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21 – 30 of over 36000The main objective of the present chapter is to address empirically the impacts of institutional distance (ID) on the multinationality level of firms from developing countries and…
Abstract
The main objective of the present chapter is to address empirically the impacts of institutional distance (ID) on the multinationality level of firms from developing countries and interpret how the interaction between ID and firm resources affects firms from developing countries. Using data of firms from developing countries, we estimated an empirical cross-section model. The results show that while cultural distance was not found statistically significant, ID, on the other hand, was statistically significant. The higher the distance between home and host country, the higher the multinationality of firms from developing countries. We also found a positive and statistically significant correlation between intangible resource and multinationality, which suggests a tendency toward new pattern in the internationalization of firms from emerging economies.
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Maja Arslanagic-Kalajdzic, Bernardo Balboni, Selma Kadic-Maglajlic and Guido Bortoluzzi
By applying the logic of the resource-based view and process-based internationalisation theory, this study aims to provide a better understanding of the effects of product…
Abstract
Purpose
By applying the logic of the resource-based view and process-based internationalisation theory, this study aims to provide a better understanding of the effects of product innovation capability on the export scope of firms based in developing countries and the role of export experience as a facilitating mechanism.
Design/methodology/approach
Using survey data obtained from three developing countries, two main research hypotheses were empirically tested: a quadratic relationship exists between product innovation capability and export scope and export experience has a moderating effect in this relationship.
Findings
Product innovation capability and export scope have a U-shaped relationship, and export experience exerts a moderating effect. The greater the export experience is, the more the relationship between product innovation and export scope changes, taking on a more inverted U-shaped form.
Practical implications
Firms based in developing countries need to catch-up on innovation capabilities before being able to succeed in international markets. Managers must be aware that initial investments in product innovation could not pay off immediately and that significant additional efforts might be needed to obtain noteworthy results in terms of international expansion.
Originality/value
This study is among the first to focus on the curvilinear relationship between product innovation capability and export scope for firms based in developing countries while accounting for the moderating role of firms’ export experience.
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The purpose of this paper is to critically diagnose the current body of knowledge on de-internationalisation from the perspective of its various antecedents and implications for…
Abstract
Purpose
The purpose of this paper is to critically diagnose the current body of knowledge on de-internationalisation from the perspective of its various antecedents and implications for firms and to identify key research gaps and formulate recommendations for future research.
Design/methodology/approach
Contrary to many reviews of international business literature, this paper adopts a deductive approach by applying theory-driven dimensions of internationalisation to extant research so as to identify key developments and research gaps.
Findings
Among existing studies, attention has been consistently devoted to divestments, reductions of operating modes and foreign market withdrawals, while neglecting other crucial dimensions. Moreover, while financial effects of divestments have been frequently studied, the competitiveness implications of de-internationalisation have widely been neglected.
Research limitations/implications
Further research should consider de-internationalisation phenomena from the viewpoint of several interrelated aspects, as well as shift attention from studying failure to studying optimisation. More attention should be devoted to changes in the organisation of multinational enterprises in line with a changing degree of internationalisation.
Practical implications
The review provides a comprehensive synthesis of extant knowledge on the antecedents, forms and outcomes of de-internationalisation, which is of particular interest for decision-makers responsible for international expansion. This topic has been mostly neglected due to the sensitive character of the underlying decisions. The understanding of the determinants and consequences of de-internationalisation processes can contribute to a more conscious management of foreign operations.
Originality/value
The paper draws on the research paradigm of strategic management research, as well as international business literature, to refine the understanding of de-internationalisation and provide a contribution to this still under-researched area.
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Agnes Asemokha, Ali Ahi, Lasse Torkkeli and Sami Saarenketo
The purpose of this study is to provide a foundational understanding of the internationalization of small- and medium-sized enterprises (SMEs) operating in the context of…
Abstract
Purpose
The purpose of this study is to provide a foundational understanding of the internationalization of small- and medium-sized enterprises (SMEs) operating in the context of renewable energy markets. The focus is on exploring and identifying the managerial-, firm- and environmental-level antecedents to their international expansion, which also furthers the understanding of the distinct SME’s internationalization context within the renewable energy market.
Design/methodology/approach
The study adopts a qualitative multiple case study approach in a Finnish SME context and identifies the antecedents’ relative prominence at the managerial, firm and environmental levels.
Findings
The findings indicate that, although internationalization antecedents of renewable energy SMEs differ owing to market forces such as trends, networks and changing regulatory policies, they share antecedents similar to those of SMEs in other industries.
Research limitations/implications
The main limitation of this study is its single-country home market empirical context. Future studies should expand analysis to different regulatory and regional environments.
Originality/value
To the authors’ knowledge, there are few studies that explore the antecedents of SMEs’ internationalization, especially in the renewable energy market context. Hence, this study contributes to the international business and entrepreneurship literature by illustrating the fundamental managerial-, firm- and environmental-level antecedents to the internationalization of SMEs operating in the renewable energy business. In addition, it highlights the peculiarities of renewable energy SMEs’ internationalization, suggesting that extant research on SMEs’ internationalization has not adequately captured the intricacies present in the internationalization of renewable energy enterprises.
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Juan Gabriel Brida, Oana Madalina Driha, Ana B. Ramón-Rodríguez and Raffaele Scuderi
This paper aims provides an empirical analysis of the development of the internationalisation process in the Spanish hotel industry, which has experienced major changes during the…
Abstract
Purpose
This paper aims provides an empirical analysis of the development of the internationalisation process in the Spanish hotel industry, which has experienced major changes during the past decade. The degree of internationalisation between 2000 and 2010 is used as a proxy variable with the aim of mapping the development of international strategies.
Design/methodology/approach
A longitudinal dataset measuring the internationalisation of Spanish hotel chains is used. Cluster analysis identifies the different behaviour of groups of firms during the analysed period.
Findings
Two different clusters are detected, which can be attributed to different internationalisation strategies over time. Small and medium (SME) hotel companies seem to follow a different path of development than more established multinational companies. Over time, the entire group tends to be more compact, whereas the distance between the clusters is shown to diverge in final years. The groups’ composition suggests that business-networking relationships can be a strategy of particular importance for SMEs pursuing international expansion.
Practical implications
This paper develops a better understanding of the changes of the internationalisation patterns of Spanish hotel chains. Findings could address managers in strategic decisions about how to improve competitive position. In particular, they recommend accounting for size, international experience and business network relationships when expanded abroad.
Originality/value
This paper introduces a new approach based on studying clusters of Spanish hotels according to their internationalisation strategies over the time. Further analysis revealed the role of business network on internationalisation patterns.
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Syed H. Akhter and Marcilio Machado
The purpose of this paper is to explore, using the conceptual frameworks of psychic distance and resource-based view, how Brazilian firms resolve strategic dilemma. Brazilian firms…
Abstract
Purpose
The purpose of this paper is to explore, using the conceptual frameworks of psychic distance and resource-based view, how Brazilian firms resolve strategic dilemma. Brazilian firms face a strategic dilemma about whether to diversify and exploit the rapidly growing markets of China or to protect and expand the established markets of the Greater Mercosur region. The strategic responses of Brazilian business to business firms are examined within the context of internationalization decisions.
Design/methodology/approach
The paper takes a qualitative approach to study the decisions taken by Brazilian firms to deal with the strategic dilemma arising from competitive developments in domestic and regional markets.
Findings
Findings support four hypotheses based on the psychic distance and resource-based view frameworks. However, the fifth hypothesis that trust would be an impediment for establishing business in China for Brazilian firms was not supported. Trust did not appear as a concern for Brazilian businesses.
Practical implications
Two practical implications can be drawn from the findings. First, Brazilian firms have to consider whether they have made themselves vulnerable to attacks from Chinese firms in the Greater Mercosur region by not aggressively entering the Chinese markets. Second, they also have to understand whether their lack of strong presence in the Chinese markets has resulted not only in lost opportunities but also in making it difficult for them to enter the market later.
Originality/value
The paper takes a multi-theoretical approach to provide insights into the international business expansion decisions of firms in a major economy in the Greater Mercosur region. It contributes to the growing literature on firms in emerging economies. By adopting a qualitative approach to study the research questions, the paper provides insights into the behaviors of firms confronting strategic tradeoffs.
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Piotr Trąpczyński and Arkadiusz Kawa
The objective of the paper is to examine the effects of firm capabilities on the use of Internet technologies, as well as the effect of the use of Internet technologies on export…
Abstract
Purpose
The objective of the paper is to examine the effects of firm capabilities on the use of Internet technologies, as well as the effect of the use of Internet technologies on export performance, by drawing from the resource-based view (RBV) and the information systems literature.
Design/methodology/approach
The authors test their propositions by using structural equation modelling (SEM) for 165 Polish exporters from the industrial manufacturing sector.
Findings
The authors’ findings indicate that the use of Internet technologies is positively related to the possessed capabilities of the firms. The use of Internet technologies is in turn positively related to export performance. The authors also find partial evidence for the fact notion that these relationships are moderated by the technology intensity of the sector.
Research limitations/implications
Firms which develop capabilities utilizing Internet technologies are able to enhance both communication and distribution efficiencies which in turn improve the effectiveness of their international operations.
Practical implications
Managers, particularly in sectors with a higher technological intensity, can find these findings useful as the study indicates where they should allocate their efforts to manage various Internet technologies activities for better export performance.
Originality/value
Existing literature has focused predominantly on the application of Internet technologies in the area of e-commerce. The authors go a step further in enhancing the understanding of digitalization in the business models of exporting firms by accounting for a broad variety of Internet-based technologies used by exporters.
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Silvia Massa, Maria Carmela Annosi, Lucia Marchegiani and Antonio Messeni Petruzzelli
This study aims to focus on a key unanswered question about how digitalization and the knowledge processes it enables affect firms’ strategies in the international arena.
Abstract
Purpose
This study aims to focus on a key unanswered question about how digitalization and the knowledge processes it enables affect firms’ strategies in the international arena.
Design/methodology/approach
The authors conduct a systematic literature review of relevant theoretical and empirical studies covering over 20 years of research (from 2000 to 2023) and including 73 journal papers.
Findings
This review allows us to highlight a relationship between firms’ international strategies and the knowledge processes enabled by applying digital technologies. Specifically, the authors discuss the characteristics of patterns of knowledge flows and knowledge processes (their origin, the type of knowledge they carry on and their directionality) as determinants for the emergence of diverse international strategies embraced by single firms or by populations of firms within ecosystems, networks, global value chains or alliances.
Originality/value
Despite digital technologies constituting important antecedents and critical factors for the internationalization process, and international businesses in general, and operating cross borders implies the enactment of highly knowledge-intensive processes, current literature still fails to provide a holistic picture of how firms strategically use what they know and seek out what they do not know in the international environment, using the affordances of digital technologies.
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Banruo Zhang, Zijie Li, Xiaomeng Li and Ziqi Liu
The speed of internationalization is an important research topic in the process of internationalization. This paper aims to answer two questions: first, what is the relationship…
Abstract
Purpose
The speed of internationalization is an important research topic in the process of internationalization. This paper aims to answer two questions: first, what is the relationship between the speed of internationalization of Chinese multinational firms and their performance? Second, how do potential slack and knowledge assets of firms affect this relationship?
Design/methodology/approach
The authors choose Chinese A-share listed manufacturing firms from 2009–2018 as the research sample and use the fixed-effect regression model to test the proposed hypotheses.
Findings
Firstly, there is an inverted U-shaped relationship between the speed of internationalization and firm performance (SI-P). Secondly, the potential slack and knowledge assets of firms moderate the inverted U-shaped relationship. Firms with a higher level of potential slack or knowledge assets have a flatter inverted U-shaped relationship between SI-P.
Originality/value
First, the authors develop and extend Penrose’s theory of firm growth to the research topic of speed of internationalization. Second, this paper incorporates the time dimension into the research on the internationalization process and locates the research context in emerging market firms (EMFs). This is a step forward in clarifying the complex relationship of SI-P. Third, the authors show that the SI-P relationship of EMFs is inverted U-shaped and integrate previous studies, which argue that rapid internationalization positively or negatively affects firm performance. Fourth, starting from inside the firm, the authors provide more contextual factors for better understanding and analysis of the SI-P relationship.
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Maria Alejandra Gonzalez-Perez and Juan Fernando Velez-Ocampo
This paper aims to provide an examination of the ongoing internationalisation processes undertaken by 30 major multinational Colombian-owned firms. It also presents a theoretical…
Abstract
Purpose
This paper aims to provide an examination of the ongoing internationalisation processes undertaken by 30 major multinational Colombian-owned firms. It also presents a theoretical overview and a conceptual framework for the understanding of internationalisation patterns from emerging countries’ multinational enterprises.
Design/methodology/approach
This study is built based both on the results collected from comparative case studies based in the literature and empirical observations of Colombia’s patterns. This study observed the evolution in terms of commitment and investment decisions that 30 major Colombian companies have undergone specially within the past decade.
Findings
Although, it was found that direct exports is the widespread entry mode of Colombian companies to foreign markets, most of the observed firms preferred the consolidation in host markets through Mergers & Acquisitions instead of using Greenfield investments or joint ventures. These observations might suggest similarities with the process of internationalisation of Asian tigers multinationals, which means that they are consolidating their internationalisation process based on their learning, linkages and leverages capabilities. Furthermore, Colombian companies are following the internationalisation pattern of other multilatinas. These companies have first explorer natural markets for them; in other words, they have first attempt to be established in markets that share psychic features, and similar institutional environments, as psychic and physical proximity reduces risk and facilitates foreseen return of investments, and therefore long-term capital accumulation.
Research limitations/implications
This study has some limitations that suggest further research. First, although the observed firms share one main characteristic: being Colombian-owned multinationals, they belong to diverse fields, so this might pose difficultly for the creation of a framework that explains other multinationals drivers to internationalise. A second limitation is that this analysis does not deepen into the internationalisation patterns of multilatinas from countries other than Colombia; this leaves room for further research questions that might deal with the issue of analysing advantages and disadvantages in the internationalisation process of developing country multinational corporations (DCMCs). A third limitation is that this study does not have a longitudinal approach, so this paper does not intent to provide definitive information about cause-and-effect relationship regarding the drivers for DCMCs to internationalize, instead, this study is intended to provide an analysis of the outward foreign direct investment decisions of Colombian multinational firms.
Practical implications
There is limited research based on primary data on accessing the internationalisation process of Colombian multinational companies. This paper offers a research framework and results which could be replicated in other Developing Country Multinational Corporation (DCMNC), and could also be studied longitudinally. This study includes relevant information on the drivers for international expansion, market selection, perceived obstacles, entry modes and consolidation in host markets via acquisitions that could possibly support managerial decisions.
Originality/value
There is limited research based on primary data on accessing the process of internationalisation of Colombian multinational companies. This paper offers research framework and results which could be replicated in other DCMNC, and also could be longitudinally studied. This study includes relevant information on the drivers for international expansion, market selection, perceived obstacles, entry modes and consolidation in host markets via acquisitions that could eventually support managerial decisions.
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