Internationalization Path Research Articles

Financial internationalization of emerging country multinationals: evidence from India

PurposeFinancial internationalization is of particular importance to emerging country firms. Its significance arises from the impact of institutional void and related agency problems (common to emerging markets) on the internationalization path of these firms. Building on concepts from international finance, agency theory and institutional theory, this paper aims to examine the main aspects of financial internationalization by emerging country multinationals, namely, cross-listing, foreign ownership and foreign independent directors.Design/methodology/approachThis paper follows a multiple case study approach which is a good fit for the exploratory nature of this research. The interest is to examine the context-driven financial internationalization of each case firm and replicate the firm-level information to find a common strategy.FindingsThe findings suggest that financial internationalization by emerging country multinationals starts mainly as these firms plan to enter advanced country markets. It is a dynamic process that entails interaction between financial internationalization and real internationalization, as well as among different aspects of financial internationalization. Cross-listing comprises the first stage of the process. Then, foreign ownership, particularly foreign institutional investments, would increase gradually in response to advances in financial and factor markets. Recruiting foreign independent directors seems to be adopted last, possibly out of fear of losing control of strategic decisions.Originality/valueThis paper presents a unique perspective that delineates different stages of the process of financial internationalization by emerging country multinationals. This complements the efforts to explain the distinct path of internationalization followed by these firms and supplements scarce literature by including emerging multinationals from India where the matter has not yet attracted proper attention.

Research on impulse response and variance decomposition analysis of co-integrated systems

The cointegration test explores whether a relationship of long-term equilibrium exists between the multi-dimensional series. It helps to exclude the possibility of spurious regression. As for the vector auto-regressive (VAR) model, it describes the interrelationship between endogenous variables. With impulse response and variance decomposition, the VAR model can further capture the dynamic response path of the dependent variable after being impacted by other variables, and the contribution rates of different variables to the impulse response of the dependent variable. In this paper, impulse response and variance decomposition analysis of cointegrated systems are adopted based on the VAR model to evaluate measurable data of RMB internationalization. The framework consists of four steps. First, the long-term equilibrium between variables after confirming the existence of cointegration relationship is explored. Second, the VAR model is adopted to consider the endogeneity between variables. Then, through the impulse response function, the dynamic response path of the system impacted by unit impulse is observed. Finally, combined with variance decomposition, further analysis is taken to realize the contribution rates of variables to the impulse. The results show that foreign influencement has the greatest impact on RMB internationalization, followed by foreign exchange reserves. However, the corresponding paths of RMB internationalization still requires to be adjusted.

Trade decomposition of CO2 emissions of global construction industries

PurposeThis paper aims to clarify the CO2 emissions of global construction industries under the consideration of different patterns of international trade and thus to draw a comprehensive picture for understanding the international paths of CO2 transfer to global construction industries.Design/methodology/approachThis research inventories the CO2 emissions induced by the final demand of 15 economies for construction products and explores the CO2 intensities of these economies based on a multi-regional input–output model. This paper further decomposes CO2 emissions into four components based on different patterns of international trade to estimate the roles of four patterns of international trade in shaping the environmental pressures from global construction industries.FindingsThe results indicate that the CO2 intensities of the construction industries in Russia, India and China were higher than those in other economies, and the CO2 intensities of global construction industries experienced a decline over the years 2000–2014. The decomposition analysis demonstrates that domestic and foreign CO2 emissions accounted for 42.67 and 54.23%, respectively, of the CO2 emissions of the construction industries in the 15 economies during the period 2000–2007. Although the major part of the CO2 emissions of the construction industries come from domestic production systems, the final demand for construction products in the 15 economies caused substantial emissions in other economies. Further decomposition by upstream industrial production source indicates that 58.65% of domestic emissions and 66.53% of foreign emissions can be traced back to the electricity industry.Research limitations/implicationsAlthough the major patterns of CO2 emissions of the construction industry have been identified in this paper, the difficulty of understanding the relationship between upstream production industries or countries and the construction industry deserves more attention in the future research.Originality/valuePrevious research on inventorying CO2 emissions has generally been limited to evaluating the impact of industrial consumption activities on national or global emission accounting, tending to ignore the effects of different international trade patterns on the change in industrial CO2 emissions. This research is the first attempt to account for and decompose the CO2 emissions of global construction industries under consideration of the effects of different patterns of international trade on environmental pressures. The decomposition and upstream industrial distributions of different patterns of CO2 emission provide a comprehensive picture for better understanding of the emission pattern and source of the CO2 emissions of global construction industries. The research outcomes reveal how the final demand of a country for construction products induces CO2 emissions in both domestic and foreign systems, thus providing basic information and references for policy adjustment and strategy design in relation to mitigation of climate change and sustainable development.

ГРАВИТАЦИОННОЕ РАВЕНСТВО КАК БАЗИС АЛГОРИТМА ЭКОНОМИЧЕСКОГО РАЗВИТИЯ ГОСУДАРСТВА В УСЛОВИЯХ ПОСТРОЕНИЯ НЕЗАВИСИМОЙ СБАЛАНСИРОВАННОЙ ЭКОНОМИЧЕСКОЙ ПОЛИТИКИ

This article presents an algorithm of economic development of state, focused on finding the optimal direction of foreign economic activity in the context of ensuring economic security of region. The developed mechanism makes it possible to take into account the gravitational affiliation of states on the basis of the created integral indicator of the strength of economic gravity. Based on a theoretical assessment of the variability of the paths of economic development, a conclusion is made about the effectiveness of bilateralism in the context of global economic instability. In the process of building macroeconomic policy, the state assesses the bilateral and multilateral aspects of economic activity. The multifactorial nature of economic activity forms the multitasking of country's economic development. Accordingly, solving economic problems requires a systematic approach. The main stages of the algorithm for choosing the path of economic development of the state: 1. Choosing a direction of economy optimization. 2. Assessment of the foreign policy position of the state, on the basis of which the choice of bilateral or international path is made. 3. Evaluation of bilateral optimization in accordance with the state of the economy. Bilateral optimization is carried out depending on the economic gravity of states, which determines the type of interaction of elements. When assessing the current level of bilateral economic relations and the formation of prospects for cooperation, it is necessary to use the index of economic gravity of countries, which takes into account a level of trade gravity of countries, an indicator of distance dependence between countries, a measure of political calm and an indicator of monetary and financial proximity of countries. The developed mechanism of economic actions of the state provides for the existence of an economic and political choice of the vector of economic development, taking into account the state national strategy. Reflecting systemic inversely proportional relationship between the rate of economic growth and country's economic sovereignty, the algorithm is focused on overcoming systemic interstate imbalances in the world economy.

Heterogeneity and the Choice of Internationalization Path of Chinese Enterprises

Since the reform and opening up, China's economy has been further integrated with the world economy. Especially in the past two decades, China's foreign trade and foreign direct investment have maintained a rapid growth. More and more Chinese enterprises are actively choosing to participate in international competition. During this process, some Chinese companies have achieved great success in overseas investment, Therefore, what kind of Chinese enterprises are suitable for "going out", how to choose the optimal mode of overseas investment, and what kind of enterprises are suitable for overseas investment mode have become the urgent problems for Chinese enterprises in order to successfully realize overseas expansion. Under the concept of the enterprise heterogeneity, this paper tries to answer the above questions by analyzing the facts of current internationalization path choice of Chinese enterprises, and provides relevant suggestions on how to correctly choose the internationalization modes for Chinese enterprises.

Internationalization processes for sub‐Saharan Africa's small and medium‐sized enterprises: The case of Ivory Coast

AbstractThe aim of this research is to characterize the main internationalization paths of African small and medium‐sized enterprises (SMEs) particularly Ivorian ones. From our results analysis, it appears that the internationalization strategies of African SMEs are specific and adapted to their environments and characteristics. For example, it is important that Ivorian SMEs' managers take into account the national culture and the characteristics of the host market (situation of significant need, market saturation, protectionism) during their international approaches. In addition, we find out that most Ivorian SMEs adopt upstream (import) and downstream (export) internationalization with import as the first mode of entry into foreign markets. Finally, we observe that it is essential that African governments recognize the potential of international SMEs for economic development by introducing support programs. Otherwise, African SMEs would not be able to compete globally and grow.

The role of international experience in speed of entry: Empirical evidence from Chinese innovative firms

By analyzing the dynamic path of internationalization, this study attempts to explain the entry mode choice, location choice, and speed of entry in the process of internationalization from the learning results obtained from previous international activities. Our research shows that the speed of the entry process depends on the type of experiential learning generated by the implicit decision-making in the process of Internationalization: the entry mode choice and the market location choice. We find that the experience accumulated in the host country has an inverted U-shaped effect on the speed of entry; while the experience accumulated of the entry mode has a U-shaped impact on the speed of entry. We perform an event history analyses(EHA) on 153 Chinese innovative firms with 905 OFDI observations during the period from 1991 to 2015, and analysis what and why is the paths of internationalization of Chinese firms. We find that Chinese innovative MNEs have more likelihood to choice the entry mode of acquisition and WOS than other entry modes in OFDI activity, and there is a higher probability that the Chinese innovative MNEs choice the market location of developed countries than developing countries in OFDI activity. Most importantly, we find that accumulated experience in host country has an inverted U-shaped impact on the speed of internationalization operation with acquisition mode and the speed of internationalization in developed countries; while accumulated experience in focal entry mode has an U-shaped impect on the speed of internationalization operation with branch or WOS mode and the speed of internationalization in developing countries. This claim is supported by both non-parametric and parametric tests in the EHA. Our research highlights the short-term and long-term consequences of different types of paths associated with the internationalization process.

Study on the international tourism development path of Liangzhu Ancient City Ruins Park

The successful application of the Liangzhu Ancient City Site as a World Heritage Site indicates that five thousand years of Chinese civilization has been widely recognized internationally. In the post-world heritage era, Liangzhu Ancient City Ruins Park should take the development of tourism as an important way to protect and inherit Liangzhu culture. On this basis, this article explores the path for the international tourism development of Liangzhu Ancient City Ruins Park, mainly discussing the path from the aspects of creating Liangzhu cultural IP, Internationalization of tourism marketing, Internationalization of tourism service, Internationalization of tourism products, Internationalization of heritage protection. The specific path of the international tourism development provides ideas for protecting the world cultural heritage of Liangzhu Ancient City Ruins Park and increasing world visibility and influences.

Research on Development Path of Internationalization of Teachers in Higher Vocational Colleges from the Perspective of "Double High-level Plan"

The construction of "double high-level plan" puts forward new requirements for internationalization of higher vocational colleges, and internationalization level of teachers is an important guarantee for internationalization of higher vocational colleges. This paper analyzes current research status quo and existing problems of internationalization of teachers in higher vocational colleges, including weak sense of internationalization, lack of systematicness in internationalization of teachers, undiversified approach to internationalization of teachers and lack of incentive mechanism for internationalization of teachers, and puts forward development paths of internationalization of teachers in higher vocational colleges from the perspective of "double high-level plan": deeply understanding importance of internationalization of higher vocational teachers, establishing a correct concept of internationalization of higher vocational teachers, establishing a mechanism for internationalization of teachers, improving internationalization ability of teachers in higher vocational colleges through multiple channels and establishing internationalization incentive mechanism.

The role of internationalization in enhancing the innovation performance of Chinese EMNEs: A geographic relational approach

Abstract In attempting to integrate theory on developed and emerging countries, prior research has focused on the antecedents of specific internationalization decisions of Emerging Multinational Enterprises (EMNEs) rather than conceptualizing internationalization as a recurring process. This approach limits the understanding of the ways through which different internationalization paths lead to different performance outcomes. Using a geographic relational approach and a portfolio-level analysis, we demonstrate that the ability of Chinese EMNEs to increase innovation performance is driven by how and where they choose to internationalize over time. Our framework resolves these two strategic choices into six dimensions; namely, entry mode, geographic breadth and depth, cultural and institutional distance, and the economic state of the host country. Accordingly, it explains the geographic relational mechanisms through which these six dimensions influence the benefits and challenges of internationalization and, in turn, innovation performance. Results show that Chinese EMNEs improve their innovation performance where they have a portfolio of subsidiaries that (1) is built through M&As (rather than greenfield investments), (2) is distributed across multiple countries (rather than located in fewer locations), (3) is distant from home in terms of culture (but not in terms of institutions), and (4) is located in emerging (rather than developed) countries, although M&As perform better in developed countries.

Internationalisation path heterogeneity and growth for international new ventures

An increasing number of new venture firms are internationalising their business operations early in their lifecycles to achieve superior performance. Taking the perspective of dynamic capability theory, our study sheds light on the effect that heterogeneity in experiential learning has on international new venture (INV) growth in terms of a curvilinear relationship. Specifically, we introduce the concept of internationalisation path heterogeneity to capture the path-specific features of INV experiential learning and capability building and explore the relationship between internationalisation path heterogeneity and INV firm growth. We also argue that this relationship will be moderated by environmental munificence because the cost and benefit of path heterogeneity is bounded. We test the hypotheses based on empirical analysis of a longitudinal dataset of 1054 INVs from 58 countries. Overall, this study provides a dynamic and fine-grained view of the role played by internationalisation path heterogeneity in driving the growth of INVs.

Research on the Path of Internationalization of Higher Vocational Education Based on Computer Aided Technology under the Background of One Belt One Road

The internationalization of higher vocational education has become an important trend in the development of vocational education, which is an important indicator of the construction of “double first-class” higher vocational education. The introduction and implementation of the “one belt and one way” national strategy has provided a direction for China’s higher vocational education, which has brought tremendous opportunities and challenges to the internationalization of education. This paper uses computer-aided technology to first analyze the significance of internationalization of higher vocational education. Then, this paper puts forward some questions. Finally, some suggestions are put forward.

Understanding the Internationalization Process of Family Firms: A Multi-Case Study

Whereas family firm research is becoming increasingly mature, research on family firm internationalization management processes and the influences of the family on their international orientation remains under-researched. This lack of research is surprising because insights on the international orientation and the behaviors of the family might help explain why some firms (operating in their global niche or not) follow international paths despite potential resource constraints, limited market knowledge, and an aversion to lose control over their firm. Therefore, we provide new insights on the internationalization of family firms based on a qualitative multi-case study. We find that despite the experienced market pressures to internationalize, a family’s motivation, goals, and governance situationally deviates from the rather objective need to opt for a more global growth. First, the internationalization initiative undertaken follows a motivation resulting on emotions and a trust-based relationship with the respective responsible person that internationalizes, serving as the initiator. Second, the motivation to penetrate a new market resides on the pressures by loyal and long-standing customers. Third, the interviewed family firms all follow a product quality-based strategy, without including the market position within their goals. Thus, a firm with highest product quality standards seems to lead towards (niche) market leadership. Forth, despite the family firm constraints and limits, the firms do not possess a fully developed governance structure due to a lack of formulated quantitative and measurable goals.

Estructura Sectorial y Productividad de la Economía Española

En este trabajo se analiza la evolución reciente de la economía española que, tras una fase de expansión en la que había logrado un importante avance en la convergencia de bienestar con otros países europeos y con Estados Unidos, sufre el impacto de la Gran Recesión. En primer lugar, el estudio se centra en la estructura productiva de la economía española durante los años 2000 a 2015, caracterizando el modelo productivo español y analizando la contribución de los grandes sectores productivos al crecimiento económico. A continuación, el trabajo se focaliza en la productividad del trabajo en España y se contextualiza en el ámbito internacional. Los resultados señalan que la senda de convergencia internacional de la economía española se debe, fundamentalmente, a la evolución de su población ocupada.

Petróleo brasilero S.A.: una empresa estatal brasileña internacionalizada

Petróleo Brasileiro S.A. (Petrobras) es la mayor empresa estatal brasileña y tiene una sólida trayectoria de internacionalización. El objetivo de este artículo es entender cómo la empresa creció en el mercado interno y, bajo el amparo de las teorías de internacionalización de la firma, comprender cómo fue su avance en el mercado internacional. Inicialmente, el texto rescata el origen y el desarrollo de la empresa. Luego, verifica cómo comenzó y se expandió su internacionalización para tres grandes áreas geográficas (América, Eurasia y África), en un contexto de disputa global por el petróleo a través de concesiones de explotación, procesos de refinamiento y distribución. Como conclusión previa se puede afirmar que su principal fuente de ingresos continúa siendo el mercado brasileño, pero la inserción en los mercados internacionales ha crecido, ya sea en valores absolutos como en términos de sofisticación de actividades, pasando de una empresa que buscaba insumos para una nueva fase a la venta de productos finales y tecnología de explotación en aguas profundas y ultra profundas.

Multilingual education in Central Asian institutions of higher education

Central Asian countries include Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan, all of which are multi-ethnic and multi-lingual countries with unique multicultural spaces. After independence, the Central Asian countries along the «Belt and Road» are fully aware of the importance of education in the development of the national economy. Therefore, the internationalization of higher education is always given priority in the education development. In the context of internationalization, the choice of language education and educational language has become an important factor affecting the quality of higher education. At present, apart from Turkmenistan, the governments of Central Asian countries have proposed a multilingual development strategy for their national conditions, trying to break the deadlock of economic and social development through multilingual policies so that they can integrate with the world, and step into the international development path. The key to implementing multilingual policies and carrying on the related language and culture projects is in the correct and effective multilingual education. The development of multilingual education in Central Asian universities has constituted a unique landscape for higher education in Central Asia. It is characterized by the integration of multilingual education policy into national language and education strategies, the intervention from Europe, US and Russia, the phased planning, the equal attention to both native and foreign languages and language as the educational medium. Meanwhile, there exist some problems, including strong politicization, insufficient teachers, teaching materials and educational fund, as well as the difficulties in the development of native languages.

From the Economic Union to the Harmonisation of Higher Education in the BRICS Countries: The Experience of RUDN University

Since 2009 when Brazil, Russia, India, and China (South Africa since 2011) joined in the international organisation aimed at the economic development of the countries, and gain financial stability, the relations between the countries too boosted via political and cultural cooperation. The new economic, political and social environment has a high demand for competent specialists ready to work in various national agendas and interrelated frameworks of the BRICS. In this context, it is argued that professional training in the countries under discussion should be correlated as it provides grounds for quality assurance in education that contributes to the nations’ sustainable development, safety, and human rights provision. This situation determines the topicality of the issue. The objective of this research is to study the higher educational environment in the BRICS countries and to compare some aspects of professional training. In doing so, the study aims to present the experience of RUDN University as one of the BRICS university network members. The hypothesis states that the harmonisation of higher education systems within regional organisations can contribute to the enhancement of both international standards and individual learning paths, thus fostering youth rights for education in line with quality standards and individual preferences. To accomplish the objectives of the study, it uses the following methods - the review of the current research, formal document and online resources on higher education in the BRICS countries; the survey of the undergraduates, graduates, and postgraduates on their motivation to academic mobility, and collaboration in the frameworks of BRICS higher education. The data has been analysed employing the methods of statistical processing, qualitative and quantitative methods. The findings of the current research include the outcomes and findings on the harmonisation of higher education in the frameworks of BRICS higher education. The study will contribute to further development of BRICS countries education and the harmonisation of higher education.

Polish+. Program nowych studiów polskich na Uniwersytecie Syczuańskim w Chengdu.

The fi rst university programme in Polish studies in China was launched already in the 1950s. The foundations laid by a few generations of specialists in Polish studies from Beijing Foreign Studies University permit the development of successive programmes in Polish studies in other Chinese academic centres. They use the support of the PRC government, which has been implementing a dynamic foreign policy addressed to the Central and Eastern European countries for a few years now. One of the new centres offering innovative programmes in Polish studies, which are combined with the economic and international path, is the Sichuan University in Chengdu, supported by the University of Warsaw. This paper describes the formation of the Polish+ programme in Chengdu and presents the details related to the curriculum of the studies, which inspires other Chinese higher education institutions to introduce similar specialties in cooperation with the greatest Polish higher education institutions.

The Paths of Internationalization of Chinese Innovative Firms

Innovative enterprises from emerging markets, such as China, are a group of understudied enterprises, which could generate new and important views on internationalization. Some unique characteristics of Chinese innovative enterprises are creating new ideas that help to a better understanding of entry mode choice, market location choice, and entry speed in the paths of internationalization. Drawing on an unbalanced panel of Chinese innovative enterprises’ outward foreign direct investment (OFDI) event data, we analyzed the tendency of the paths of internationalization of Chinese innovative enterprises and the determining factors that influence the Chinese innovative enterprises’ choice in entry mode, market location, and entry speed. The results show that: (1) Chinese innovative enterprises are more likely to choose developing countries than developed countries. (2) When these firms conduct investment activities in developed countries, the probability rank (from high to low) of entry mode choice is acquisition, along with the wholly-owned subsidiary, exporting and joint venture. When these firms expand the business in developing countries, the entry mode of export is most likely to be chosen and the acquisition is least likely to be chosen. (3) This tendency and paths choice of internationalization in entry mode, market location and entry speed are influenced by the international experience, the multidimensional proximity, psychic distance, internationalization motivation, ownership structure, and innovation ability. Finally, we discuss these contributions and make some suggestions for future research.

Learning from the National Manufacturing Industrial System

The recent wave of rising protectionism and re-internationalization of capital poses a significant challenge to national industrial system that structures the network and governance firms. This work aims to analyze the global commercial network of the Italian manufacturing industry under the lenses of the network analysis, describing its peculiarities and the development and internationalization paths of its international branches. The originality of the work is also that improving the ability to analyze and manage information extracted from unstructured data (stemming from notes to the firm financial statements). An adjacency matrix created on BvD-Orbis (Bureau van Dijk Electronic Publishing) flagship company database. It contains information about over 12.000 large Italian companies and belonging to one or more of 17.000 different branches in 2017. In this way it was possible to understand the evolving dynamics of the sales network of the Italian branches. The results confirm that the manufacturing industry represents a significant challenge for the design of industrial policy for the national industrial system, highlighting that the structural changes in global production have aroused renewed interest in the role of this sector in promoting economic development and policy. Following this perspective, we demonstrate the relationship between the network of countries shared by Italian companies and we highlight the fundamental characteristics in the structure of intersectoral connections.