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11 – 20 of over 36000Daniel Gulanowski, Nicolas Papadopoulos and Llynne Plante
This paper aims to critically review and integrate the literature available on Uppsala (incremental) and Born Global (rapid) internationalization models and propose an integrative…
Abstract
Purpose
This paper aims to critically review and integrate the literature available on Uppsala (incremental) and Born Global (rapid) internationalization models and propose an integrative model that applies to both the initial and subsequent stages in internationalization.
Design/methodology/approach
This study draws on a systematic review and analysis of the relevant literature, using 87 articles from 28 journals which deal with the Uppsala and/or Born Global conceptualizations.
Findings
To date, the two views of internationalization have been presented as competing and fundamentally different explanations, as past research focuses mostly on the original 1977 Uppsala model without accounting for its five subsequent extensions (1990-2013) and not considering in sufficient depth the critical role of the knowledge construct in both models.
Research limitations/implications
The study focuses on English-only publications dealing expressly with the Born Global and Uppsala models; while some studies which address the focal theme tangentially may have been missed, the systematic approach to identifying the key studies of interest and the focus on a carefully delineated research domain provides confidence that the main studies relevant to the theme have been captured.
Originality/value
The study highlights the important role of knowledge in the internationalization of firms, and it addresses the current divide between the “incremental” and “rapid” conceptualizations which have impeded the development of theory, by positing six research propositions and an integrative model that accounts for both the incremental and rapid approaches.
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Zichun Yan, Xiying Lu, Yan Chen and Kai Wang
From the perspective of the institution and internationalization speed, the article discusses the internal mechanism of cross-border e-commerce selection mode, as well as the…
Abstract
Purpose
From the perspective of the institution and internationalization speed, the article discusses the internal mechanism of cross-border e-commerce selection mode, as well as the moderating role of social networks as the intangible resource, and expand the theoretical system of corporate internationalization.
Design/methodology/approach
Based on the empirical data of 456 multinational e-commerce companies in five first-tier cities in China from 2016 to 2019, our research explores the selection mode of cross-border e-commerce.
Findings
The results show that (1) the institutional distance of the host country leads to the exit from cross-border e-commerce platforms in the international expansion of enterprises. (2) The difference in internationalization speed online and offline has become a mediated mechanism for the exit of cross-border e-commerce platforms due to the institutional distance of the host country. (3) The diversity and scale of offline social networks can weaken the impact of differences in internationalization speed on the exit from cross-border e-commerce platforms. (4) The resistance of companies expanding to countries with a weak institutional environment is greater than that experienced when expanding to countries with a strong one.
Originality/value
This study shows, for the first time, how to select expansion mode for cross-border e-commerce. And the paper also centers on the research of the impact of “social network”, a kind of intangible resource, on cross-border e-commerce platform adoption.
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Lilach Nachum and Michael Schmid
Purpose – We seek explanation for the existence of international activity in industries whose characteristics provide conflicting rationales for international expansion. In such…
Abstract
Purpose – We seek explanation for the existence of international activity in industries whose characteristics provide conflicting rationales for international expansion. In such industries, the competitive value of some industrial characteristics is magnified by international expansion, whereas the value of others is undermined by these moves. The tension is amplified in the presence of sustainability concerns and the quest for meeting Corporate Social Responsibility (CSR) goals.Design/methodology/approach – The study is based on case studies of the world's largest multinational enterprise (MNE) producers of hydropower plant equipment, which provide representative examples of MNEs in renewable energy industries. We examine the strategic balances that these MNEs strike to deal with the conflicting pressure of international strategy and their performance outcomes.Findings – The insights we generate from the case studies suggest that there might be plural ways to successfully address such tensions, and firms’ histories and competitive advantages shape the choices they make in the face of these conflicts.Implications – Our contribution is of notable merits in the contemporary world whereby the pressure for international expansion extends to industries whose characteristics both favour and inhibit international activity. We outline the distinctive impact that sustainability concerns have in this tension.Originality/value of chapter – Our study serves to deepen the understanding of international activity in the renewable energy sector, a relatively understudied sector, whose significance in the world economy and in international business is growing rapidly. It is novel in extending the tension of international activity to include sustainability and CSR concerns.
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Sung C. Bae, Bell J. C. Park and Xiaohong Wang
We examine whether firms’ multinationality leads to better performance and what the role of R&D investment is in the multinationality performance linkage. Unlike the previous…
Abstract
We examine whether firms’ multinationality leads to better performance and what the role of R&D investment is in the multinationality performance linkage. Unlike the previous studies, we employ both accounting‐ and market‐based measures of firm performance for a large sample of U.S. manufacturing firms. Our results show that the empirical relation between multinationality and performance is not monotonic but varies with the phase of a firm’s multinationality, starting with a negative relation initially, followed by a positive one, and then again a negative one. This horizontal S‐shaped curvilinear relation of multinationality is more pronounced for the market‐based performance measure and is supportive of the three‐stage theory of internationalization. We also find that a firm’s multinationality is related to greater firm performance when the firm possesses R&D investment, and that the effect of R&D increases with the extent of a firm’s multinationality. These results lend strong support for the Internalization theory and the resource‐based view of firms’ international expansion. Our results are robust to different model specifications with an alternative measure of multinationality.
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Wei Sheng, Zhiyong Niu and Xiaoyan Zhou
The purpose of this paper is to explore the determinants of entrepreneurs’ subjective social status perception (SSP) on firm international behaviors based on the upper echelons…
Abstract
Purpose
The purpose of this paper is to explore the determinants of entrepreneurs’ subjective social status perception (SSP) on firm international behaviors based on the upper echelons theory and social class theory.
Design/methodology/approach
To test the hypotheses, the authors studied a large sample of 10,823 small- and medium-sized private Chinese enterprises from 2006 to 2014.
Findings
The results showed that entrepreneurs with higher status perception prefer international activity and firms have higher export intensity and intention. In addition, the social capital of entrepreneurs and institutional environment amplifies the positive relationship between SSP and international behavior.
Originality/value
This paper contributes to research on the upper echelon of management and extends our understanding of how managerial social characteristics influence international strategic decision-making. Besides, it also contributes to the emerging stream of social status research in international expansion studies and expand researchers’ limited understanding of the effects of social status in business settings.
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Andres Velez-Calle, Fernando Sanchez-Henriquez and Farok Contractor
The purpose of this paper is to analyze the relationship between multinationality and firm performance (M-P) in Latin American companies, commonly referred to as multilatinas. The…
Abstract
Purpose
The purpose of this paper is to analyze the relationship between multinationality and firm performance (M-P) in Latin American companies, commonly referred to as multilatinas. The study conceptualizes the depth (intensity) and breadth (geographical scope) of internationalization and examines their effect on financial performance. Although scholars have studied how internationalization in various contexts and industries affects performance, little is known about firms in Latin America.
Design/methodology/approach
The authors conducted an analysis of the effect of the depth and breadth of multilatina internationalization on financial performance by creating a database using information from America Economia, a specialized Chilean magazine that publishes an annual ranking of multilatinas. Additional data came from the Osiris database of Bureau Van Dijk and Compustat. The hypotheses were tested using an autoregressive heteroskedastic model.
Findings
The results show that the extent of the depth and breadth of internationalization affects financial performance. Multilatinas’ depth of internationalization has a curvilinear (U-shaped) impact on performance while breadth has an inverted curvilinear impact on performance.
Research limitations/implications
The theory portion and results expand the literature on firm internationalization and performance by distinguishing between two types of international firm expansion, depth and breadth, and discussing how each contributes to different stages of the three-stage theory of multinationality and performance.
Originality/value
The findings indicate that multilatinas benefit from their regional expansion, but outside Latin America, expansion has a negative effect on financial performance. They also show that firms can implement different types of internationalization strategies in terms of intensity and scope to achieve better performance.
Objetivo
Este artículo analiza la relación entre la multinacionalidad y el desempeño de la empresa (M-P) en compañías latinoamericanas, conocidas como multilatinas. El estudio conceptualiza la profundidad (intensidad) y extensión (alcance geográfico) de la internacionalización, y examina su efecto en el desempeño financiero. Aunque varios investigadores han estudiado cómo la internacionalización en diversos contextos e industrias afecta el rendimiento, poco se sabe con respecto a las empresas en América Latina.
Diseño/metodología/enfoque
Los autores realizaron un análisis del efecto producido por la profundidad y extensión de la internacionalización de la multilatina en el desempeño financiero, mediante la creación de una base de datos con información de América Economía, una revista chilena especializada que publica anualmente un ranking de multilatinas. Datos adicionales provienen de la base de datos Osiris de Bureau Van Dijk y de Compustat. Las hipótesis fueron probadas usando un modelo heterocedástico autoregresivo.
Resultados
Los resultados muestran que el grado de profundidad y extensión de la internacionalización afectan el rendimiento financiero. La profundidad de internacionalización de las multilatinas tiene un efecto curvilíneo (en forma de U) sobre el desempeño financiero, mientras que la extension geográfica tiene un efecto curvilíneo invertido en dicho desempeño.
Limitaciones/implicaciones de la investigación
La sección teórica y los resultados extiende la literatura sobre la internacionalización y el desempeño de las empresas al distinguir entre dos tipos de expansión internacional: profundidad y extensión. También se discute cómo cada uno contribuye a las diferentes etapas de la teoría de la multinacionalidad y desempeño.
Originalidad/Valor
Los resultados indican que las multilatinas se benefician de su expansión regional. Sin embargo, fuera de América Latina, dicha expansión tiene un efecto negativo sobre el desempeño financiero. También se señala que las empresas pueden implementar diferentes tipos de estrategias de internacionalización en términos de intensidad y alcance para lograr un mejor desempeño.
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Keywords
- Internationalization strategies
- Internationalization depth
- Internationalization breadth
- Internationalization scope
- Firm performance
- Latin America
- Multilatinas
- Estrategias de internacionalización
- Profundidad de la internacionalización
- Extensión de la internacionalización
- Alcance de la internacionalización
- Desempeño financiero
- América Latina
- Multilatinas
Deusdedit Augustine Rwehumbiza
The purpose of this paper is to examine the existence of unobserved heterogeneity in the critical drivers of firms’ international expansion. Testing for unobserved heterogeneity…
Abstract
Purpose
The purpose of this paper is to examine the existence of unobserved heterogeneity in the critical drivers of firms’ international expansion. Testing for unobserved heterogeneity assists researchers to come up with precise interpretations and valid conclusions.
Design/methodology/approach
Building on the resource-based view (RBV) and institution-based view, this study applies partial least squares structural equation modelling to empirically examine whether there are significant differences in the success factors among 105 export manufacturers.
Findings
Statistical results reveal significant differences for the relationships between: managers’ entrepreneurial capability (MEC) and export intensity (EI); a moderating effect of institutional support on the relationship between MEC and EI; and firms manufacturing capability and EI. The research results also show that the RBV is salient for all firms expanding from emerging economies. These findings provide evidence that unobserved heterogeneity is likely to lead to misinterpretations of results and false conclusions.
Originality/value
Despite the abundance of natural factor endowments, export performance of firms from emerging economies remains unimpressive. The unobserved heterogeneity revealed across countries calls for business actors at all levels and in different capacities to work on the synergised investment, production, and trade policies in favour of the overlooked human created endowments, particularly capabilities. Capabilities account for the largest part of unobserved heterogeneity and firms’ superior performance.
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Alexander Mohr and Georgios Batsakis
– The purpose of this paper is to study draws on the resource- and knowledge based views (RBV/KBV) of the firm to explain the internationalisation speed of retail firms.
Abstract
Purpose
The purpose of this paper is to study draws on the resource- and knowledge based views (RBV/KBV) of the firm to explain the internationalisation speed of retail firms.
Design/methodology/approach
The authors use a panel data set of 144 international retailers over a ten-year period and employ feasible generalised least squares analysis in order to assess the effect of intangible assets and international experience on internationalisation speed.
Findings
The results support direct effects of intangible assets and international experience, while the latter effect is also moderated by firms’ home-region concentration.
Research limitations/implications
The study investigates the determinants of retailers’ internationalisation speed. While research stresses the positive performance effects of rapid internationalisation, future research should investigate the role of internationalisation speed for the performance of retailers empirically. The findings support the usefulness of adopting a RBV/KBV for explaining internationalisation speed.
Practical implications
The findings imply that firms need to have particular intangible resources before being able to internationalise rapidly. They also show that decision-makers need to be mindful of the effects of international experience in allowing them to expand overseas both within and outside their home region.
Originality/value
There has been very little research into the speed with which firms in general and service sector firms in particular expand their operations internationally. Through a theory-based analysis of a newly created panel data set this study provides novel insights into the factors that lead retail firms to internationalise rapidly.
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Yadong Luo, John Hongxin Zhao and Jianjun Du
This study aims to explain the internationalization speed of e‐commerce companies (ECCs).
Abstract
Purpose
This study aims to explain the internationalization speed of e‐commerce companies (ECCs).
Design/methodology/approach
Based on the archive data of the American ECCs, the study used multiple regression analysis to estimate the influences of a number of micro‐ and macro‐factors.
Findings
The results show that the speedy foreign market entry by ECCs was positively influenced by top management team's international experience, and innovative and marketing capabilities.
Research limitations/implications
The study did not deal with the entry mode of ECCs inviting more future research efforts in this direction. Additionally, as established MNEs have integrated e‐commerce into existing business, future research can be devoted to examine the impact of this integration on the internationalization of firms.
Originality/value
Extant literature has addressed the internationalization of ECCs with a focus on the level of internationalization. This study contributes to the current literature by extending research on globalization of ECCs and incorporating both micro‐ and macro‐level factors affecting the speed of international expansion.
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Juan Velez-Ocampo and Maria Alejandra Gonzalez-Perez
The purpose of this paper is to review the literature on corporate reputation and internationalization to identify key research theories, contexts, characteristics, methodologies…
Abstract
Purpose
The purpose of this paper is to review the literature on corporate reputation and internationalization to identify key research theories, contexts, characteristics, methodologies, applications, limitations and opportunities for future research on the interlinks between these two complex constructs.
Design/methodology/approach
Elements of systematic literature review and bibliometric analysis were used to analyze theories, contexts, characteristics, methodologies and opportunities for future research based on 90 articles published in 50 journals over 27 years.
Findings
The findings suggest that this is a contemporary yet expanding research field explored from a variety of theoretical, methodological and empirical standpoints, which hinders broad conclusions and warrants further research. More specifically, this paper identifies three broad research streams that link international expansion and corporate reputation and suggests avenues for future studies: cross-national institutions, strategic decisions and corporate reputation; international marketing, consumers and brand credibility; and corporate image, international trade and investment flows.
Originality/value
Reputation and internationalization are constructs with multiple applications and interpretations. The way companies build, maintain and extend their reputation and legitimacy, and the drivers, motives and difficulties faced by them when expanding operations internationally have been widely studied separately. This manuscript reviews the nascent and promising linkage between these two elements that have recently drawn the attention of business practitioners and scholars alike.
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