Rapid Internationalization Research Articles

Relational assets, environmental uncertainty and internationalization speed of Chinese multinational enterprises

PurposeHow to support the rapid internationalization of multinational enterprises (MNEs) is a hot topic in academia and industry. The main purpose of this work is to study the role of relational assets (R-assets) in promoting the speed of internationalization of MNEs, and to explore the moderating effect of environmental uncertainty (institutional environment and industry environment) on the relationship between R-assets and internationalization speed of MNEs.Design/methodology/approachThis study uses the outward foreign investment data of China’s A-share listed enterprises from 2009 to 2021, and employs the Cox proportional hazards model to empirically test the research hypothesis.FindingsThe empirical results revealed that R-assets can promote enterprise internationalization speed. In addition, the study also finds that the institutional uncertainty of host countries weakens the promotion effect of R-assets on internationalization speed of MNEs, while the industry uncertainty strengthens the promotion effect of those. Heterogeneity analysis illustrates that, compared with state-owned enterprises, non-state-owned enterprises have a more significant effect on the above conclusions.Originality/valueThis study enriches the literature on internationalization speed of MNEs by focusing on the determinants of internationalization speed through R-assets. From the perspective of knowledge, the work also provides a theoretical reference whereby MNEs can use host country R-assets to accelerate knowledge acquisition and then internationalization practice. In conclusion, this study provides valuable insights for managers aiming to develop effective strategies through R-assets to achieve rapid internationalization, contributing to an emerging literature stream on catch-up for emerging-market MNEs.

Rapid internationalisation in the virtual world: a configurational examination of mobile apps

ABSTRACT Mobile applications are able to reach multiple markets instantaneously and simultaneously in cyberspace, with varying performances over time. The purpose of this study is to advance our understanding of this process and the internationalisation patterns in the virtual world. Based on the diffusion of innovation theory (DOI), we have developed a configurational model that relates the three elements of the diffusion process – innovation, communication channels, and social systems – to the speed of dispersion across multiple markets (breadth) at different adoption rates (depth) and over different periods (timespan). A fuzzy set qualitative comparative analysis (fsQCA) is conducted on a sample of 70 mobile games, which indicates that these elements have interdependent effects on rapid international expansion and play different roles in deeper and longer-term diffusion. It also demonstrates that rapid internationalisation in the virtual world benefits from communication and influence among users. This study contributes to the internationalisation speed literature by employing a demand-side perspective in the virtual world. It also contributes to the DOI literature by exploring the interdependent relationships among different elements of the diffusion process.

International entrepreneurial culture as a booster of early and rapid internationalisation: A comparative study of Born Globals vs non-Born Globals

AbstractThe literature demonstrates how Born Globals (BGs) make recourse to distinctive strategic intangible assets to accelerate their internationalisation processes while, nevertheless, broadly neglecting the role of International Entrepreneurial Culture (IEC) in generating and differentiating BGs despite its relevant role. This study examines the IEC as a driver of the early and rapid internationalisation of BGs and correspondingly seeks to capture the prevailing differences compared to non-Born Globals (non-BGs).Thus, we empirically tested and validated an IEC scale for a sample of 66 BGs and 102 non-BGs and deployed multivariate analysis techniques to identify the main differences among company profiles. The results reveal how BGs stand out from their peers in terms of autonomy (a dimension of the international entrepreneurial orientation (IEO)), international motivation, and international market orientation. Therefore, concentrating on developing these dimensions may return an effective means of boosting rapid and early internationalisation and thereby stand out from the competition. The remaining IEO dimensions, the international learning orientation and the international networking orientation were not relevant to this differentiating process.This research has important theoretical and practical implications, encouraging and guiding BG managers to adopt a strategic posture emphasising some particular IEC dimensions to differentiate themselves from their competitors and succeed in their early international involvement.

Building capacity and status through transnational joint doctoral programs: a case study in China

PurposeThrough a case study of a recently established but rapidly growing research-intensive university in China, this study explores how transnational joint doctoral programs are strategically instrumentalized to overcome policy restrictions on postgraduate degree accreditation. It utilizes the cumulative (dis)advantage theory as the analytical lens. This study investigates the innovative, bottom-up initiation of transnational higher education tailored to the development goals of the university and this region, thus providing an alternative perspective for the dominant top-down discourse on transnational higher education research in China.Design/methodology/approachThis study employs a qualitative case study design that incorporates semi-structured interviews and document analysis to investigate the examined university’s joint doctoral programs.FindingsThe study examines how, through its transnational joint doctoral programs, the case university actively accumulated the advantages of recruiting excellent research students, cultivating the public’s confidence and deepening international collaboration. These advantages created a virtuous circle, which further reinforced each other and accelerated the university’s development. The disadvantages include power disparities between the case university and its partners, students’ study discontinuity because of temporal and spatial division and the challenges of co-supervision. Accordingly, the university implemented counterstrategies such as adopting a differentiated stance with varying partners, offering flexible administrative and management supports and aligning differently with various supervisors’ collaboration styles.Originality/valueThis study presents innovative institutional strategies in the Greater Bay Area of China to pursue rapid development and internationalization through transnational higher education programs. It also strives to illuminate the significant role of transnational higher education in facilitating experimental governance with Chinese characteristics.

Post-entry internationalization of born globals: The role of dynamic capabilities in accelerating growth

Academics and policymakers worldwide recognize the importance of born globals (BGs) and actively promote rapid internationalization. Despite this, our knowledge of the post-entry behavior of BGs is limited. We address this problem by investigating the dynamic capabilities that accelerate the post-entry international growth of BGs. Drawing on in-depth interviews with Chinese BG managers, this study reveals the dynamic capabilities that substantiate three key dimensions of international growth: spread, diversification, and sales intensity. Furthermore, we disclose the managerial and organizational capabilities that underpin the sensing and seizing of international opportunities as well as the reconfiguration of the resource base. We contribute to the BG literature and the dynamic capabilities perspective.

The influence of network transitions within the life cycle stages of born global companies

AbstractThis research had the objective to analyze the influence of network transitions within the life cycle stages of Born Globals (BGs). By developing a framework that consisted of a pre‐inception phase, start‐up phase, and growth phase, the study proposed to identify which networks were used and which knowledge was acquired within the development of the BGs, in order to analyze the network transitions that influenced its international expansion. By conducting in‐depth interviews, the data was collected for the analysis of a comparative case study. Our empirical findings indicate that in the pre‐inception phase, technological knowledge from institutional and business networks was pivotal to acquiring internal development making it possible for the companies to progress to the inception phase. Furthermore, international marketing knowledge acquired through business networks contributed to the transition from the inception phase to the growth phase as well as its internationalization. The results imply that high‐tech entrepreneurs should consider developing business and institutional networks as an efficient mean for firm development and rapid internationalization.

How does rapid internationalization explain emerging-market multinationals' innovation? The moderating role of organizational capacity

PurposeThe purpose of this study is to investigate the impact of rapid internationalization by emerging-market multinational enterprises (EMNEs) on their innovation performance. It also seeks to identify any potential moderating factors that could influence this relationship.Design/methodology/approachBy analyzing data from listed Chinese MNEs from 2012 to 2022, this study applies a negative binomial regression model to test the research hypotheses.FindingsThis study uncovers an inverted U-shaped relationship between the internationalization speed of EMNEs and their innovation performance. It also suggests that strong absorptive, learning and managerial capacities could play positive moderating roles in the effect of internationalization speed on EMNEs’ innovation performance.Originality/valueThis study highlights rapid global expansion, promoting new knowledge acquisition for EMNEs. However, due to time-compression dilemmas with limited EMNE firm-specific advantages, overly accelerated internationalization hinders learning effectiveness. Additionally, this study reveals the critical importance of three firm-specific capacities in EMNEs – absorptive, learning and managerial capacities – in efficiently assimilating newly acquired knowledge from foreign markets and enhancing their innovation performance through rapid internationalization.

Digital entrepreneur’s platformication and rapid internationalization through brokering, making and giving sense

ABSTRACT In the realm of entrepreneurship and rapid international growth, the influence of digital technologies is profound. The sustained growth of Born Digital firms hinges on intricate relational and network dynamics, particularly within the context of digital platforms. This longitudinal empirical research focuses on case firms immersed in project-based activities centered around health apps. Navigating the complex landscape of digital innovation, these firms must strategically engage with established and emerging digital platform networks. To ensure the continual expansion of their digital platforms, digital entrepreneurs are compelled to exhibit a vision advantage and employ effective sensegiving within their network. The empirical findings underscore the necessity for these firms to adopt multiple dynamic strategies, characterized by rhetorical brokerage, to augment their networks for innovation and internationalization. This necessitates an entrepreneurial approach termed ‘platformication,’ which encapsulates the actions undertaken in the digital platform space. This study contributes with research and implications of platformication.

Діджиталізація як чинник швидкої інтернаціоналізації стартапів

The article defines the essence of the concept of "global startups", and examines the factors influencing their emergence and rapid spread in the global economy. The size of the local market, the state of development of the national innovation ecosystem, the number and availability of re-sources, the level of competition in the domestic market, state protection of intellectual property rights and technologies, etc. The authors summarized the approaches to interpreting the essence of the internationaliza-tion and digitalization processes and investigated their impact on global startup entrepreneurship. It was found that the connection between digitalization and the internationalization of startups is sig-nificant, as entrepreneurs increasingly use information and communication technologies in their dai-ly activities to analyze national and international market information, sell products or services, or contact potential customers, suppliers, or strategic customers and partners. Digitalization refers to the use of digital infrastructure, the Internet as a medium for selling products and services and cre-ating value for customers. Attention is focused on the importance of digitalization for the early internationalization of startups. Systematized key factors of the internationalization of start-up firms: institutional envi-ronment of the home and host country, industry and market conditions of the country of origin and host country, state of development of formal and informal institutions, access to venture and social capital networks, availability of knowledge about foreign markets, leadership and entrepreneurial traits cofounders of startups, their cultural traits and cognitive skills, the presence of global think-ing and broad business orientation of startup founders. Based on the analysis of the success stories of domestic startups on the global market, the conditions and features of the emergence of global startups of Ukrainian origin were studied. For local startups to enter international markets, strategies for their rapid internationaliza-tion have been identified: joining international professional associations, integrating the local busi-ness into the system of European and global value-added chains, and developing bilateral plans for industry and key economic areas of the country.

Internationalization of Traditional and E-Business in Finance: A Comparative Study

The phenomenon of internationalization has been extensively investigated, leading to the formulation of frameworks to encapsulate its fundamental principles. However, recent technological innovations have dismantled previously unassailable barriers. This same technological progress has increased digitized enterprises, more aptly known as E-Business Companies (EBCs). This study serves a dual purpose: firstly, to delve into widely researched conventional market entry theories, and secondly, to scrutinize the relevance of these theories concerning the internationalization process for both traditional and electronic businesses operating within the financial sector. Addressing this intricate subject necessitated a cross-case comparative analysis employing secondary data. Potential distinctions and parallels between the two were underscored by juxtaposing the case study entities. The outcomes revealed a contrast between the gradual expansion of traditional companies and the rapid internationalization process of EBCs, largely propelled by Internet technology and relatively unencumbered by traditional market entry barriers. Both firms’ managerial strategies and organizational culture influenced their expansion trajectories. This study contributes by consolidating and aggregating existing literature, enhancing its applicability, and furnishing a foundation for future research in this domain.

The role of political connections in rapid internationalisation: A study among Chinese international new ventures

Drawing upon the attention-based view, we examine whether political connections facilitate or hinder the speed of new venture internationalisation. Given the limited managerial attention and information-processing capacities of decision-makers, international new ventures (INVs) need to make a trade-off between domestic business activities and rapid foreign expansion. We hypothesise that INVs with political connections, being embedded in political networks in their home market, tend to focus their attention on domestic business activities rather than rapid internationalisation. We also hypothesise that a high level of subnational trade openness mitigates the baseline negative relationship. Analyses based on the longitudinal data of INVs publicly listed in China support the hypotheses. Our study contributes to the literature by unveiling the dilemma of INVs which are developing board political connections at home and seeking rapid internationalisation abroad.

Does Rapid Internationalization Enhance Innovation Performance of Emerging Market MNEs?

Does Rapid Internationalization Enhance Innovation Performance of Emerging Market MNEs?

Performance of cross-border acquirers from India and China: its sustainability in the long-run?

PurposeEmerging market multinational companies have been vigorous in pursuing inorganic growth through cross-border acquisitions (CBAs). The fundamental studies till now have portrayed that rapid internationalization through CBAs tends to create value for these emerging market firms (EMFs) in the short term. However, there is an ambiguity about whether these firms endure better performance in the long term. The purpose of this study is to assess the long-term (ex-post) financial and operating performance of EMFs involved in overseas acquisitions before the COVID-19 pandemic hit the world economy.Design/methodology/approachCBAs completed by Indian and Chinese companies constitute the sample of the study. The performance has been analysed during the pre-COVID period spanning 17 years from 2001 to 2017. A comprehensive set of 14 financial ratios has been used to represent change (improvement/decline) in enterprises’ post-acquisition operating performance; these ratios have been divided into four broad groups: profitability, efficiency, solvency and liquidity ratios.FindingsThe performance of Indian companies has deteriorated significantly after the acquisition. However, there has been no change (deterioration/improvement), subsequent to CBAs, in the profitability of Chinese firms.Practical implicationsThe findings of the study support that firms from emerging economies exploit CBAs as a “springboard” to obtain strategic assets including intangible resources and brands rather than to achieve synergies through economies of scale and scope. Apparently, outbound acquisitions by emerging economy firms are not driven by cost-reduction or revenue-generation activities.Originality/valueNone of the studies, to the best knowledge of the authors, has carried out performance analysis using a comprehensive set of financial ratios. The comparative study of two emerging economies is another valuable addition to the existing literature. The study holds the potential to serve as the benchmark to assess the performance of CBAs executed after COVID-19.

Born-again global internationalization in family businesses as a process: a dynamic capabilities perspective in the context of socioemotional wealth

PurposeBorn-again global internationalization is a rarely researched topic. Especially process-oriented studies are largely missing. In loss modes concerning their socioemotional wealth (SEW), family businesses take more risks and can be informative examples of born-again global internationalization.Design/methodology/approachThis article analyzes the process of born-again global internationalization of a mature family business triggered by succession in an SEW loss mode. The interplay of dynamic capabilities (DCs) as drivers and SEW preservation guides the in-depth analysis based on an interpretative single case study design.FindingsThe analysis reveals a model with (1) the personal and familial level of the business family, (2) the bonding and transfer level between the business family and the family business and (3) the organizational level as three levels of DCs as drivers of born-again global internationalization in family businesses and SEW preservation as a continuously influencing context.Originality/valueThe article contributes to push forward the fragmented level of knowledge in the field of born-again global internationalization of family businesses. It brings together the triggering phase of born-again global internationalization with the later phases (driving successful rapid internationalization). In particular, it explores how the triggering factors on the family level can be translated into the development of capabilities on the firm level to drive successful internationalization. Based on these insights, the article offers novel implications for research and practice.

The born global and international new venture revisited: An alternative explanation for early and rapid internationalization

We revisit the empirical origins of a popular research topic: the phenomenon of early and rapid internationalization. By means of a qualitative case study, we re-examine the samples of firms used in two of the seminal studies on ‘born globals’ and ‘international new ventures’. A dominant pattern characterizing both samples, but not reported by the original authors, was that incumbent organizations were involved in the founding of the new ventures. Given this unexpected finding, we empirically investigate how being reproduced from pre-existing organizations affected the internationalization pathways of the new ventures, collecting data that extend beyond the scope and time period examined in the original studies. Our analysis shows how the evolution of the relationship between old and new generations of organizations is critical to explaining how new venture internationalization proceeded. Although the incumbent’s presence prior to foundation enabled early and possibly even rapid internationalization, it was also the source of discontinuity and instability. Based on these findings, we offer a relational perspective on the incumbent’s involvement in founding and internationalizing new ventures. Our study illustrates how applying the methodology of a case study revisit can generate new theoretical insights in existing research fields.

R&D alliances and SMEs post‐entry internationalization speed: The impact of alliance management capability and co‐innovation ambidexterity

AbstractResearch SummaryThis study delves into the relationship between alliance management capability (AMC) and the post‐entry internationalization speed of small‐sized and medium‐sized enterprises (SMEs). We develop a novel theoretical framework that illuminates the effect of co‐innovation ambidexterity as a mechanism that unlocks AMC value in speeding up SME internationalization following entry into foreign markets. To validate our framework, we conduct an empirical investigation using a sample of 278 UK‐based manufacturing SMEs. Our findings support the proposition that co‐innovation ambidexterity is a crucial mediating mechanism through which AMC boosts the post‐entry internationalization speed of SMEs. Therefore, this research sheds new light on the critical roles of AMC and co‐innovation ambidexterity during the post‐entry stage, which has far‐reaching implications for the fields of international entrepreneurship and international strategic alliances.Managerial SummaryInternationalizing SMEs are increasingly forming alliances with the aim of accessing and leveraging external knowledge to tackle the challenges they typically encounter during post‐entry phase. However, these alliances are difficult to establish and manage, which results in high failure rates. To address this lacuna, we argue that AMC and co‐innovation ambidexterity facilitate the post‐entry internationalization speed of SMEs. Using data from 278 UK‐based manufacturing SMEs, we show that AMC is an important capability that allows SMEs to leverage and harness the knowledge of their alliances for co‐innovation ambidexterity, which, in turn, increases their post‐entry internationalization speed. Together, these findings provide important insights for those SMEs' managers who aim to develop effective strategies for rapid internationalization via strategic alliances.

Born Global Strategies and the Corporate Performance of Korean Firms

Purpose - This paper empirically investigates the relationship between born global strategy and the accounting- and market- based financial performance of Korean firms. Further, this study identifies the characteristics of born global firms (BGs) in comparison with non-BG counterparts in terms of size, R&D, and liability. Design/methodology - Using a database of listed Korean SMEs in the manufacturing sector from 2010 to 2020, this study applies panel generalized least squares (GLS) estimation and logistic regression techniques. Findings - This study finds that BG strategy is negatively related to the firm’s accounting-based financial performance, while it is positively related to the market-based financial performance. This study also finds that BGs have higher sales volume and more total assets compared to their non-BG counterparts. In addition, Korean BGs spend more on R&D, and at the same time have higher liability. Originality/value - BGs, by definition, are firms that are actively penetrating foreign markets from the early stages of their establishment. Previous studies of Korean BGs have tried to identify the determinants of BGs' rapid internationalization and their superior performance. However, most of these studies have utilized either qualitative case- or survey-based analyses with relatively limited numbers of observations. From a different perspective, this study provides more objective evidence by investigating how the BG strategy affects the financial and market performance of firms, and by characterizing BGs in terms of financial data.

Top and middle management characteristics and internationalization speed

PurposeThis study aims to bridge the gap between firms' internationalization speed research and the emerging study of the interface of a top management team (TMT) and a middle management team (MMT). Accordingly, this study examines the effect of TMT output function and the moderating effect of similarity between TMT and MMT in functional background and international experience on internationalization speed.Design/methodology/approachA two-way fixed-effects approach is used to analyze a dataset of 1,040 observations.FindingsThe results suggest that an output-oriented TMT tends to promote rapid internationalization and that MMT members who are similar with TMT members in functional backgrounds and international experience may be more inclined to support and facilitate internationalization speed advocated by TMT.Originality/valueThis study highlights the importance of demographic similarity between TMT and MMT in speeding up a firm's international expansion, thus advancing the notion that demographic similarity may align the perspectives and perceptions among multi-echelons, leading to consensus on strategy development.

The Relationship Between RMB Internationalization and Sino-US Trade

As China is the largest exporting economy, the rapid internationalization of RMB does impact on the trade structures of many countries. As the United States is China’s most significant trading partner, the factors influencing Sino-US trade cannot be neglected. As a result, in order to widen the study findings in the field of RMB internationalization, this article applies multiple regression analysis to completely evaluate the influence of RMB internationalization on Sino-US trade. The paper demonstrates that RMB internationalization increases both Chinese imports and Chinese exports to the United States, but has a greater impact on exports than imports. Our preliminary results make favorable recommendations for achieving RMB internationalization and benign interactions in Sino-US trade.

Adoption of International Financial Reporting Standard: A Literature Review

International Financial Reporting Standard (IFRS) refers to a unique, uniform, simple, and easily understandable accounting standard acceptable and applied across the globe by various firms. It is emerging as a powerful device to bring uniformity to financial reporting by companies at the global level. Due to rapid industrialization and internationalization, the countries opened their avenue to foreign corporations. Therefore, it has been necessitated to have an accounting system that could bring uniformity and acceptability to financial reporting across borders. This review article has explored the present situation of the IFRS in the light of its emergence at the global level. The paper also proposes the model by merging the IFRS constructs with FDI, robust financial information reporting, transparency, and comparability construct by drawing together and developing the scale for measuring quality financial information through International Financial reporting standards based on existing literature. Against this backdrop, the present review paper seeks to highlight different dimensions and the pros and cons of using the International Financial Reporting Standard across borders. The content analysis has been adopted as the methodological framework for the literature review. The result of studies have confirmed that IFRS assimilation will improve transparency, comparability across the spectrum.