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1 – 10 of over 26000The 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.
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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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Youngsun Park and Brenda Sternquist
The main aim of this paper is to provide research propositions that explain global retailers' international expansion. Global retailers are considered to be…
Abstract
Purpose
The main aim of this paper is to provide research propositions that explain global retailers' international expansion. Global retailers are considered to be concentralized‐standardized retail formats.
Design/methodology/approach
Research literature is used to develop the concepts related to predicting international expansion. Examples from retailers are used to set the stage for proposition development.
Findings
Seven propositions are provided for further examination. These propositions are related to unique retail concept, private brands, unique capability, internalization advantages, pioneering advantages, resource availability, governance resources, and growth experience.
Research limitations/implications
This is a conceptual paper leading to development of propositions for further testing. An empirical analysis is required to determine whether the theoretical connections can be proven.
Originality/value
The major value of the paper is the melding of theory and retail examples to explain the international expansion of a particular type of retailer. Global retailers are centralized and standardized, thereby providing an expansion opportunity in the area of franchising.
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Shantala Samant, Pooja Thakur-Wernz and Donald E. Hatfield
The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related…
Abstract
Purpose
The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related choices on the nature of technological innovations developed by these firms. Specifically, the authors compare two principal perspectives on internationalization – the incremental internationalization process (slow, gradually increasing commitments using greenfield investments to similar host countries) and the springboard perspective (aggressive, rapidly increasing commitments using mergers and acquisitions to advanced host countries).
Design/methodology/approach
Building on key differences between the incremental internationalization and springboard perspectives, the authors argue that differences in the speed and mode of entry, as well as the interaction between the mode of entry and location of internationalization, will lead to differences in the types of technologies (mature versus novel) developed by emerging economy firms. The authors examine the hypotheses using panel data from 1997 to 2013 on emerging economy multinationals (EMNEs) from the Indian bio-pharmaceutical industry.
Findings
The findings suggest that firms internationalizing at higher speeds and using cross-border M&As tend to have innovations in mature technologies. The interesting findings can be explained by the challenges faced by emerging economy firms in experiential learning and the assimilation of external knowledge. In addition, the authors find that internationalization to technologically advanced countries weakens the relationship between cross-border M&As and innovation in mature technologies, suggesting that direct learning from technologically advanced environments may help alleviate the assimilation challenges of cross-border M&As.
Originality/value
The authors advance literature on EMNE internationalization by comparing the impact of their choice of internationalization approaches (incremental internationalization or springboard approach) on their innovation performance. The authors contribute to literature on EMNEs that has focused on the determinants of internationalization by identifying the learning implications of internationalization. The authors contribute to the nascent stream of literature on the level of innovation and catching up by EMNEs by performing a fine-grained analysis of the nature of technology innovation.
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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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The rise of East Asia to most dynamic center of processes of capital accumulation on a world scale is a phenomenon of the 1970s and 1980s. As a first approximation, the extent of…
Abstract
The rise of East Asia to most dynamic center of processes of capital accumulation on a world scale is a phenomenon of the 1970s and 1980s. As a first approximation, the extent of this rise can be gauged from the trends depicted in figure 1. The figure shows the most conspicuous instances of “catching‐up” with the level of per capita income of the “organic core” of the capitalist world‐economy since the Second World War. As defined elsewhere, the organic core consists of all the countries that over the last half‐century or so have consistently occupied the top positions of the ranking of GNPs per capita and, in virtue of that position, have set (individually and collectively) the standards of wealth which all their governments have sought to maintain and all other governments have sought to attain. Broadly speaking, three regions have constituted the organic core since the Second World War: North America, Western Europe and Australasia (Arrighi, 1991: 41–2; Arrighi, 1990).
Muhammad Yazrin Yasin, Muhammad Azmi Bin Mohd Zain and Muhammad Haniff Bin Hassan
This paper discusses the urban management challenges in the Greater Kuala Lumpur area. Before examining Greater Kuala Lumpur's economic and social environment, we will look at the…
Abstract
This paper discusses the urban management challenges in the Greater Kuala Lumpur area. Before examining Greater Kuala Lumpur's economic and social environment, we will look at the factors that make it a competitive and fiscally sound entity. When considering urban development and redevelopment, we consider how proposed and ongoing projects, as well as plans, hierarchical links, and road networks, contributed to the increase. Because there is no urban growth boundary, land use change and rural encroachment, as well as environmental degradation and the impact of national economic projects on urban expansion, are both rapid and linear in the analysis. This paper also considers how to manage linear development that results in the creation of new suburbs. Finally, we propose strategies for achieving sustainable urban expansion and management by balancing the financial and governance capacities of Greater Kuala Lumpur local governments.
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Francisco J. Mas, Juan L. Nicolau and Felipe Ruiz
The purpose of this study is to examine the impact on firm performance of foreign concentration vs diversification strategies, as well as the moderating role played by market…
Abstract
Purpose
The purpose of this study is to examine the impact on firm performance of foreign concentration vs diversification strategies, as well as the moderating role played by market, product and firm characteristics.
Design/methodology/approach
Moderated regression analysis is used.
Findings
Distribution and cultural distance (CU) moderate the relationship between foreign concentration‐diversification and stock market performance; while the non‐repetitive character of product purchase moderates the relationship at an accounting performance level.
Research limitations/implications
First, the lack of information prevented us from examining other groups of determining factors. Second, the possible existence of bias in the results due to the selection of stock market quoted firms.
Practical implications
Managers must realise that CU, distribution channel, and the product factor of non‐repeat purchase, play an important role in the choice of a concentration vs diversification strategy when explaining business results. Government authorities should develop training programmes for firms located in middle‐income countries in order to detect the CU with target markets, as well as the development of effective distribution channels and of product strategy in these markets.
Originality/value
The findings of this study and the implications proposed show the relevance of this topic. The paper focuses on a middle‐income country (Spain) and uses two measurements of firm performance: an accounting rate and a market measure based on the event‐study (excess returns on the stock market generated by the announcement of a foreign expansion).
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Svante Andersson and Felicitas Evangelista
The purpose of this research is to identify and analyse the common characteristics and behaviour of entrepreneurs that affect the establishment of Born Global firms. The…
Abstract
Purpose
The purpose of this research is to identify and analyse the common characteristics and behaviour of entrepreneurs that affect the establishment of Born Global firms. The differences between the Australian and Swedish contexts will be scrutinized.
Design/methodology/approach
This study was designed to be qualitative in nature so that rich insights can be obtained directly from the entrepreneurs themselves. The sample consists of three Born Global firms each from Australia and Sweden.
Findings
This study shows the importance of entrepreneurs for the rapid internationalization of firms in Australia and Sweden. Different types of entrepreneurs were identified and small but important differences were identified between the two countries and different industries.
Research limitations/implications
This study shows that analysis on an individual level enhances the understanding of internationalisation in new firms. By using the concept marketing and technical entrepreneur in different industrial contexts a more detailed understanding of different internationalization patterns can be obtained. This study is limited to two countries and six case studies. The findings may be limited to the chosen firms and studies across more countries and industries are needed.
Practical implications
This study shows that the entrepreneur should be in focus when analysing new firms' possibilities to expand abroad. Entrepreneurs can use their international experience, visions, ambitions and networks as crucial competencies in an international expansion. Different types of entrepreneurs can use different international strategies.
Originality/value
The focus and detailed analysis on the individual level across different countries make this study original.
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