International Firms Research Articles

Beyond Connectivity: Artificial Intelligence and the Internationalisation of Digital Firms

Beyond Connectivity: Artificial Intelligence and the Internationalisation of Digital Firms

Familiness and internationalisation of family firms: a resource-based view

Familiness and internationalisation of family firms: a resource-based view

International opportunity perspective on internationalisation of family firms in developing countries

International opportunity perspective on internationalisation of family firms in developing countries

Influence of institutions and internationalization on environmental performance of metallurgical MNEs

Goal: the paper aims to uncover how institutions and internationalization influence the environmental performance of metallurgical multinational enterprises (MNEs). More specifically we pose the following research questions: what is the effect of internationalization and institutions in both home and host market on MNEs environmental performance; whether MNEs mitigate institutional pressure in their home countries by expanding their internationalization. Metodology: the paper builds on quantitative analysis based on panel data regression. We analyze a dataset of the largest metallurgical MNEs from different countries, covering the period from 2017 to 2020. We focus on metals and mining sector which is a major contributor to the global greenhouse gas emissions. Findings: we find that internationalization and stringent climate policies in home country are positively associated with environmental performance of metallurgical MNEs. Additionally, we observe that general institutional factors in the home country, such as the protection of minority shareholders also contribute to the environmental advancement of MNEs. Though, the extensive internationalization of metallurgical firms negatively moderates the relationship between stringent climate regulations in the home country and their environmental performance. Originality and contribution of the authors: our findings indicate that despite the overall trend of improving environmental performance, metallurgical MNEs with a higher proportion of foreign sales exhibit worse environmental performance hinting that they may adopt “carbon haven” logic when faced with stringent climate regulations in their home country.

Chinese FDI in Poland and the Czech Republic – inflows, determinants and challenges

Purpose: The objective of this paper is to present Chinese investment flows and the nature of participation, to analyze the differences between host countries, and to identify the determinants of Chinese FDI in Poland and the Czech Republic. Design/methodology/approach: Comparison of the specifics of Chinese direct investments in Poland and the Czech Republic. Findings: The nature of Chinese investment in Europe is changing. After years of being dominated by mergers and acquisitions, Chinese investment in Europe is now more focused on greenfield projects. In 2021, greenfield investments reached €3.3 billion, the highest ever recorded, and accounted for nearly one- third of all Chinese FDI. More recently, the volume of Chinese FDI in Europe has reached the level of European FDI in China (now constrained by restrictions and risks). It matched the level of FDI by Chinese companies in the United States before declining over the past two years, generally due to Covid-19 and the war in Ukraine. Chinese economic presence in Europe can be divided into three areas based on size, destination, and type of acquisition: The core of Europe is formed by the three major target countries (Germany, UK, France), where more capital-intensive investments are made, followed by other Western European countries (EU-15). The new member states (NMS), which joined the EU in 2004, 2007 and 2013, as well as the Western Balkan countries in the process of accession, are associated with China in the 16+1 format (with the exception of Kosovo) and form another gateway to Europe. Due to fewer market opportunities, they receive less direct investment, but China is building infrastructure (ports, highways, railroads) - segments of the Silk Road that will bring Chinese products to mature EU markets (Richtet, 2019). It is unlikely that Chinese investment in Europe will recover in 2023. The Chinese government is expected to maintain strict capital controls, financial retrenchment, and Covid-19 restrictions. The war in Ukraine and the expansion of regulations to monitor and control Chinese investments in the EU and the UK will cause additional difficulties. Originality/value: The article could be an attempt to answer the question of combining macroeconomic and institutional factors to better understand the internationalization of firms (Dunning, Lundan, 2008). There is no doubt, that the Covid-19 pandemic and the war in Ukraine made it necessary to deepen the study of the phenomenon of FDI, its inflows, determinants, and related challenges in a turbulent world. Keywords: foreign direct investments (FDI), People's Republic of China, Czech Republic, Poland, international relationships. Category of the paper: Research paper.

Perspective on Accounting Measures’ Challenges When Merging International Firms Under Contingent Considerations

Perspective on Accounting Measures’ Challenges When Merging International Firms Under Contingent Considerations

International Firm Performance and Proximity to Rare Disaster Risk

International Firm Performance and Proximity to Rare Disaster Risk

Network establishment in family firm internationalisation: a family social capital perspective

Network establishment in family firm internationalisation: a family social capital perspective

A COMPARATIVE ANALYSIS OF THE BUSINESS INTERNATIONALIZATION PROCESS: ROMANIA AND MOLDOVA

The topic of firms’ internationalization has been intensively studied over the years, representing an engaging subject for business enthusiasts from both the business environments as well as the academia. The process of internationalization is the method usually used by firms to expand their economic activity outside their country of origin, as they try to expand their market share and gain a bigger customer base. The purpose of this paper is to gain a better understanding of the evolution of firm internationalization in Romania and Moldova after the fall of communism as both countries have gone through drastic changes in order to become a market economy. This paper discusses the main business internationalization trends after the fall of the communist system.

Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization

Digital transformation has a significant impact on firm internationalization. This paper aims to provide a systematic literature review to analyze two decades of literature on key issues related to digital transformation at the individual, firm, and macro (international) levels and its impact on firms’ internationalization process. We show the impact of human (soft side) and non-human components (i.e., knowledge, leadership, digital servitization, technological) of digital transformation that can either allow or threaten it and their impact on firms’ internationalization. In addition, our findings show that digital transformation can positively and negatively impact firm internationalization at the individual, firm, and macro levels. Moreover, we review the existing theories related to digital transformation and internationalization and identify the current gaps in these theories. Finally, we provide directions for future research to address these gaps.

Evolution of globalisation and firm internationalisation under crisis conditions - the perspective of Polish exporters amidst the COVID-19 pandemic in 2020-2021

The COVID-19 pandemic triggered an economic crisis of a global nature, which – among its many consequences – had a significant impact on international economic activity carried out in various forms. Thus, the processes of globalisation, which on the one hand allow diversification of international activities of the enterprise, at the same time contribute to the transmission of economic shocks. The authors attempt to provide an initial answer to the research question of how Polish firms conducting export activities with various degrees of advancement perceive the impact of the pandemic crisis, as well as their reactions to this crisis. The article presents the results of quantitative research conducted in June 2022 among 120 Polish companies from the manufacturing sector.

Internationalization and earnings management: Evidence from China

Firm internationalization is an important strategy for enhancing competitive advantage. This study investigates the effects of internationalization on firm earnings management behavior by detecting multinational corporations’ earnings manipulation. No substitute effect of accrual earnings management and real earnings management is observed in the multinational operating enterprises’ earnings management activities. We find that internationalization increases firms’ motivation to manage accrual earnings. The higher the degree of multinational operation, the more inclined the firm is to manipulate accrual income to achieve its goals.

CEO general work experience and FDI-based internationalization

PurposeThe purpose of this study is to study the impact of the chief executive officer (CEO) general work experience on the level of firm internationalization in the form of foreign direct investment.Design/methodology/approachThe author collects and analyzes data on publicly traded US firms in the manufacturing sector from 1993 to 2012.FindingsThe author finds that CEOs with more general work experience tend to engage in a higher degree of foreign direct investment (FDI)-based internationalization. This relationship will be weakened by CEO stock ownership and enhanced by CEO Ivy League education.Originality/valueThis study enriches the understanding of the important role top managers play in internationalization decisions. The study also contributes to the literature on managerial risk-taking by exploring the outcomes of managerial risk-taking, which have been less studied than the antecedents.

Internationalization of transnational entrepreneurial firms from an advanced to emerging economy: the role of transnational mixed-embeddedness

PurposeThis study investigates the role of transnational mixed-embeddedness when transnational entrepreneurial firms (TEFs) become internationalized. First-generation immigrant entrepreneurs who maintain business arrangements in their home and host countries own TEFs. In many cases, they internationalize from emerging economies to advanced economies. Nevertheless, this study focuses on TEF cases that internationalize from an advanced to an emerging economy, which prior transnational entrepreneurship studies have largely overlooked.Design/methodology/approachThis research uses a qualitative approach based on six TEF case studies from Canada and the UK venturing into China to explore TEFs' internationalization.FindingsThe case studies explore the elements that constitute TEFs' cognitive and relational embeddedness—two main types of embeddedness—in home and host countries and how TEFs exploit such embeddedness for their internationalization. The results suggest that high levels of transnational mixed-embeddedness help TEFs reduce resource and institutional distance barriers in home countries, thereby assisting their internationalization. A framework that visualizes the role of transnational mixed-embeddedness in TEFs' internationalization and novel categorizations of transnational mixed-embeddedness is proposed.Originality/valueAlthough there has been a growing demand for research on the emergence of internationalized smaller firms, there have been few empirical efforts on TEFs' internationalization. It is still unclear how TEFs internationalize differently than homegrown entrepreneurial firms. This study fills this gap in transnational entrepreneurship literature by examining the influence of transnational mixed-embeddedness on TEFs' internationalization.

More policy is not always effective policy: How policy coherence affects firm internationalization

This paper aims to contribute to our understanding of the effects of home country policy change on the internationalization of EMNEs. Our analysis is based on a unique data set of Chinese outward FDI policies in 1979–2019 that enables us to examine policy coherence in three dimensions: signal ambiguity, instrument expansion, and scope expansion. By analyzing Chinese POEs between 2012 and 2018, we find that more ambiguous policy signals reduce the likelihood of cross-border M&As. Furthermore, we find that the expansion of policy instruments and policy scope also negatively affect internationalization. These effects become weaker over time, and a smaller sample of SOEs shows no susceptibility to instrument and scope expansion. We conclude that while the content of policy is essential, the coherence of the policy process can have an impact that may overwhelm the positive effects of policies if the firms lack policy awareness, or the implementation exceeds their short-term capacity to adjust. Thus, more policy is not always more effective policy. Availability of data and materialYes, in a repository (Utesch-Xiong, F., 2021. Chinese Outward Foreign Direct Investment Policies, 1979–2020, Harvardvese, https://doi.org/10.7910/DVN/ZJOTUN)

Does political stability contribute to environmental sustainability? Evidence from the most politically stable economies

The study evaluates the effect of political risk on CO2 emission in the top 10 most politically stable economies (Australia, Canada, Germany, Finland, Denmark, Norway, Netherlands, New Zealand, Sweden, and Switzerland) from 1991/Q1 and 2019/Q4. To the investigators' understanding, this is the first empirical analysis that inspects the effect of political risk on CO2 emissions in the top 10 most politically stable economies. Therefore, the current paper fills a gap in the existing literature. Innovative quantile-on-quantile regression and quantile causality approaches are applied to explore this nexus. The quantile-on-quantile regression results reveal that in the majority of the quantiles, political risk enhances environmental quality for the case of Norway, Sweden, Canada, and Switzerland. Moreover, political risk degrades the quality of the environment in Australia, Germany, and Denmark, while the outcomes were mixed for the rest. Since political stability has encouraged international corporations to invest. As a result, guaranteeing political stability will attract more foreign investment, pressuring the governments of these countries to treat the climate catastrophe more urgently. Moreover, reforms should be aimed at sustaining existing environmental policies related to the green economy, while local and international firms should vigorously pursue investments in renewable energy sources and energy-saving-efficient technologies.

Digital Internationalization of Traditional Firms: Virtual Presence and Entrepreneurial Orientation

While digital technologies like the internet offer new and less cost-intensive ways to seize international opportunities, when it comes to traditional firms selling tangible products, little is known about their use of online channels for servicing foreign markets. This is especially the case for their choice between customized (active) or general (default) forms of corporate internationalization websites (viz. virtual presence modes). Building on the entrepreneurial orientation literature, we propose that firms that are more entrepreneurially orientated are more likely to capture internationalization opportunities with active internationalization websites. We further suggest that the threat of competitive pre-emption will moderate this relationship. Using a sample of Austrian SME exporters, we find support for the positive effect of entrepreneurial orientation on the use of active internationalization websites, but do not find a significant moderating effect of competitive pre-emption. In this way, we add to the growing research on digital internationalization by explaining the circumstances in which traditional firms choose between different internationalization website formats.

Liability of ecosystem integration and internationalisation of digital firms

The widespread emergence of digital firms has important implications for international business theory. In this paper, we argue that because of systematic cross-industry differences in the local ecosystems digital firms need to develop in foreign markets, they will face differential costs and challenges of what we term liability of ecosystem integration (LoEI). The nature of the LoEI differs from both traditional concepts of the liability of foreignness (LoF) and the liability of outsidership (LoO). Rather than reflecting the need to overcome economic or psychic distance by learning about the host country (as with LoF) or investing in relationship-specific knowledge (as with LoO), overcoming LoEI requires investments in catalysing the co-development of a local ecosystem involving users, complementors and institutional actors specific to each business. We show how the level of LoEI a firm faces depends on the characteristics of its industry and its business model along three dimensions: the level of integration with local users, complementors, and institutions. These characteristics impact both firm's success in internationalisation and the level of concentration in the global market.

Impacts of Firm Internationalization, Green Procurement and Organizational Performance of University College Hospital, Ibadan, Nigeria

The procurement system invariably suffers various forms of malpractices and unethical conduct which includes a high incidence of vested interest, contract inflation, delay in suppliers’ payment, and increased procurement cycle. The review explored impacts of firm internationalization, green procurement and organizational performance of University College Hospital (UCH), Ibadan. Theory considered for this study is the agency theory. Descriptive and survey design was embraced for the review. The populace in the review contained 158. A stratified sampling technique was used and the strata’s are procurement, stores, payment units (Account), and the different end user’s department. An organized poll was directed. The instrument was approved, and the information assembled was broken down utilizing mean standard deviation, and correlation analysis. Out of the 158 polls directed, 136 were recovered (86% reaction rate). The review discovered that green procurement (mean worth 4.3145), negotiation management (mean worth 4.2581), competitive bidding (mean worth 4.2581) and its correlation co-efficient: (green procurement 0.214, negotiation management 0.737, competitive bidding 0.230) was found to have a positive and significant effect on organizational performance of UCH, Ibadan. The study subsequently inferred that green procurement did not lead to client’s satisfaction. However, green procurement leads to an increase in service quality, product quality, source reduction and waste management. Based on the findings, it is therefore recommended that more financial resources should be made available for the acquisition of substitute products and public awareness on the need to conserve the environment through green procurement.

Platform-Based Internationalization of Smaller Firms: The Role of Government Policy

Governments are recognizing anticompetitive concerns and market distortions associated with the rise of e-commerce platforms. Thus, policies are being crafted to level the playing field between large platform operators and small platform sellers. In addition, policies mitigating barriers to internationalization associated with using e-commerce platforms are also being developed. This study aims to explore these policy actions impacting the platform-based internationalization of small and micro enterprises (SMEs). The case study method is adopted to provide rich insights into the Indian Government policy actions impacting the e-commerce platform-based internationalization of Indian SMEs. More specifically, this investigation analyzes the extent to which the Indian Government policy actions have mitigated the home market and industry-level barriers to export for SMEs leveraging e-commerce platforms for their internationalization efforts. Study findings provide rich policy implications and fodder for future empirical testing of key qualitative insights uncovered in this study.