Internationalization Of Enterprises Research Articles

A knowledge-based perspective on SME foreign market entry mode choices and changes

PurposeDespite the importance of foreign market entry mode (FMEM) decisions for the internationalisation of small and medium-sized enterprises (SMEs), there is insufficient understanding of the knowledge types and sources necessary for such decisions. This study addresses this issue by investigating the knowledge configurations that underpin FMEM initial choices and subsequent changes in SMEs.Design/methodology/approachThis study adopted an interpretive approach and analysed empirical data from 37 in-depth interviews with decision-makers in internationalised SMEs from the United Kingdom.FindingsThe findings reveal that different knowledge configurations drive FMEM decisions in SMEs. Based on the analysis conducted for this study, initial FMEM choices draw on prior experiential knowledge combined with knowledge from desk research and knowledge acquired from peers, competitors and international partners. However, unlike many previous contributions, this research shows that foreign market experiential knowledge does not influence mode changes. Within-mode changes rely mainly on mode-specific knowledge and on knowledge about exploiting the benefits of the internet and digital platform ecosystems. Conversely, between-mode changes draw on diverse knowledge that is frequently created in interaction with international stakeholders or acquired externally.Originality/valueThis study contributes to the SME internationalisation literature by highlighting the knowledge configurations that inform not only initial choices but also between- and within-mode changes. Moreover, it reveals the importance of distinct types of digital technology-based knowledge for facilitating mode changes. It also adds to the knowledge-based perspective by underscoring that dynamic and heterogenous knowledge configurations, often created in interaction with international stakeholders, promote firm internationalisation.

Understanding the internationalization of Indian state-owned enterprises

ABSTRACT The article examines the global activities of high-value Indian state-owned enterprises (SOEs) classified by the government as “Maharatnas” and “Navratnas.” Using the FESPET framework, the paper assesses their performance and international presence, revealing their commitment to a public mission beyond financial gains. These SOEs prioritise social spending and often surpass regulatory environmental targets, serving as valuable assets in India and globally. Profitable SOEs demonstrate positive impacts abroad, while financially unsustainable ones fall short in contributing to the non-financial “ESPET” dimension.

Thematic analysis of women entrepreneurship in the internationalization of small and medium-sized enterprises (SMEs)

Thematic analysis of women entrepreneurship in the internationalization of small and medium-sized enterprises (SMEs)

The effectiveness of government incentives for outward investment: The case of China's Belt and Road Initiative

AbstractChinese government introduced a package of incentives to encourage enterprise internationalization under the 2013 Belt and Road Initiative. There is regional variation of this policy incentive, based on which, we examine its impact on listed firms' outward investment. The results evident resource misallocation in firms in specific industries which received incentives; instead of utilizing them for overseas investment, the beneficiary firms were directed toward increasing domestic investment. Contrarily, firms in industries that were not incentivized (restricted industries whose domestic development is not encouraged) were inclined to engage in overseas investment. We provide possible explanations.

Crowdfunding and Social Capital: A Pathway for The Internationalization of MSMEs and Social Enterprises?

Micro and social entrepreneurs face multiple challenges, including limited access to funding, knowledge systems, networks, and markets, which limit the growth and development of their ventures. This study seeks to understand how the participation in crowdfunding and its utilization to internationalize can help micro and social enterprises address challenges through social capital. Through a narrative review of literature anchored on the resource-based and knowledge-based theories of the firm and the theory of social capital, this study finds that crowdfunding provides access to funding, knowledge systems, and networks. Moreover, the participation in crowdfunding provides access to large, international markets. However, despite these benefits, there remains challenges to micro and social enterprise participation in crowdfunding as there is low awareness and adoption in developing countries. Furthermore, there is still question on crowdfunding’s viability as an internationalization strategy. The study ends by identifying directions for future research.

Does fintech facilitate enterprise outward foreign direct investment? Evidence from China

We examine whether and how fintech affects OFDI decision making by using data on listed Chinese companies. We find that the development of regional fintech stimulates OFDI. This effect is more pronounced for firms without political connections, in the eastern region, with production-oriented OFDI and that are nonstate-owned. Fintech supports firms in carrying out OFDI through the mitigation of financing constraints and the promotion of technological innovation. We emphasize the role of technology-enabled financial innovation in the behavior of enterprise internationalization.

Potential, Challenges and Prospects: Internationalization of Small and Medium Enterprises (SMEs) in Malang Raya

This research aims to investigate issues related to the phenomenon of internationalization of SMEs in Malang Raya, analyze the potential and challenges faced, and formulate future prospects. The method used in this research is qualitative phenomenology. The results of this research are that internationalization has become an important strategy for Small and Medium Enterprises (SMEs) in various parts of the world, including in Malang Raya. Malang Raya, with its rapidly growing economic potential and product diversity, offers great opportunities for SMEs to expand their market reach to an international level. However, to achieve success in internationalization, SMEs in Malang Raya are faced with various challenges, including capital issues, human resource management, technology and market access.
 

Digital Technologies and the Internationalization of Small and Medium-Sized Enterprises

Small and medium-sized enterprises (SMEs) make important contributions to sustainable economic growth, employment, poverty alleviation, local development, and human wellbeing in developed and developing countries [...]

The role of cities in cross-border mergers and acquisitions — Evidence from China

This study explores the impact of an international friendship city, serving as diplomatic relations between cities, on the transaction time and equity ownership choice in cross-border mergers and acquisitions (CBMAs). Analyzing data from Chinese firms spanning the period 2001 to 2019, we discover a positive and significant correlation between the establishment of an international friendship city and shorter CBMAs duration and higher CBMAs share of equity. Further evidence suggests that the effect is more pronounced (a) in target countries that keep cooperative partnerships with China, (b) countries along the Belt and Road, and (c) state-owned enterprises (SOEs) acquirers. In addition, we identify effects at the provincial level, demonstrating a correlation between the number of international friendship cities and positive outcomes. Mechanism tests show that the subnational-level friendship relationship consolidates cultural exchange and lessens institutional barriers, thereby reducing the completion time and raising the ownership of acquirers. Drawing on political perspective, our results provide new insights into the important role of friendly diplomatic relations to cross-border investment for enterprises internationalization.

Managing big data and blockchain for enterprise internationalization process: Mediating role of dynamic accounting system capability

Abstract This study develops and confirms a model that examines the relationship between Big Data Analytics Capabilities (BDAC), Blockchain Technology (BT), and Internationalization Process (IP). It also requires various efforts to explore how Dynamic Accounting Information System Capability (DAISC) mediates the interconnections between BDAC, BT, and IP. This study focuses on small and medium enterprises (SMEs) in Vietnam, which are widely recognized as crucial to the Vietnamese economy. The current research utilized the hypothetico-deductive method. The proposed model's hypothesized linkages were based on a comprehensive evaluation of relevant literature and investigations. The statistics database was created using a paper-and-pencil survey distributed to 612 accountants in SMEs in southern Vietnam utilizing the convenient and snowball sampling technique. A covariance-based structural equation modelling approach was used to assess the measurement and structural models in this research due to its ability to offer a strong foundation for analyzing intricate linkages within a research framework. The outcome confirmed the significant and positive relationships between BDAC, BT, and IP. Concurrently, these relationships were partially influenced by DAISC. The practitioners would greatly benefit from detailed insights on the findings, as they would provide guidance on how to identify and take advantage of the growth opportunities afforded by digital technology. Moreover, the observations could provide policymakers with new insights on necessary policy measures to support the application of digital technologies and encourage the implementation of a dynamic accounting information system, which could result in significant benefits in the future.

Enhancing the Capacity of Certified SMEs Facilitators for the Internationalization of Aceh's Micro, Small, and Medium Enterprises

This community services aims to enhance the capabilities of certified SMEs facilitators from the Faculty of Economics and Business, Syiah Kuala University to internationalizing Aceh's Micro, Small, and Medium Enterprises (SMEs) through participation in the 19th Malaysia International Halal Showcase (MIHAS) 2023. That is not merely a journey to MIHAS; it is a strategic investment in building the competencies of facilitators who, in turn, become ambassadors of knowledge, aiding local SMEs enterprises in embracing internationalization with confidence and competence. Results showcase strengthened international networks and market reach, emphasizing the impactful role of university-community collaborations.

The longer, the farther? The internationalization of Chinese firms

Purpose This study aims to explore the internationalization of multinational enterprises (MNEs) from China and aims to examine the relationship between Chinese MNEs’ duration of internationalization and export intensity, and the contingent roles of the home country government. Design/methodology/approach By extending the springboard theory with institutional and cost-benefit analyses, the authors elaborate a two-phase framework of internationalization to explain how Chinese MNEs develop their international business under the influences of the home country government. Furthermore, the authors apply the Heckman two-stage method based on a panel data set of 19,994 firm-year observations of Chinese listed firms in 2008–2018 to test the hypotheses. Findings The research findings demonstrate an inverted U-shape relationship between the duration of internationalization and the export intensity of MNEs from China. The export intensity of MNEs from China increases during the initial phase of internationalization, and decreases during the subsequent. A further study reveals that the inverted U-shape of Chinese non-SOEs is steeper than that of SOEs, and this moderating effect is more salient after the Belt and Road Initiative. These results highlight the influence of the home government through state ownership and policies on the inverted U-shaped relationship. Originality/value This study helps to refine the understanding of Chinese MNEs’ global expansion by addressing time as an explicit dimension and revealing the mechanism of state ownership and the home country governmental policy in the dynamic internationalization process.

Analysis of the impact of China's OFDI on China's export trade

This article aims to analyze the impact of China's outward foreign direct investment (OFDI) on China's export trade. In theoretical analysis, the motives behind China's OFDI were explored, including seeking resources, expanding the market, enhancing technology and management capabilities, and promoting enterprise internationalization. In terms of positive impact, the positive impact of OFDI on expanding export markets, enhancing product competitiveness, and optimizing industrial structure was discussed. However, it also pointed out negative impacts such as backflow effects and trade protectionism. By taking Huawei's investment in the African market as a case study, this paper analyzes its impact on expanding export markets, upgrading technology, increasing export added value, and driving the development of related industries. In the analysis of influencing factors, multiple factors such as policies, markets, and industries were mentioned. Finally, policy recommendations for the development of OFDI from the perspectives of government, enterprises, and industry were proposed.

How Do Local Enterprises Give Full Play to Advantages and Transform into Internationalization A Case Study on Nongfu Spring

Under the trend of economic globalization, international trade is becoming increasingly frequent. Many benefits such as natural resources and technology can be pursued by enterprises. This means that enterprises can gain more opportunities in the international market. Internationalization of enterprises is an opportunity for further development, whether it is demand financing, improving technology, or expanding market size.Chinese enterprises do not have a first-mover advantage due to their late exposure to the international market, so the methods and tactics of their international transformation are more important. This article takes Nongfu Spring, a cutting-edge enterprise in Chinas mineral water and tea beverage industry, as an example to summarize its successful experience in the Chinese market and its replicable advantages in international transformation. This article also provides a comprehensive overview of the overall internationalization process of Chinese enterprises and provides specific plans for the companys international transformation, providing valuable experience for the internationalization of other ethnic enterprises in China.

On support from National Development Banks for the internationalisation of public Brazilian companies: it’s hard to say goodbye (to good companies)

ABSTRACT This article examines the relevance of National Development Banks (NDBs), taking as a reference the activity of Brazil’s BNDES (Banco Nacional de Desenvolvimento Econômico e Social) and its role in the internationalisation of State-Owned Enterprises (SOEs). NDBs cover market failures in access to financing for companies, and they promote the development of nascent industries. Within the business cycle, the key determination to be made is at what point NDBs should withdraw their support and reallocate resources to other developing industries and companies. Using operations databases from BNDES, this process is analysed by considering the different strategies followed by flagship Brazilian companies, including Vale, Embraer, and Petrobras.

Internationalization of enterprises and quality of financial reports in China: Moderating roles of audit committee characteristics

In the process of seeking sustainable development, enterprises have chosen international business strategy. The purpose of this study is to examine the relationship between the degree of internationalization of Chinese listed firms and financial reporting quality, as well as whether audit committees can moderate the impact of enterprise internationalization on financial reporting quality. The empirical analysis results of Chinese listed manufacturing firms from 2014 to 2018 show that: the degree of corporate internationalization has a significant U-shaped relationship with earnings management. This new finding solves the problem that scholars have inconsistent views on the internationalization of enterprises and the quality of financial reporting. The study also found that audit committees with experience working in accounting firms can inhibit firm earnings management behavior in the early stage of internationalization; audit committees with experience working overseas can inhibit firm earnings management behavior in the later stage of internationalization; the higher the remuneration of audit committee experts, the more it can inhibit firm earnings management behavior in the early stage of internationalization. In the later stage of internationalization, the higher the remuneration of audit committee experts, it helps the earnings management behavior of firms. This provides new evidence on the functioning of the audit committee’s role; however, the independence of the audit committee and the proportion of financial experts do not have a significant effect on the inhibition of earnings management.

The impact of the Belt and Road Initiative on green innovation and innovation modes: empirical evidence from Chinese listed enterprises

Under the Belt and Road Initiative (BRI), promoting green innovation in enterprises has been the central focus of the developmental strategy for China and countries along the Belt and Road to ensure sustainable development in line with the UN Sustainable Development Goals (SDGs) related to the environment and development. This paper examines the driving factors and heterogeneous mechanisms of the BRI in green technology innovation, especially in collaborative vs. independent innovation modes, utilizing a multi-period difference-in-difference model (DID) and micro-level panel data of Chinese listed enterprises spanning from 2007 to 2021. We find that the BRI has significantly stimulated the number of green innovations of participating enterprises, primarily through the adoption of collaborative innovation mode, and the BRI policies are more likely to induce green innovation behavior of enterprises with high research and development (R&D), high quality of environmental information disclosure, and non-state-owned enterprises (SOEs), as well as in heavy-polluting industries. The implementation of the BRI has led to increased support from the government, financial institutions, and scientific research organizations to the participating enterprises, which helps alleviate their financial constraints and enhance patent transformation efficiency, and thus facilitate green innovation. These results are robust across different regression specifications. This study contributes to the existing literature on BRI’s environmental impact and green innovation with firm-level evidence, and has important policy implications for the Chinese government when promoting green innovation and internationalization of Chinese enterprises.

Convergence or Divergence: A Computational Text Analysis of Stakeholder Concerns on Manufacturing Upgrading in China

Stakeholder participation is essential to the reasonable design and smooth implementation of industrial policies. Discourse analysis can be employed as a valuable methodology to decode stakeholder (dis)agreements. Following stakeholder theory, we examine four stakeholder groups, namely the government, enterprises, media, and academia, to analyze the public focus of industrial upgrading in China. We adopt a computational text analysis approach (keyword frequency calculation, word collocation analysis, and theme identification) to understand the divergent and convergent stakeholders’ concerns toward manufacturing upgrading in China from 2015 to 2020, which is widely considered as a manufacturing upgrading policy formulation stage. Our results show that stakeholders mainly focus on innovation capability and digital transformation for China's manufacturing upgrading. There, industrial planning is the major issue for government and academia. Contradistinctively, enterprises’ main concern is servitization. Enterprise internationalization is more frequently mentioned than manufacturing upgrading in the media industry. Policymakers should engage in various tactics to make the policies endorsed by other stakeholders. Most importantly, the government should fully integrate the views of entrepreneurs in the policy initiation stage. We provide practical implications for the Chinese government to implement better the Made in China 2025 plan.

Chief executive officers' characteristics and the internationalisation of small and medium-sized enterprises: a quantile regression approach

Chief executive officers' characteristics and the internationalisation of small and medium-sized enterprises: a quantile regression approach

Internationalisation and growth of small sustainable fashion enterprises

Internationalisation and growth of small sustainable fashion enterprises