Examining Causal Relationships among International Experience, Perceived Environmental Uncertainty, Market Entry Mode, and International Performance

Abstract

Abstract Purpose The relationship between internationalization efforts of businesses and resulting performance has long been debated in the international marketing literature. Specially, under the environmental uncertainty, perception and experience of managers are important for internationalization performance. Methodology/approach This study proposes an integrated research framework and mechanism between perceived international risk and international marketing performance, adopting international experience as moderator variable and entry mode as mediating variable. Survey was conducted on 1,612 managers of 420 Chinese international enterprises by email and received 463 valid questionnaires. Findings The results show that there is a significant negative relationship between perceived international risk and international performance. Direct influence and perceived international risk have an indirect influence on international performance through entry mode; the influence on the international performance from perceived international risk is moderated by international experience, the regression coefficient between perceived international risk and international performance is the quadratic function of international experience. Originality/value Different from previous literature, this study found the complex relationship between risk and performance.