Corporate Internationalization Research Articles

The Effects of Different Owner Categories on Corporate Internationalization

We examine how ownership influences a firm’s internationalization strategies. We propose that owners’ type and normative beliefs about corporations’ objectives in their country of origin determine owners’ position vis-à-vis firm internationalization. In a panel of publicly-traded French corporations, we find that domestic state and corporate ownership increase commercial internationalization and international diversification. Furthermore, domestic state and institutional ownership, as well as foreign (specifically, originating from the U.S. and the U.K.) bank/insurance and corporate ownership, favor internationalization aiming to reduce firm risk, whereas U.S./U.K. institutional ownership has the opposite effect.

Corporate Entrepreneurship and Internationalization of Emerging MNEs: The Case of a Chinese MNE

How firm-level outward foreign direct investment can happen is a central question for international business research. Similarly, how emerging market firms that have few ownership advantages but suffer from various disadvantages can successfully start their international expansion is also an important question with significant theoretical and practical implications. Drawing on the perspective of corporate entrepreneurship, this paper explores this under-researched topic through an in-depth single case study of a large Chinese enterprise. We find that pre-entry strategies are critical for successful internationalization. Elaborate pre-entry entrepreneurial initiatives make it possible for firms of emerging market to surmount institutional constraints, leverage their assets, and build up competences for international venturing with limited resources.

Foreign Ownership and Firm Internationalization: Evidence from Taiwan

Internationalization has received escalating attention in corporate strategic choice. The contribution of foreign ownership to Taiwan's economic development was recognized. The higher ratio of foreign ownership indicates that foreign institutions have significant influences on corporate strategy formation, and domestic companies can benefit from assistances of their foreign investors. Hence, foreign ownership will affect corporate internationalization. This paper uses Taiwan's listed companies as sample and measure corporate internationalization by foreign assets, foreign subsidiary and country scope. Our empirical findings suggest that higher the proportion of foreign ownership and foreign director has positive association with e higher degree of corporate internationalization. Foreign investors have international experiences and linkages which foster domestic companies to engage in internationalizing activities

International diversification and conference calls

This paper explores the impact of international diversification on the decision to hold conference calls. In addition, we examine the mitigating roles of legal environment and agency problems in holding conference calls. Using a sample drawn from Taiwan, we find that greater corporate internationalization (INT) is associated with a higher likelihood of holding conference calls. We also find that firms are more likely to conduct conference calls when companies invest in a higher proportion of common law countries. We also find that the positive association between the likelihood of holding conference calls and corporate INT is less pronounced when the control divergence of controlling owners increases.

The effects of legal protections and control‐ownership divergences on investor perceptions of foreign earnings

PurposeThe purpose of this paper is to investigate the impact of corporate internationalization, governance structures, and legal protections on the foreign earnings response coefficient (FERC). The FERC is a measure of the value‐relevance of foreign earnings.Design/methodology/approachData were collected on 3,653 Taiwanese firms which had overseas investments. The authors examined the impact of the site of their overseas investments and the nature of the legal code of the investee country on the investor perceptions of firms' reported foreign and domestically‐generated earnings. Also examined was the impact of corporate governance arrangements (e.g. the difference between the owners' cash flow and voting rights) on the same components of the firms' earnings.FindingsThe empirical findings suggest that an aggressive internationalization strategy (foreign direct investment) has positive effects on the value relevance of foreign earnings, but that this strategy is impacted by the firm's own corporate governance arrangements and the target of its overseas investment efforts. While foreign investments bring about growth and profits, they expose the investors to the risk of expropriation by investee countries and corporate insiders.Originality/valueThe importance of the findings is that they should help regulatory agencies – and firms themselves – to better understand factors that can promote the global expansion of domestic enterprises.

Efeitos da internacionalização sobre o desempenho de multinacionais de economias em desenvolvimento

A relação entre o grau de internacionalização e o desempenho das empresas multinacionais (EMNs) tem sido amplamente estudada na literatura de negócios internacionais. Entretanto, a maior parte dos estudos é realizada com empresas dos países desenvolvidos. De modo a contribuir com o desenvolvimento da teoria de internacionalização-desempenho, este artigo mostra uma análise dessa relação no universo das EMNs de economias em desenvolvimento. O principal objetivo do trabalho é avaliar se a estratégia de expansão internacional dessas EMNs está sendo traduzida em forma de eficiência e eficácia na gestão do negócio da empresa. A amostra do estudo corresponde a 33 das 100 empresas multinacionais (EMNs) mais internacionalizadas de economias em desenvolvimento, sendo que as informações levantadas referem-se a um período de 6 anos (2004-2009). Os dados foram obtidos junto a duas fontes: (a) United Nations Conference on Trade and Development (UNCTAD); e (b) Thomson Reuters Datastream. Após análises de regressão múltipla, método dos mínimos quadrados, bem como análise de dados em painel, verificou-se uma relação linear-negativa entre o grau de internacionalização e o desempenho das EMNs de economias em desenvolvimento, indicando que quanto maior o grau de internacionalização, menor tende a ser o desempenho dessas empresas.

Does corporate internationalization contribute to companies’ operational efficiency? Evidence form Russian companies

Authors: Dmitry Y. Shcherbakov
 Corporate international diversification has become a widely used growth strategy. However, the majority of scientific researches insist on its value-destroying pattern. As most of these researches are focused on companies from the developed countries the experience of companies from developing countries remains fairly unexplored.The current paper proposes an estimation of internalization-performance relationship from operational efficiency prospect. The proposed model has been empirically tested on a sample of large Russian companies. The results identify a non-linear U-shape relationship between a degree of internationalization and companies’ return on capital employed. Overall for the majority of companies international diversification refers to diminish in operational efficiency.

Private International Law Questions that Arise in the Relation between Migration Law (in the Broad Sense of the Word) and Family Law: Subjection of PIL to Policies of Migration Law?

In many analyses of international family law attention is exclusively given to “cultural” aspects; the analysis of rules of international family law is often embedded in the debate on the collision of cultures. But in analyses of international family law a so-called socio-economic component can be distinguished, certainly if international family law is studied in interaction with migration law: in regulating mobility, residence, nationality and social security issues at present sensitive areas – one is inevitably confronted with the intricacies of PIL – for example, the recognition of a foreign marriage or of a foreign judgment containing a change of age of a foreigner (both typical issues of PIL) could be decisive in evaluating a residence claim or a retirement claim. Awareness of this impact of international family law apparently functions as a catalyst on various levels: in parallel with current “two-track policies” in migration law, a double-track policy is also emerging in the process of dealing with international family law. On the one hand, the European Union has “brought in” international family law as an instrument to stimulate the freedom of movement of European citizens: the awareness that mobility of European citizens within the European Union can be influenced by the way people weigh the pros and cons of its impact on the regulation of their family life, spurs the elaboration of a liberal international family law. On the other hand, when international family law issues involve non-European foreigners, national authorities sometimes tend to use international family law rules in such a way as to prevent non-European migrants from claiming residence, social security and nationality. Thus, if one examines the “economic” component of international family law, both the so-called European context (mobility of European citizens and their family members within Europe, whereby principles as free movement of persons, non-discrimination of EU citizens and European citizenship are crucial) and the so-called non-European context (migration from non-European countries) should be examined – with attention for the shaky dividing line which seems to exist between the two, as well as the double-track policy which, when comparing dynamics, seems to develop (trends to liberalisation in a European context versus opposite trends in a non-European context). An analysis of the “instrumentalisation” of PIL requires a) research into the foundations of PIL b) as well as research into PIL’s “hinge-function.” There is a need to lay down the scientific foundations for future developments in this area through the identification of a series of mechanisms, the critical analysis of the legitimacy and side-effects of current practices and the exploration of future scenarios. The paper includes references to the themes of Transnational Corporate Social Responsibility and International Labour Law, as related to Private International Law.

The Classification and Geographical Distribution of General Purpose Technologies (GPTs)

General Purpose Technologies (GPTs) have been considered as a ¡°driving force¡± in technology advance. Our study attempts to contribute to the existing literature from the following perspectives. Firstly, we re-conceptualized GPTs as some broad technology fields based on a two-dimensional construct, rather than specific patents. This new construct allows us understand the ¡°generality¡± nature of GPTs in a more comprehensive way. Moreover, we suggest that since firms are not only the ¡°users¡± but ¡°innovators¡± of specific technologies, the traditional GPT classification, which is primarily based on patent citations is problematic. We then created a new mechanism to classify the GPTs. We also mapped the pattern of geographical distribution of GPTs across different countries in the world and in the U.S. Based on USPTO patents granted to the world largest industrial firms between 1969 and 1995 and their citations back to 1890, this study found that technological specializations in GPT fields are indeed closely associated with the internationalization and localization (clustering) of corporate R&D activities. The research results in this paper will serve as a platform based upon which more studies on GPTs and their applications in technology changes, international R&D and R&D clusters can be further developed.

Other Modernisms: Recording Diversity and Communicating History in Urban West Africa

Seminal publications on West African Architecture such as Kulterman’s New Architecture in Africa and the Architectural Review’s New Commonwealth Architecture came to define the African Modern Movement as it was understood internationally. This paper explores the specific context within which this new architecture developed and the actors that helped to shape it. Vaughan–Richards’ Ola–Oluwakitan House and Cubitt’s Elder Dempster Offices are analyzed in terms of their engagement with the socio-cultural context in which they were conceived, the site-specific Modernity of the former contrasting the corporate International Style response of the latter.

The Relationship Of Development Status Of Investee Countries And Investor Perceptions Of Foreign Earnings

This study investigates the impact of corporate internationalization and the development status of investee countries on the foreign earnings response coefficient (FERC), which is a measure of the value-relevance of foreign earnings. To improve competitiveness, firms worldwide have expanded aggressively into foreign markets, thereby increasing their exposure to external risks and uncertainties on the one hand, and sources of growth and reward on the other. Using a Taiwanese sample, we found that greater corporate internationalization via investments in developed countries was positively related to the foreign ERC. We expected, and found, that companies can enhance the positive effects of internationalization by investing in countries that are relatively better developed than in countries that are less well developed. The public policy implications of these findings are discussed.

The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe

This article examines the development of corporate research and development (R&D) in the automotive industry of East-Central Europe (ECE) in the context of the internationalization of corporate R&D generally and the automotive industry R&D specifically. Driven by large inflows of foreign direct investment since the early 1990s, vehicle assembly and the production of automotive components grew significantly in ECE. In my study I investigated the extent to which these increases in production have also led to the development of automotive R&D as an example of a higher value-added function of the automotive value chain. I conducted a more detailed analysis of Czech automotive R&D because of its prominent position in ECE. Despite modest growth, my analysis uncovered inherent weaknesses of automotive R&D in ECE and strong barriers to its future development related to its peripheral position in the European and global automotive production networks.

Corporate Governance and International Trade Shocks

Corporate Governance and International Trade Shocks

Study on the Relationships between Corporate Social Responsibility and Corporate International Competitiveness

The paper descriptions the connotation of Corporate Social Responsibility (CRS), probes into the significance of CRS to Chinese corporation. Finally, brings forward the countermeasure to cope with CRS challenges, which contain increasing drumbeating for CRS to urge whole community attention, expedite the steps of corporate system reformation so that swelling corporate strength to take on CRS, adjust economy structure to promote industry structure upgrade, quicken lawmaking and exert the function of media, consumer’ association, labor union and so on in order to amplify the mechanism of supervision and restriction for CRS.

Does Corporate International Diversification Contributes to Economic Profit? Evidence Form Russian Companies

Does Corporate International Diversification Contributes to Economic Profit? Evidence Form Russian Companies

The McKesson Case: Key Transfer Pricing Principles in the Context of Debt Factoring

This paper discusses the current trial of McKesson Canada Corporation v. The Queen in the Tax Court of Canada and the related-party debt factoring arrangement and transfer pricing issues between McKesson Canada Corporation and McKesson International Holdings III S.A. R.L, a company resident in Luxembourg.

The successful factor of expatriates in transnational enterprises

With the acceleration of Taiwan corporate internationalization, roles of expatriates have also become more and more important. Therefore, domestic, academic and commercial circles on how an enterprise assigns its expatriates effectively to increase expatriate success rate, decrease losses of tangible and intangible assets and accordingly enhance competitive advantage are given by the study. In this study, 450 copies of questionnaires in total were distributed to top managers, senior staff and expatriates of international enterprises in Gaoxiong Qianzhen Processing Zone. As such, 222 copies of valid samples were recovered and the valid recovery rate was 49.3%. SPSS Analysis Software was used for empirical research and analysis. Finally, in this research, suggestions were made on expatriate assignment strategies of international enterprises. It is hoped that these suggestions would provide references, in respect to overseas investment human resource management, to small-and-middle Taiwan enterprises. Key words: Expatriate successful factor, transnational enterprises, expatriate assignment strategies, overseas investment.

The Role of Corporate Entrepreneurship in Internationalization of Small and Medium Manufacturing Enterprises (SMEs)

Many researchers and practitioners from the industry would agree on the importance of corporate entrepreneurship as an effective means for rejuvenating companies and improving their financial performance. In the era of intense global competition, Small and Medium Enterprises (SMEs) realize that a greater focus is required in entrepreneurial behaviors in identifying foreign market opportunities, seeking partnerships with foreign firms, and building organizational capabilities in order to enhance their competitive advantage. But, what do we really know about the role of corporate entrepreneurship on internationalization among the SMEs? Most of the studies focus on corporate entrepreneurship among established companies who have strengths in both resources and reputations in the market. Within this context, this article describes a study of corporate entrepreneurship and its role in SMEs internationalization. Data were collected from 300 internationalized SMEs in Malaysia, from manufacturing industry representing consumer and industrial products. Regression analysis was then used to analyze the data. The study also examines the impact of size as a moderating variable between corporate entrepreneurship and internationalization. The results suggest that corporate entrepreneurship has a positive impact on internationalization when size functions as moderating factor in relatively smaller firms. This effect on the internationalization, indicates that corporate entrepreneurship is particularly effective practice among SMEs when the companies are small. This study poses two implications for practicing managers and policy makers. First, the study encourages SMEs to nurture corporate entrepreneurship from the beginning or at inception as it pave path for firm internationalization. Second, the study suggests a need to use a long term horizon to judge entrepreneurial actions and its impacts on the firm internationalization.

Creating a Chinese “Miele”? Asymmetries in the Consumer Perception of Chinese and German Brands

This paper analyzes the country-of-origin effects of Chinese brands going international. To approach this topic, the author uses a comparative case study, in which a Chinese manufacturer of white goods, Haier, and a German manufacturer, Miele, serve as examples. Fueled by “China trash” reports in EU and US media, the image of China as country of origin still has a negative connotation. The Chinese government and Chinese companies are working to change this image, since they both regard branding as important means for corporate internationalization. This paper argues that Chinese brands could achieve a similar development as did Japanese and Korean brands in the second half of the last century.

WHY DO FIRMS BECOME GREEN? THE INFLUENCE OF INTERNATIONALIZATION ON THE ENVIRONMENTAL STRATEGY.

The article analyzes whether international activity and a firm's capability of organizational learning have an impact on the development of an advanced environmental approach in corporate internationalization. The generation of valuable and innovative environmental managerial practices is described as one capability that can be generated through the internationalization process, which is believed to lead firms to adopt a proactive environmental strategy (PES). An observation is made about how firms with high learning capability do not necessarily have to be in many regions with different environmental profiles in order to be environmentally proactive.