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Through the subject of business network dynamics, this study aims to examine how business network relationships impact company entry market and development within fast growing economies as China. The paper looks at business network relationships in a fast-growing economy and provides an understanding of the relational perspectives in internationalisation of three luxury fashion companies and their entry models affected by the China context-related variables.

The methodology is following a qualitative approach, based on multiple case-studies research, proposing three cases of companies entering the Chinese market in the luxury and fashion industry.

The research analyses the local business network paths and how they affect the entry strategy through the socio-cultural and political players. The paper adds knowledge to studies in market entry and business networks, in the fast-growing economies area, with its new norms and values.

This study tries to analyse how business networks and related relationships “with Chinese characteristics” affect the market entry strategy in the internationalisation path from the perspective of the luxury fashion industry sector. In so doing it tries to provide an original further development of business network models within the new Chinese context.

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.

The purpose of this study is to examine different paths to overcoming the liability of foreignness. Based on the eclectic paradigm, the authors construct a theoretical framework comprising enterprise nature, location choice, entry mode and internationalization strategy.

The paper uses fuzzy-set qualitative comparative analysis (fsQCA) method to test the framework with data covering 120 multinational Chinese subsidiaries in 34 host in 2019.

The results show that liability of foreignness (LOF) is multiple concurrency, equifinality and asymmetry. When investing in Belt and Road (B&R) countries, non-SEOs can weaken LOF by applying the greenfield mode and resource-seeking strategy, other MNEs can implement a market- or resource-seeking strategy via cross-border M&A to reduce LOF. But when investing in non-B&R countries with a strategic asset-seeking strategy, the LOF is increased. The B&R initiative can reduce the LOF effectively.

The authors construct a general framework to explain the paths of overcoming LOF by bridging the OLI with LOF and introduce fsQCA method into the field of LOF to make up for the shortcoming of existing test method by explaining the influence of more than three factors on LOF.

Specific teaching and learning objectives include to identify factors influencing market expansion decisions and recommend appropriate entry modes, understand factors in the international business environment that contribute to success or failure of international businesses in developing countries, evaluate strategies enabling international businesses to sustain market presence in developing countries and overcome local competition, analyze the concept of local responsiveness in international business operations and suggest strategies for internationalizing domestic companies from developing countries.

The McDonald’s case examines the challenges associated with market expansion by global brands. The case occurs during the early-globalization era in the 1990s. Barbados, a developing country, is the site for potential expansion. Prospective investors, the Winters, are desirous of establishing a McDonald’s in Barbados. They need to thoroughly analyze the previous experience of McDonald’s against the host country’s current international business environment, e.g. political, economic, cultural and competitive environment. This case analysis provides a framework for understanding the multifaceted reasons behind McDonald’s exit from Barbados, considering the complex interplay of political, economic, sociocultural, technological and legal factors in the international business environment. The case equips the instructor and students to explore the risks of international expansion, particularly in developing country markets. The case study on McDonald’s failure in Barbados highlights the need to thoroughly examine one’s market entry strategy and available information on the host market and be more locally responsive regarding tastes and preferences. The case study also presents essential lessons for firms and planners from developing countries. Local firms innovated and enhanced their operations in response to the threat from the entry of the global fast-food giant. Yet, they did not seek to internationalize once McDonald’s exited the Barbadian market. The case study, therefore, considers strategies firms from developing countries could utilize to penetrate markets from developed countries.

At the undergraduate level, the McDonald’s Barbados case can be used in international business classes to highlight risks in the international business environment and the need for a carefully planned and executed market entry strategy.

Teaching notes are available for educators only.

CSS5: International Business.

Foreign subsidiaries of multinational enterprises (MNEs) operate in complex and competitive international environments, implement market and non-market strategies, manage resources and value-added activities and contribute to the overall performance of their parent firms. Thus, the research question on the determinants of MNE foreign subsidiaries’ performance is of interest to managers and academic researchers. The empirical literature has flourished over the recent decades; however, the domains are fragmented, and the findings are inclusive. The purpose of this study is to systematically review, analyse and synthesize the empirical articles in this area, identify research gaps and suggest a future research agenda.

This study uses the qualitative content analysis method in reviewing and analysing 150 articles published in 24 scholarly journals during the period 2000–2023.

The literature uses a variety of theoretical perspectives to examine the key determinants of subsidiary performance which can be grouped into six major domains, namely, home- and host country-level factors; distance between home and host countries; the characteristics of parent firms and of subsidiaries; and governance mechanisms (the establishment modes and ownership strategy, subsidiary autonomy and the use of home country expatriates for transferring knowledge from the headquarters and controlling foreign subsidiaries). A range of objective and subjective indicators are used to measure subsidiary performance. Yet, the research shows a lack of broader integration of theories and presents inconsistent theoretical predictions, inconclusive empirical findings and estimation bias, which hinder our understanding of how the determinants independently and jointly shape the performance of foreign subsidiaries.

This study provides a comprehensive, nuanced and systematic review that synthesizes and clarifies the determinants of subsidiary performance, offers deeper insights from both theoretical, methodological and empirical aspects and proposes some promising avenues for future research directions.

The case has been developed by using secondary sources of information.

Tesla’s much-awaited foray into the burgeoning Indian electric vehicle (EV) marketplace had hit the “high import tariff” roadblock. Discussions ensued and finally, Elon Musk, the CEO of Tesla and the Indian Government found common ground. The moot point of Tesla’s entry mode was resolved. Musk announced Tesla’s plan to set up an EV supply chain and manufacturing facility in the host country. This case discusses factors affecting location decision, market entry modes and international corporate-level strategies. Tata Motors sold affordable cars and was miles ahead in the EV race in India. Musk had to align Tesla’s India strategy with the company’s global strategy to woo the price-sensitive Indian consumers. What were the options available to him? This case examines different business-level strategic options that could help Tesla drive in the fast lane in India.

The case can be used in international strategy course at graduate level. It can also be used in a session on international marketing in marketing management course.

The paper delves into the international expansion of luxury SMEs to investigate their internationalization pathways, namely how the internationalization process unfolds in terms of timing of entry into foreign markets, the geographic scope of operations and the scale. The paper examines also the determinants of the internationalization pathways as a set of factors that contribute to developing an asset of foreignness.

The paper adopts a multiple case study approach and reports findings from four cases of Italian SMEs operating in the luxury fashion industry.

SMEs’ specific characteristics at the firm and entrepreneurial levels (i.e. craftsmanship, quality, product creativity, entrepreneurial mindset), country of origin attributes (e.g. Italy’s positive image) and the inherently global nature of the luxury industry, can turn foreignness into an asset of foreignness that allows luxury fashion SMEs to pursue internationalization pathways of born globals.

The paper highlights that the global luxury market is not the exclusive domain of MNEs and sheds light on luxury SMEs, overlooked by extant literature. The paper also contributes to understanding early internationalization by highlighting a potential link between internationalization pathways and foreignness and discussed the asset of foreignness by extending it to SMEs.

This study aims to examine the international market selection process of entrepreneurs operating internationally.

Four small and medium-sized comparative and rich-information case studies were purposefully selected from among Australian and Arabian firms. Data were collected via in-depth personal interviews, follow-up interviews and questionnaire instrument.

The results revealed that entrepreneurs used a four-stage systematic decision-making process to attain profitable foreign market choices. The decision process was influenced by cognitive boundaries as entrepreneurs relied on the availability experiential, anchoring and adjustment heuristic.

The research’s findings and the proposed decision model will, significantly, assist entrepreneurs, willing to expand internationally, in enhancing their decision-making to attain profitable foreign market choices. Further, it provides benefits to foreign investment policymakers in host countries by assisting them to attract more inward foreign direct investments, and, accordingly, enhance the economic and social development movement in their countries.

This study provides a significant theoretical contribution to the literature on the internationalization process of entrepreneurs and small- and medium-sized enterprises through developing a decision model for selecting and entering foreign markets by entrepreneurs in a cross-country context. Further, the study provides significant methodological contributions with regard to the effectiveness of the qualitative case study method in capturing elements of the foreign market selection process.

Drawing on the time compression diseconomies perspective and business network theory, this study examines how the international expansion of a business group’s pace, scope and rhythm affects its performance.

Panel data (1999–2013) from the top 100 Taiwanese business groups investing in globalization were collected.

The results show that international pace and rhythm have an inverse U-shaped relationship with business group performance, while the relationship between international scope and business group performance is U-shaped. This study highlights that international expansion is multidimensional and nonlinear and that the factors that shape nonlinear relationships between international processes and performance are different. Furthermore, family group involvement positively moderates the link between international scope and performance and negatively affects the relationship between international pace and performance. However, no significant effect is observed between rhythm and performance. High family business group involvement mitigates the impact of outsiders’ liability and managerial costs; moreover, it enhances the positive effects of location-specific advantages and business network resources.

This study combined the time compression diseconomies perspective and business network theory to explain why and how internationalization may not always lead to good performance by examining the effects of different international expansion processes and the interactive effect of family group involvement.

The foreign direct investment (FDI) motivations of emerging market multinational enterprises (EMNEs) are mainly twofold: acquisition of strategic assets in foreign markets, and foreign market penetration. While prior studies have delivered valuable insights, findings regarding the performance of those two types of FDI remain somewhat inconsistent or inconclusive. This study aims to develop complementary perspectives that can motivate scholars to explore the internal mechanisms of achieving goals for these two FDI types by providing a review of prior literature on EMNEs’ knowledge- and market-seeking FDI.

Indexed to the EBSCO database and Google Scholar from 2000 to 2020, 73 articles from 13 journals were selected and reviewed to identify the main research future research agendas.

Our findings show that the purpose of EMNEs’ FDI can be divided into value creation and value capturing, with the former pursuing knowledge-seeking and the latter pursuing market-seeking, according to our study, which draws on insights from innovation-focused literature.

International business (IB) scholars have extensively studied both knowledge-seeking and market-seeking outward FDI of EMNEs for decades. Our study contributes to the literature by providing the potential for integrating IB and innovation studies to extend the scope of EMNEs studies.