International Firms Research Articles

What innovation and technology delivers to internationalization? The case of European and Central Asia regions

Purpose This study aims to analyze the impact of technology and innovation on businesses’ internationalization process as well as the relationship between innovation and technology and internationalization. Design/methodology/approach The study was based on quantitative analysis of secondary data from 30 economies in Europe and Central Asia, extracted from the Enterprise Surveys – The World Bank database, using the multivariate statistical techniques of multiple linear regression and cluster analysis. Findings The results suggest that innovation and technology (I&T) mutually and positively influence the internationalization of firms. In this sense, innovative firms are more successful in competing internationally and exposure to alternative business contexts culminates in innovation. The results suggest a positive relationship between the percentage of firms that introduced a process innovation, the percentage of firms with websites and the businesses’ internationalization. Originality/value The originality of this research is based on the methodological approach that allowed the identification of the most significant variables for stimulating the internationalization of firms based on innovation and technology. Given the predominance of economies with higher I&T and internationalization in Europe, it is proposed as future research projects to ascertain the reasons for such a phenomenon.

Demystifying the ambidextrous internationalization of firms: A multiple case study in the pharmaceutical industry of an emerging economy in turbulent environment

Demystifying the ambidextrous internationalization of firms: A multiple case study in the pharmaceutical industry of an emerging economy in turbulent environment

The Role of Future Leader’s Entrepreneurial Orientation in Family Firm Internationalization Process – the Polish Context

Research background: In CEE countries, especially in Poland, research on family entrepreneurship has a shorter tradition than in western countries, mainly due to the fact that most family enterprises were established after 1989 when the political system changed. Among others, the main area of interest for researchers associated with family enterprises is succession, especially areas connected with preparation of the successor, future leader of the company. Purpose of the article: The research problem is to identify the conditions for the internationalization of family firms, which are associated with the person of a future leader (successor), in particular, those related to the entrepreneurial orientation of the leader. Therefore, the main research question is which and to what extent the dimensions of the leader’s entrepreneurial orientation influence the internationalization of family firms? Research methods: The complexity of the researched topic prompted the use of advanced statistical methods. Therefore, the quantitative analysis was carried out using the SEM-PLS method, i.e. structural equation modeling using the partial least squares method. Main findings: The dimensions that influence the internationalization are the pro-activity of the leader, the tendency of the leader to risk and the competitive aggression of the leader. Pro-activity of the leader in almost 20% affects the speed/pace of the internationalization of the family firm. This effect is enhanced by the presence of external managers. Future leader tendency towards risk and competitive aggression in almost 20% of every dimension affect the international achievements of a family firm.

Improving international brand performance: the implications of marketing capabilities, brand orientation and customer value cocreation

Purpose To thrive in today’s competitive market, international small- to medium-sized enterprises (SMEs) recognize the importance of building strong brands. Choosing the right capabilities to effectively drive brand performance remains a key challenge for SMEs. This study aims to explore how marketing capabilities affect brand orientation and performance. Specifically, the study considered the mediating impact of value cocreation and the moderating effect of innovation capabilities on the association between brand orientation and performance. Design/methodology/approach The population of interest included SMEs exporting food and agricultural products. A sample of 296 managers and export executives completed the questionnaire. Structural equation modeling (SEM) using Smart PLS3 was applied to analyze the data. Findings The findings revealed that export market planning capabilities positively affect brand orientation, but the impact of marketing information capabilities on brand orientation was not supported. The results showed that brand orientation was directly and indirectly associated with brand performance through the mediating effect of value cocreation, and that innovation capability adversely moderated the relationship between brand orientation and performance. Research limitations/implications This research focused only on two primary internal marketing capabilities affecting brand orientation, i.e. market information and product planning capabilities. Practical implications Explaining why some international SMEs adopt brand orientation activities, the results may help international firms increase their brand performance by emphasizing their marketing capabilities and creating covalue with their customers. Originality/value This research expands the existing knowledge of branding in international markets.

Beyond nearshoring: The political economy of Mexico's emerging electric vehicle industry

Nearshoring and global value chain reconfiguration trends have gained renewed relevance amid mounting disruptions in globalized production models. However, the precise dynamics behind shifts in the nascent electric vehicle (EV) industry value chain remain unclear. This study examines the factors that drive direct investment into Mexico's EV production ecosystem. It analyzes how these investment patterns reshape regional value chains while accelerating the transition toward electromobility. This analysis is based on an original 2019–2023 dataset of 48 Mexican EV production investment projects and three emblematic case studies: Tesla, Metalsa, and Sanhua. The findings suggest that the confluence of USMCA trade pact stipulations, US-China tensions, climate policy, and consumer incentives in the US, alongside specialized capabilities in Mexico, catalyze this nascent EV industry. In this fluctuating landscape, Mexico plays a dual role, both reducing US reliance on Chinese-dominated chains while attracting international firms interested in integrating into regional production networks. Thereby, the study delineates the specific drivers beyond nearshoring that have attracted EV production investment to Mexico. It, therefore, provides insights into the forces shaping Mexico's emergence as a strategic hub for regionalized EV manufacturing and outlines implications for future corporate strategies and public policies.

Exploring the impact of legitimacy on the competitiveness of international firms

Objective and interest of the work: The legitimacy of international firms is an important and complex issue that requires further academic development. International firms must enhance their legitimacy as a generator of competitive advantages to achieve their business objectives, both economic-financial and relational. However, there is a gap in the literature on the relationship between relationship marketing and legitimacy that needs to be filled. Methodology design: Through an empirical study of Shein’s buyers, the model is validated using the PLS-SEM methodology. Results: The implications of this research represent a breakthrough in the academic field by relating both theories applied to the internationalisation of companies. In addition, this research proposes implications for management by establishing strategies for international firms to achieve legitimacy, not only to enter international markets but also to create stable and long-lasting relationships with consumers. Practical implications: This research advances the theory of legitimacy for international firms. International companies must legitimise themselves and build customer loyalty in their host countries if they are to survive and generate economic benefits.

International entrepreneurial culture of born global and non-born global family firms: a configurational approach

PurposeDelving into family business heterogeneity, this study applies fuzzy-set qualitative comparative analyses (fsQCA) to explain overlooked differences in the international performance of born global family firms (BGFFs) and non-born global family firms (n-BGFFs); through the lens of assemblage theory of family business internationalization, the study develops distinctive configurations of international entrepreneurial culture (IEC) for BGFFs and n-BGFFs.Design/methodology/approachThis study compares the theoretical tenets of IEC among 167 BGFFs versus 192 n-BGFFs in Malaysia using fsQCA – a configurational method. The study further deploys necessity analysis of fsQCA (NCA) to determine the necessity conditions within the identified configurations.FindingsBGFFs manifest elevated levels of international entrepreneurial orientation, international motivation and international non-competitor network orientation. In contrast, n-BGFFs rely on international markets, learning and competitor network orientations to secure international performance. Furthermore, necessary condition analysis (NCA) reveals that international entrepreneurial orientation and international motivation are the necessity conditions for BGFFs. In contrast, international market, learning and competitor network orientation are all required for n-BGFFs’ international performance.Originality/valueThis study is timely and contributes to advancing the international business theory of family firm internationalization. It also offers better theorizing for family firms’ heterogeneity, locating the source of that heterogeneity not just in the speed of internationalization but also in the composition of their different IECs.

The influence of institutional void and socio-cultural factors on the internationalization of emerging multinationals

The process of firm internationalization involves critical decisions regarding location, entry mode, investment levels, and the management of foreign operations. This paper examines the effects of institutional voids and socio-cultural factors on the internationalization of Emerging Multinationals (EMNCs) from the BRICS and MENA regions. We draw on institutional and internationalization theories to explain how socio-cultural factors influence the internationalization of EMNCs. Using the two-step system GMM over a ten-year period (2012–2021), we find that institutional voids, religious diversity, power distance, and a firm’s ESG practices at home positively impact internationalization. These findings contribute to the literature by quantifying key variables related to internationalization, cultural diversity, institutional voids, power distance, and ESG engagement.

Exploring the moderating effect of family communication patterns on the family CEO characteristics – family firm internationalization relationship

This article explores the impact of family CEO characteristics on internationalization and how this relationship is moderated by family communication patterns. Drawing on family communication patterns theory, which states that family communication varies across two dimensions, i.e., family conversation orientation and family conformity orientation, we argue that early family communication shapes family CEOs’ behavior in later life and moderates the effect of family CEO characteristics on internationalization. Our results from a sample of 182 Belgian private family firms (FFs )show that family CEO education has a positive effect on the internationalization of FFs, but this effect decreases as the family conformity orientation increases. These findings make unprecedented and interesting contributions to upper echelon and family business research.

The Impact of COVID-19 Pandemic on Firm Internationalization and the Role of Ownership Concentration: Evidence from Korea

The Impact of COVID-19 Pandemic on Firm Internationalization and the Role of Ownership Concentration: Evidence from Korea

The Penrose effect in the internationalization of professional service firms: an analysis of Japanese patent firms

The Penrose effect in the internationalization of professional service firms: an analysis of Japanese patent firms

Greenhouse gas assurance and carbon emission performance in light of the auditor’s reputation and the country’s development level

PurposeThe objective of this study is to determine the impact of GHG assurance on firms’ carbon emissions performance (CEP) regarding curbing carbon emissions and the effect on such by the GHG assurance provider’s affiliation and reputation. It also explores whether the affiliation and reputation of GHG assurance providers imply the relationship between GHG assurance and the firm’s CEP. Further, this study examines the moderating effect of the country’s development level on the relationship.Design/methodology/approachBased on a sample of international firms from 56 countries spanning the period from 2012 to 2020, this study utilizes the ordinary least squares (OLS) regression. We also run the OLS regression at times t+1 and t+2 to verify the baseline results. To address the endogeneity concerns arising from self-selection bias and the causality effect, this study applies the generalized method of moment (GMM) and the Heckman test.FindingsThis study finds that GHG assurance leads to better CEP by firms. We also find that engaging with accounting assurance providers leads firms to a better CEP than non-accounting assurance providers. Our results show that Big Four auditors can help firms decrease carbon emissions. We also find that the positive effect of GHG assurance is prevalent in firms operating in developed countries.Research limitations/implicationsOur study only considers the influence of the assuror’s reputation and affiliation on CEP without examining other factors that may influence the quality of assurance services provided.Practical implicationsOur study provides a practical implication related to the influence of a GHG assurance provider’s affiliation and reputation globally by providing evidence that accounting and Big Four assurance providers do play a significant role in a firm’s carbon emission performance. This study offers great insights into the GHG assurance impact on CEP with the interplay between the assuror’s affiliation and reputation and the country’s development.Originality/valueThis paper enriches the limit evidence on GHG assurance and CEP by providing novel evidence on the relationship between GHG assurance and a firm’s CEP. Moreover, this study provides insights into the implication of a country’s development level on the role of GHG assurance in CEP.

Investigating the Drivers of Firm Internationalisation: A Fuzzy Set Analysis Using Global Entrepreneurship Development Index Data

Firm internationalisation, a key driver of global economic growth, is influenced by various entrepreneurial resources. This study explores the relationships between human capital, risk capital, risk acceptance, opportunity perception, and firm internationalisation using cross-national data from the Global Entrepreneurship Development Index (GEDI). Employing fuzzy set qualitative comparative analysis (fsQCA), this study analyzes data from 137 countries. The findings highlight two primary configurations driving internationalisation: (1) risk acceptance and opportunity perception, and (2) risk capital and opportunity perception. Opportunity perception emerges as a critical factor in both configurations, while human capital is not found to be a necessary condition. These results contribute to a better understanding of the factors that foster firm internationalisation and inform policies aimed at promoting global entrepreneurial ecosystems.

Can the policy of income taxes merger reduce air pollution emission of enterprises? Evidence from China

This study examines how a uniform income tax rate affects Chinese domestic and international firms in 2008. Specifically, it investigates how this tax policy affects these enterprises’ air pollution emissions through a difference-in-differences (DID) model. Data suggest that implementing the Policy of Income Taxes Merger can effectively decrease the pollutant emission intensity of enterprises. This program aims to provide tax benefits to Chinese domestic firms while addressing pollution emissions by alleviating financial limitations and enhancing production efficiency.

Chinese Multinationals and Europe’s Geoeconomic Turn: The De‐Globalization of the Chinese ICT and Automotive Industry?

Amid increasing geopolitical tensions between Western powers and China over the alleged state-capitalist nature of Chinese corporate internationalization, European governments have introduced a set of political measures tightening their trade and investment regimes on grounds of national security and economic competitiveness. This article analyzes how this “geoeconomic turn” in Europe affected the internationalization of (state-backed) Chinese firms into Europe and hence the establishment of Sino-European corporate relations. With a focus on the Chinese ICT and automotive industries, we zoom in on corporate internationalization by distinguishing two modes: (a) outward foreign direct investments (greenfield investments and mergers and acquisitions) and (b) the formation of collaborative ties (strategic alliances and joint ventures) with European companies—a hitherto underexplored form of Sino-European corporate relations. Our analysis is predicated on a comprehensive dataset consolidating information on both modes of internationalization for the period 2000–2023. We show that, in relation to investment numbers, Chinese companies continue to expand into Europe, even if values are decreasing. We also find that the formation of collaborative ties (strategic alliances and joint ventures) has not halted but increased in the wake of Europe’s geoeconomic turn, indicating a further intensification of Sino-European corporate relations, though under the radar of tightening investment policies and mechanisms. When unpacking the variegated impact of the geoeconomic turn on Chinese companies’ internationalization strategies in Europe, our study also finds, however, that its ramifications vary substantively—not only per sector but also among companies exposed to varying degrees of party-state permeation. Applying a novel fine-grained measure to party-state permeation, the article shows that the geoeconomic turn seems to have affected predominantly those leading Chinese firms with a high party-state exposure.

Carbon neutrality and energy production in the UAE: Challenges and opportunities for the petrochemical industries

This study analyzes the strategic impacts of the UAE's push towards diversifying its petroleum industry on international petrochemical companies. The research focuses on the UAE's investments and supportive policies, highlighting the need for international firms to shift strategies by developing high-value-added products, enhancing productivity through carbon reduction and digital technologies, and diversifying export markets. Methodologies include a comparative analysis of production costs and market competitiveness. Key findings reveal the potential for hydrogen imports from the UAE due to lower production costs of blue and green hydrogen compared to Europe, advocating for a diversified hydrogen sourcing strategy. The study underscores the importance of international cooperation for technological advancement and carbon reduction, proposing joint ventures and collaborative research as pathways to enhance global competitiveness and create employment.

Small firm internationalization using digital platforms: an assessment and future research directions

PurposeThis study investigates how the extant literature approached the issue of small firms’ international market entry enabled by digital platforms.Design/methodology/approachThe paper presents a systematic literature review of the internationalization of small firms using digital platforms. It includes only empirical papers from Scopus and Web of Science databases, covering 2016 to mid-2023.FindingsThe study provides both (1) a descriptive analysis of the selected papers, encompassing their temporal and spatial distribution, methods, theoretical perspectives and the type of platform examined and (2) a qualitative analysis of the articles’ content in a narrative review structure, culminating in an integrated framework of key findings and suggested research questions on the role of digital platforms in small firm internationalization.Originality/valueThere is still a very limited number of studies addressing the phenomenon, with several scholars recently calling for further research. This paper compiles, synthesizes, analyzes and integrates the empirical literature on SME internationalization enabled by digital platforms, offering possible future avenues to advance research.

The internationalization of digital platform firms: the platform-OLI (P-OLI) framework

PurposeThe aim of this paper is to explore the internationalization of digital platform firms, specifically to investigate the advantages digital platform firms build during the internationalization journey, which helps them overcome the liability of foreignness. More importantly, drawing on network theory and Luo’s framework of new OLI advantages, a new framework of Platform OLI (P-OLI) advantages is developed for digital platform firms.Design/methodology/approachThis study adopts a multi-case method to empirically understand the internationalization phenomenon of digital platform firms in the emerging economy of India, which is a less researched area. Twenty semi-structured interviews from top executives of 12 Indian headquartered digital platform firms were inductively analyzed based on Gioia’s method, and a cross-case examination was conducted to explore the respondent firm’s internationalization journey.FindingsSeveral novel open resource and linkage advantages were identified for digital platform firms that are not covered by the new OLI advantages proposed by Luo. Furthermore, a new “I” advantage, which is information and knowledge advantage, has evolved from the data. This resulted in enhancing the scope of the new OLI framework and network theory and further enabled us to develop the P-OLI framework, a new framework for digital platform firms that reflects the specific advantages a digital platform firm builds during internationalization.Originality/valueThis is the first study which evaluates the new OLI framework from the perspective of a digital platform firm to develop a novel framework, P-OLI. Further, this study is among the few studies with an Indian digital platform firm focus and relies on primary interview data to study digital platform firms’ internationalization phenomenon.

The Role of Shareholder Management and Market Management in the Enterprise Operations Management-Enterprise Performance Relationship

This research aims to explore the moderating roles of shareholder management and market management in the relationship between operational management and firm performance. By conducting an empirical analysis of 1929 U.S. companies from 2015 to 2023, the results demonstrate that shareholder management capability and market management capability significantly moderate this relationship. Specifically, higher shareholder management capability optimizes firm performance by enhancing the efficiency of shareholder equity utilization and increasing decision-making flexibility, while higher market management capability improves performance by effectively responding to market fluctuations and demand changes. The findings support the financial management perspective of global strategy, emphasizing the importance of efficient financial resource management in international firms. This research provides new insights into the complex roles of shareholder management and market management in enhancing firm performance, particularly in the context of U.S. companies.

Social sustainability in action: An explorative study of practices in construction project management

The significance of recognizing social sustainability practices for the successful management of projects is increasingly acknowledged. However, to what extent these practices are actually implemented within project management has not been sufficiently addressed in the literature. To address this gap, an empirical study was conducted to investigate the usage of social sustainability practices and explore any disparities in their implementation between domestic and international construction firms in the United Arab Emirates. This study employed a mixed-methods approach, combining interviews and a structured questionnaire. Through the interviews, 32 social sustainability practices were identified. Subsequently, a questionnaire was used to collect data from project managers representing 259 firms. The analysis revealed several key findings: 1) social sustainability practices are adopted at varying rates; 2) twelve practices, primarily concerning fundamental human rights and labor ethics, are uniformly employed by both domestic and international firms; and 3) international firms are more likely than their domestic counterparts to regularly implement the other 20 social sustainability practices. These findings develop new knowledge on the implementation of social sustainability practices and advance the understanding of how firm origin influences the adoption of these practices. Additionally, the findings and their implications provide valuable guidance for policymakers and project leaders looking to incorporate social sustainability practices into their operational strategies.