R&D internationalization,product diversification and international performance for emerging market enterprises: An empirical study on Chinese enterprises

One motivation behind R&D internationalization for emerging market multinationals (EM MNEs) is to expand international markets. This paper analyzes whether the R&D internationalization of EM MNEs contributes to an improvement in international performance measured by foreign sales as a percentage of total sales (FSTS). Using panel data on China's listed companies, this paper introduces more scientific and normative indicators for measuring R&D internationalization in terms of geographic distribution (breadth) and overseas investment (depth). The results reveal an inverted U-shape relationship between R&D internationalization and international performance that is initially positive and eventually becomes negative. Product diversification has a significant moderating effect on the relationship between R&D internationalization breadth and international performance.     

How Do SMEs Decide on International Market Entry? An Empirical Examination in the Middle East

This study contributes to the scant literature that scrutinises the decision-making process preceding foreign entries, particularly in the Middle Eastern context. While considerable research has examined the content and antecedents of the internationalisation decision of firms, far less attention has been paid to how SMEs decide on international market entry. The answer to this question is important to advance our understanding of internationalisation processes and offer essential insights for first and successive market entries, particularly post political crises. Through an embedded approach to case study, the analysis of four SMEs based in Egypt and Qatar suggests that SMEs' decision-making evolves into a rational mode as SMEs progress through successive international market entries. The study also captures the co-existence of reactive and bounded rationality modes during SMEs' unplanned internationalisation and suggests that SMEs are likely to adopt a bounded rationality mode as a response to the occurrence of a political crisis in the home country.     

How does distance affect market entry mode choice? Evidence from French companies

The objective of this article is to examine the relevant dimensions of distance for foreign market entry mode choice. Based on a sample of 203 interfirm linkages formed by French multinationals with partners across the world, we analyze the impact of four dimensions of distance on the choice between cooperative alliances and mergers-acquisitions. The findings indicate that administrative and economic distance have a significant influence on market entry mode choice, whereas the impact of cultural and geographic distance is not significant. They further highlight the important role of the host country's government effectiveness for market entry mode decisions.     

Cross-border acquisition performance of emerging market multinational enterprises: The moderating role of state-ownership and acquisition experience

This paper draws on the resource-based view and organizational learning theory to analyse the moderating role played by state ownership and acquisition experience in the performance of emerging market multinational enterprises (EMNEs). We contribute to the evolving literature on state-owned EMNEs by identifying various post cross-border acquisition (CBA) strategies, which have an impact on the performance of such firms that differs for the one they have on privately owned EMNEs. We test our hypotheses by performing a panel regression analysis on a large firm-level dataset spanning 43 emerging markets over the 2006–2015 period. Overall, our findings point at an inverted U-shape relationship between diversification through CBAs and firm performance. More specifically, this concave relationship is greater when the diversification occurs in developed countries, as opposed to emerging ones. Furthermore, there is evidence that state-ownership and EMNE acquisition experience moderate these relationships both in domestic and foreign markets, albeit with different intensities.     

中国企业拓展国际市场的模式与策略研究--以荷兰中资企业的实证分析为例

在特定的国外市场选择正确的进入方式是企业国际化进程中最重要的决策之一,也是跨国公司拓展国际市场、实施全球战略的重要思路.本文以企业国际市场进入模式决策的相关理论探讨及模型构建为基础,通过对在荷兰中资企业的实证分析,探讨中国企业如何顺应世界潮流,实施"走出去"战略,选择拓展国际市场的适当模式,以及如何在全球范围内最有效地利用各种经营资源,以提升自己的竞争能力,在跨国竞争中求得生存和发展的相应策略.     

An interaction orientation approach to SME-Intermediaries relationships

Small and medium-sized enterprises (SMEs) engaging in foreign operations have drawn significant research attention in recent years. One of the aspects linked to such operations is SMEs’ expansion to foreign markets, often relying on local intermediaries. These intermediaries provide the firms with valuable resources such as market knowledge and recognition and reduce foreign operations’ costs. Hence, they are often considered as strategic partners. The current study aims to expand the existing knowledge regarding the relationships between business to business SMEs and their intermediaries by exploring interaction orientation as an organizational cultural aspect and its linkage to the trust-conflicts balance. Based on a survey of 165 international venture managers, complemented by in-depth interviews with 16 senior export managers, we found that by incorporating interaction-orientation constructs into the relationship management, SMEs can enhance affective trust while mitigating conflicts. We also reveal that the impact of emotional and task conflicts on SMEs’ performance is mediated through calculative trust, indicating the benefits of balancing between relational and formal governance.     

外资银行的进入对我国信贷市场贷款价格的影响

本文从中资银行和外资银行分别具有信息优势和融资成本优势的基本假设出发,建立了不对称信息下的银行信贷市场竞争模型,从贷款价格的角度来研究外资银行通过绿地投资和兼并收购两种方式进入对我国信贷市场的影响,且在并购方式中将并购对象按规模分为了本地大银行和小银行。结果表明,外资银行通过兼并收购本地大银行方式进入对贷款价格的降低效果不大,而通过兼并收购小银行方式进入能够全面降低本地银行的贷款价格,在处于竞争劣势地位的本地大银行的老客户市场通过绿地投资模式进入可以大幅度的降低贷款价格。     

Greenfield Investment versus Akquisition

Based on neo-institutionalism, the present paper examines the moderating impact of perceived institutional uncertainty on the foreign establishment mode choice (i.e. the decision between greenfield versus acquisition) of German SMEs. The empirical findings demonstrate that the extent of perceived institutional uncertainty moderates the relationship between the investment volume, market growth and the decision between greenfield and acquisition. Focusing on the perceived institutional uncertainty, the paper adheres to the fact that due to limited resources of SMEs, SME managers often cannot make their managerial decisions based on profound knowledge from prior market analysis, but they have to follow their own intuition and perception. The key contribution of this paper is hence on the link between frequently studied establishment mode choice predictors and perceived institutional uncertainty of SME managers. This focus contributes to resolving some of the inconsistencies in previous research and to emphasize SMEs which have been largely neglected in prior literature.     

Determinants of strategic options in multinational market competition

This article conceptually explores the determinants of strategic options in multinational market competition. It draws on and integrates three research streams in strategy and international management: action and response in competitive rivalry; multipoint competition, and global competition and strategy. Specifically, it examines the various factors that determine whether and when a multinational corporation (MNC), while under attack from a rival MNC, will adopt the following responses: doing nothing, defending, counterattack, and total war. Those factors are organized into four categories: (1) types of attack, including price cut, introduction of new product, entry into new market, and advertising campaign; (2) awareness of interdependence of multinational markets, determined by market overlap, MNC strategy, and MNC organization; (3) motivation for globally coordinated moves, determined by the centrality of national markets, strategic importance of national markets, perceived importance of national markets, and perceived importance of rivals; and (4) feasibility of response, determined by entry barriers and diversity of national markets as well as resource heterogeneity and differential between rival MNCs. The effects of these four categories of factors on the choice of response are explored respectively. Research implications are offered in concluding remarks.     

Internationalization of Emerging Economy SMEs: A Tripod Approach

Research suggests that internationalizing SMEs in the West enjoy far greater institutional support. There is, however, little understanding of the internationalization processes of emerging economies' SMEs (EESMEs) and yet they are notable contenders in international trade. Accordingly, this research draws from an integrated strategy tripod framework to develop new perspectives accounting for how Iranian-based EESMEs internationalize and compete in international markets. A comprehensive analysis of Iranian EESMEs' survey data revealed that, other than their owner's managerial perceptions of their industry, firm, and institutional constraints, international market knowledge (IMK) significantly moderated their internationalization strategies. Such understanding advances research on firm internationalization by pinpointing the central role of IMK in forming internationalization strategies by EESMEs in hard-to-reach contexts, which has implications for academic research and policy-making, leading to needed reform based on theory and practice.     

Uncovering the factors behind new ventures’ international performance: Capabilities,alertness and technological turbulence

This research is based on the perception that the explanation of International New Ventures' (INVs) performance demands a process view, going deeper than the standard approach, in empirical papers, of testing a direct relationship between company-level antecedents and performance. A three-tier model was developed to investigate the process leading to INVs international performance, emphasizing the role of entrepreneurial alertness. Based on the dynamic capabilities framework, entrepreneurial alertness was envisaged as the mediating element between firms' capabilities and their international performance. Empirical research confirmed the hypothesized model. Firms' capabilities (entrepreneurial orientation, foreign market knowledge, and absorptive capacity) significantly influence the level of entrepreneurial alertness, which impacts on the levels of self-reported satisfaction with the company's international performance. The paper makes four contributions to International Entrepreneurship literature. First, it highlights the key role played by entrepreneurial alertness in explaining INVs' international performance. This is convergent with the dynamic capabilities view on firms' ability to sense and seize specific international business opportunities. Second, this study considers entrepreneurial alertness as a capability that is not limited to the entrepreneur, but it is an organizational capability. Third, it shows that entrepreneurial alertness does not exist in the vacuum, is based on a set of base capabilities, namely entrepreneurial orientation, foreign market knowledge, and absorptive capacity, that simultaneously leverage the INVs to sense possible opportunities and constrain the focus of opportunities to international markets, as a key element to foster INVs' higher performance. Fourth, it underlines the role of technological turbulence as a moderator of the relationship between entrepreneurial alertness and INVs' international performance.     

Effects of constructive politics and market turbulence on entrepreneurial orientation–performance relationship: A moderated mediation model

The study examines the interaction effects of constructive politics and market turbulence on the entrepreneurial orientation–performance relationship. The proposed structural model tests the mediating role of constructive politics between the entrepreneurial orientation and performance constructs and the moderation effect of market turbulence on this mediating relationship. Data were collected from 145 small and medium-sized enterprises (SMEs) in the United Arab Emirates. The results suggest that entrepreneurial orientation indirectly affects performance through constructive politics. Furthermore, the results indicate that the relationship between constructive politics and the firm's performance was stronger during low market turbulence. Findings suggest that entrepreneurial-oriented SMEs should embrace constructive politics where influence and power can be channeled to enhance financial performance, especially in market stability.     

The Implementation of an International Market Servicing Strategy in UK Manufacturing Firms

This paper presents results from an empirical investigation into the impact of foreign market servicing strategies on the competitiveness of UK manufacturing firms in five industry sectors. Competitiveness is defined by performance, competitive potential and management process. Although the choice of foreign market servicing mode is highly constrained, there is a range of choice available to firms, although this choice is often reactive rather than proactive. The impact of market servicing switches on competitiveness is often profound, although it is not always positive. Moreover, these effects may be in different directions on the three components of competitiveness. Attention to foreign market servicing policies is crucial for achieving international competitiveness.     

Drivers of internationalization success: a conjoint choice experiment on German SME managers

Internationalization is a common growth strategy for small and medium-sized enterprises (SMEs). However, SMEs face several challenges within the internationalization process. As SMEs are characterized by limited resources, managers are constantly involved in a decision-making process concerning the allocation of the SMEs’ resources. Therefore, internationalization can be understood as a complex, multidimensional decision process. Based on a set of 2244 internationalization decisions made by German SME managers, the present study examines how eight strategic and structural factors drive the perceived international success of SMEs. When applying conjoint choice analysis, the results suggest that especially equity financing in the internationalization process, an appropriate market selection as well as proactive motives, and a long-term scope can drive SMEs’ international success. Moreover, it becomes evident that strategic factors are more relevant for successful internationalization than structural factors.     

The international business incubator as a foreign market entry mode

Foreign market entry for the firm is often a more complex process than suggested by theoretical models, which can often benefit from re-contextualising and extension in order to retain their explanatory power. In this article, case study research shows how an international business incubator in China, operated by a British export promotion organisation is able to facilitate the foreign market entry of firms. The findings provide an opportunity to highlight a hitherto under-researched method of foreign market entry, explore the synergies between the foreign market entry and business incubation literature and also to extend theory by integrating the role of the business incubator as a method of foreign market entry into existing models and frameworks.     

International Experience in International Business Research: A Conceptualization and Exploration of Key Themes

International experience, the experience that firms accrue from operating internationally, is a key concept in explaining firm internationalization. This paper reviews the conceptualization of international experience in the international business literature. It highlights how prior research has identified three dimensions of the international experience construct (length, scope and diversity), thereby demonstrating that international experience should be treated as a multidimensional construct. In addition, intensity is presented as a fourth and novel dimension of international experience. The importance of this multidimensional conceptualization is highlighted in an explanation of why the international diversification and international experience constructs are not synonymous. In light of the importance of international experience in explaining firm internationalization, the authors explore how the source of the firm's international experience will determine the limits to its application in foreign markets. In particular, the authors distinguish between location‐bound international experience and non‐location‐bound international experience as sources of firm‐specific advantages (FSAs). The FSAs that the firm develops from its experience with equity and non‐equity entry modes are presented as examples of specific FSAs developed within the firm's bundle of FSAs concerning internationalization. The paper concludes with some implications of the conceptualization of international experience for several issues of international business research as well as providing managerial implications.     

International corporate social responsibility and post-entry performance of developing market INVs: The moderating role of corporate governance mechanisms

Building on the stakeholder, agency, and resource dependence theories; this paper investigates the role of international corporate social responsibility (CSR) for the post-entry performance of developing market international new ventures (INVs) in the presence of corporate governance mechanisms to overcome their agency and environmental problems. We test and validate the conceptual model using survey data collected from 110 INVs operating in the developing market of Pakistan. Our results show that international CSR promotes the post-entry performance of developing market INVs. Further, we found that this association is moderated by corporate governance mechanisms of ownership, board independence, and returnee board members. Specifically, the relationship between international CSR and post-entry performance is weaker when ownership is concentrated but stronger when outsider and returnee board members are present in developing market INVs. The findings of this study have important theoretical and practical implications for INVs' social strategies and international performance contingent upon corporate governance.     

企业国际化经营中关键风险的识别研究

风险识别是企业从事国际化经营时进行风险管理采取的首要步骤,也是进一步实施风险防范与规避的前提和基础.本文以中国企业的国际化经营为研究背景,在对国际风险分类与识别进行理论推导的基础上,通过实证研究,对企业在采取不同国际市场进入模式时所面临的各类风险加以识别,并对关键风险进行聚焦探析.     

The influence of industry structure on the entry mode choice of overseas entrants in manufacturing industries

This study examines the impact of industry structure on the foreign direct investment (FDI) entry mode decisions by multinational enterprises (MNEs) in manufacturing industries. We explore the notion that firms would seek to balance the risks due to industry structural barriers and liabilities of foreignness while seeking entry in international markets. A multinomial logistic regression model is used to test 336 entry decisions from 18 countries entering the United States over the period 1989–1994. Empirical evidence shows that underlying industries' structural characteristics influence a firm's preference for entry mode alternatives such as greenfield investments, acquisitions, and joint ventures. In concentrated and high-growth industries, foreign firms prefer entry by setting up greenfield operations rather than pursuing acquisitions or joint ventures. However, in industries characterized by high gross profits or higher plant scale, the preference is for joint ventures or acquisitions as an entry mode over greenfield operations.     

Regional Integration,Multinational Enterprise Strategy and the Impact of Country‐level Risk: The Case of the EMU

The European Monetary Union (EMU) provides a new macro‐level, institutional setting for multinational enterprises (MNEs). The authors investigate the impact of regional integration on MNE strategy by analysing Belgian firms’ entry‐mode choices in foreign markets, both EMU and non‐EMU ones, with a focus on what impact remains of country‐level risk. They demonstrate that regional integration has altered the impact of country‐level institutional risk on MNE entry‐mode choices inside the EMU. The conventional predictions of international business theory have been reversed, with higher country‐level risk inside the EMU driving a preference for wholly owned subsidiaries. Within the integrated region, insider firms now view higher country‐level risk as the equivalent of higher, micro‐level contracting risk. Such risk can best be mitigated through full internalization, combined with arm's length contracts, rather than through equity joint ventures.