Exploring the roles of government involvement and institutional environments in the internationalization of Chinese Internet companies

The interactions between government, institutions, and Internet companies have gained attention in the research on the globalization of China’s Internet. However, few studies have been conducted at the company level, and the knowledge about the roles of government and institutions remains limited. Drawing on institutional theory, this empirical study explored the roles and mechanisms of government involvement and the institutional environment in the internationalization of Chinese Internet companies. The results indicated that government involvement could improve these companies’ degree of international breadth through both state ownership and governmental affiliation. However, the results showed that state ownership had a restraining function on their degree of international depth. In the context of institutional transition in China, these effects could vary according to whether Internet companies operate in good or poor institutional environments. By revealing these relationships, this study contributes to both the theoretical and the empirical understanding of governmental influence and institutional roots in the globalization of China’s Internet.