesses, with a particular focus on post-entry decisions.

Design/methodology/approach

This paper is based on a short literature review.

Findings

The convergence of international entrepreneurship and family businesses presents a compelling area of study, where post-entry decisions serve as a critical yet underexplored facet. Post-entry decisions in international entrepreneurship for family-owned businesses encompass responses to international crises and shocks and strategies for de-internationalization, restructuring or market exit.

Originality/value

This article synthesizes existing research, highlighting the importance of studying post-entry decisions in the realm of international family businesses. It encourages scholars and practitioners to delve into the unique challenges faced by these firms, ultimately enriching the understanding of international entrepreneurship within the family business context and providing valuable insights for both theory and practice.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

1 – 10 of 237