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Showing papers on "Internationalization published in 2013"


Journal ArticleDOI
TL;DR: In this paper, an enriched typology of emerging economies with a focus on mid-range emerging economies, which are positioned between traditional emerging economies and newly developed economies, is proposed.
Abstract: This paper revisits and extends our earlier work (in 2005) in the pages of this journal. We argue that there is a need for more fine-grained understanding of the country context along two dimensions: (1) institutional development and (2) infrastructure and factor market development. Specifically, we propose an enriched typology of emerging economies with a focus on mid-range emerging economies, which are positioned between traditional emerging economies and newly developed economies. Then we examine new multinationals from these mid-range emerging economies that have internationalized both regionally and globally. We outline directions for further research based on this typology in terms of (1) government influence, (2) resource orchestration, (3) market entry, and (4) corporate governance regarding the internationalization strategy of these emerging multinationals from mid-range economies.

537 citations


Posted Content
TL;DR: This paper found that firms that are affiliated with a business group, have more firm-and group-level international experience and have more technological and marketing resources are more likely to shift from exports to FDI.
Abstract: An important step in the internationalization process of emerging economy firms is the shift from exports to foreign direct investment (FDI). We integrate the resource- and institution-based views to suggest that firms that can use unique institutional advantages are more likely to make this shift. We test these arguments with a longitudinal sample of 28,563 firm-year observations (1989–2005). We found that firms that are affiliated with a business group, have more firm- and group-level international experience, have more technological and marketing resources, and operate in service industries are more likely to shift from exports to FDI.

370 citations


Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of CEO attributes on the internationalization-performance relationships of SMEs and found that age, educational level, international experience, and duality of the CEO have moderating effects on the relationship between internationalization and firm performance.

338 citations


Journal ArticleDOI
TL;DR: The authors reviewed the concept of speed from an internationalization perspective, describes the multidimensional nature of the concept and sets out the different aspects that link timescales with the types of changes that take place during internationalizing processes.
Abstract: While firm internationalization processes have been understood as being dynamic, the dimension of speed has rarely been the main focus of research efforts, which, until a decade ago, focused principally on explaining sequences of entry modes and choices of markets. The emergence of the study of international entrepreneurship has enhanced the role of speed, although this has usually been measured in terms of the time lag between a firm's foundation and its initial international action, with little attempt at defining and explaining the speed of the process once it is under way. This study reviews the concept of speed from an internationalization perspective, describes the multidimensional nature of the concept and sets out the different aspects that link timescales with the types of changes – continuous and discontinuous – that take place during internationalizing processes. The paper concludes with a research agenda as a guide for future work on considering the role of speed in the internationalization process.

337 citations


Journal ArticleDOI
TL;DR: In this paper, the authors combine the concept of location derived by economic geographers with theories of the multinational enterprise (MNE) and the liability of foreignness developed by international business scholars, to examine the factors that propel MNEs toward, or away from, "global cities".
Abstract: We combine the concept of location derived by economic geographers with theories of the multinational enterprise (MNE) and the liability of foreignness developed by international business scholars, to examine the factors that propel MNEs toward, or away from, “global cities”. We argue that three distinctive characteristics of global cities – global interconnectedness, cosmopolitanism, and abundance of advanced producer services – help MNEs overcome the costs of doing business abroad, and we identify the contingencies under which these characteristics combine with firm attributes to exert their strongest influence. Consistent with these arguments, our analysis of a large sample of MNE location decisions using a multilevel multinomial model suggests not only that MNEs have a strong propensity to locate within global cities, but also that these choices are associated with a nuanced interplay of firm- and subsidiary-level factors, including investment motives, proprietary capabilities, and business strategy. Our study provides important insights for international business scholars by shedding new light on MNE location choices and also contributes to our understanding of economic geography by examining the heterogeneous strategies and capabilities of MNEs – the primary agents of economic globalization – that shape the nature of global cities.

255 citations


Journal ArticleDOI
TL;DR: The authors empirically analyzed the host-country determinants of Chinese outward direct investments (ODI) in the period from 2003 to 2008, using disaggregated data by country and sector and distinguishing between state-owned or controlled enterprises (SOEs) and privately-owned firms.

198 citations


Journal ArticleDOI
TL;DR: Examining institutional effects in the context of semiglobalization by considering the influences of three formal institutions of countries and geographic regions shows that MNEs' degree of internationalization into a country is influenced by both country and regional institutional environments.
Abstract: Traditional research suggests a relationship between country-level institutions and the location choices of MNEs. However, more recent theory suggests MNEs also focus on regions (semiglobalization). Therefore, this study examines institutional effects in the context of semiglobalization by considering the influences of three formal institutions (i.e., regulatory control, political democracy, capital investments) of countries and geographic regions on MNEs' location choices of internationalization. We use a sample of Japanese MNEs operating in 45 countries within eight regions. The results show that their degree of internationalization into a country is influenced by both country and regional institutional environments. Additionally, a semiglobalization perspective provides better explanatory power than does the country-level perspective. These results present a new perspective on how MNEs consider institutional environments in their international strategy. Copyright © 2013 John Wiley & Sons, Ltd.

187 citations


Journal ArticleDOI
TL;DR: In this paper, the authors build on resource dependency theory and the resource-based view to investigate how SMEs are able to achieve venture growth in the face of these constraints by adopting internationalization and inter-firm collaboration strategies.

187 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined the impact of firm-level governance structure on the innovation and internationalization strategies of emerging market firms and found that in the case of emerging markets, governance is a response to the prevailing institutional environment and affects the innovation of firms.

174 citations


Journal ArticleDOI
TL;DR: This article examined the extent to which international exposure from key informal (geographically proximate firms) and formal (alliance partners) network relationships impacts new venture internationalization, and found that the effects differ based on the age of the venture.

169 citations


Posted Content
TL;DR: In this article, the authors examined the impact of firm-level governance structure on the innovation and internationalization strategies of emerging market firms and found that in the case of emerging markets, governance is a response to the prevailing institutional environment and affects the innovation of firms.
Abstract: We examine the impact of firm-level governance structure on the innovation and internationalization strategies of emerging market firms. We propose that in the case of emerging market firms, governance is a response to the prevailing institutional environment and affects the innovation and internationalization strategies of firms. Based on a longitudinal sample of 16,337 firm-year observations of Indian listed firms over a nine-year time period from 2001-2009, we find a positive effect of family ownership and group affiliation on R&D intensity and new foreign investments. Institutional ownership also positively affects new foreign investments, but has no effect on R&D intensity. Further, we find that R&D intensity interacts with family ownership, institutional ownership and group affiliation in affecting new foreign investments.

Journal ArticleDOI
TL;DR: In this paper, the impact of bank internationalization on domestic market power (Lerner index) and risk for German banks was analyzed. And the analysis showed that higher market power is associated with lower risk.
Abstract: We analyze the impact of bank internationalization on domestic market power (Lerner index) and risk for German banks. Risk is measured by the official declaration of regulatory authorities that a bank is distressed. We distinguish the volume of foreign assets, the number of foreign countries, and different modes of foreign entry. Our analysis has three main results. First, higher market power is associated with lower risk. Second, holding assets in many countries reduce market power at home, but banks with a higher share of foreign assets exhibit higher market power. Third, bank internationalization is only weakly related to bank risk.

Journal ArticleDOI
TL;DR: In this paper, the authors argue that internationalization of the curriculum should be a planned, developmental, and cyclical process and that employing the imagination is an essential part of the process of internationalization in any discipline.
Abstract: Internationalization of the curriculum provides challenges and opportunities for academic staff and institutions. This article reports on research undertaken in 2010-2011, which engaged academic staff in different disciplines and universities in the process of exploring and making explicit the meaning of internationalization of the curriculum in their disciplines. One of the outcomes of the research was a five-stage model of the process of internationalization of the curriculum. A critical part of the process involved small groups of staff discussing existing paradigms within their disciplines, questioning “what we believe” in relation to the curriculum and student learning and imagining and negotiating new possibilities. The article argues that internationalization of the curriculum should be a planned, developmental, and cyclical process and that employing the imagination is an essential part of the process of internationalization of the curriculum in any discipline.

Journal ArticleDOI
TL;DR: In this article, the authors identify the alignment of transferable skills developed through international experience with those sought by graduate employers and argue the value of domestic intercultural contexts for similar learning.
Abstract: This article identifies the alignment of transferable skills developed through international experience with those sought by graduate employers and argues the value of domestic intercultural contexts for similar learning It is essential reading for world-wide universities, policy-makers and academics, offering key pointers for policy and practice

Journal ArticleDOI
TL;DR: In this article, the authors examined the drivers and performance outcomes of two patterns of internet use supporting export marketing: the internet as an alternative to a physical presence and the Internet as a sales channel.
Abstract: Purpose – While the internet enjoys increasing interest regarding its potential to extend the global reach of firms, especially small and medium‐sized firms (SMEs), little work has been done on the viability of the internet as a new and effective path to internationalization. Specifically, it is unclear how the internet can successfully support export marketing. The purpose of this paper is to examine the drivers and performance outcomes of two patterns of internet use supporting export marketing: the internet as an alternative to a physical presence and the internet as a sales channel.Design/methodology/approach – Data were collected from 115UK‐based SMEs involved in “active online internationalization”. Relationships are examined in a “soft‐modeling” partial least squares (PLS) analysis.Findings – The findings suggest that online channel support positively enhances export performance for SMEs. Yet, the use of the internet as an alternative to a physical market presence does not lead to higher export per...

Journal ArticleDOI
TL;DR: In this paper, the authors examine the determinants of two distinct geographic pathways to internationalization for small and medium-sized enterprises (SMEs) and examine the influence of selected key intangible resources, namely, innovation, human resource management, networking and the firm's experience.
Abstract: Purpose – The purpose of this paper is to examine the determinants of two distinct geographic pathways to internationalization for small and medium‐sized enterprises (SMEs). Regional and global pathways are juxtaposed to study the influence on export performance of selected key intangible resources, namely, innovation, human resource management, networking and the firm's experience.Design/methodology/approach – Building upon a resource‐based view of the firm, Tobit regression models are used to test the hypotheses on a sample of 2,657 Italian manufacturing firms.Findings – The paper provides empirical evidence that the determinants of SME export performance vary in line with the geographic scope of internationalization. While product innovation (innovation) positively impacts on SME export performance, irrespective of export destination, other factors do so selectively. For example, location in industrial districts (networking) and the deployment of external managers (human resource management) exclusivel...

Journal ArticleDOI
TL;DR: In this article, the authors investigated the internationalization of corporate boards, using a sample of 346 non-financial listed Nordic firms during 2001-2008, and found that the percentage of foreign directors was related primarily to financial internationalization rather than foreign sales, and thus presumably to the monitoring rather than advisory functions.
Abstract: This study investigates the internationalization of corporate boards, using a sample of 346 non-financial listed Nordic firms during 2001–2008. Given a high level of international activity, these firms have surprisingly few foreign directors. The picture of international expertise changes considerably, however, if we also count the international experience of national directors. The percentage of foreign directors is related primarily to financial internationalization rather than foreign sales, and thus presumably to the monitoring rather than advisory functions. The international experience of the nationals covaries with foreign sales, and increases with the share of foreign directors. Thus both sources of international expertise should be considered when analyzing board internationalization.

Journal ArticleDOI
TL;DR: In this article, the authors assess the usefulness of the internationalization process model (IPM), also known as the Uppsala model, to explain the recent strategies of emerging economy MNEs.
Abstract: The rapid emergence of multinational enterprises (MNEs) from emerging economies calls for a re-assessment of established theories of the MNE. We assess the usefulness of the internationalization process model (IPM), also known as the Uppsala model, to explain the recent strategies of emerging economy MNEs. We argue that popular stages models derived from the IPM are not helpful, but the underlying process of experiential learning driving steps of increased commitment is an important element in explaining the evolution of these MNEs over time. Focusing on the role of acquisitions within internationalization processes, we illustrate our arguments with six case studies of Thai MNEs. On this basis, we discuss how the IPM can inform future research on emerging economy MNEs. Specifically, the IPM suggests focusing on the internal and external factors that may induce firms to accelerate their cycle of international learning and commitment, in particular the roles of networks, acquisitions, human resources, big step commitments, the home country institutional environment, and possible managerial biases.

Journal ArticleDOI
TL;DR: In this paper, the authors discuss the nature of an Italian machinery producer's serial nonlinear internationalization, explaining why it internationalized nonlinearly and developing research implications, concluding that despite having had a year or more without export activities in 29 countries (in eight of them twice or more) and activities only in seven countries in 2011, this firm has been relatively successful.

Journal ArticleDOI
TL;DR: In this article, the authors use a representative and cross-country comparable sample of manufacturing firms (EFIGE) to document patterns of interaction among firm-level internationalization, innovation and productivity across seven European countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom).
Abstract: We use a representative and cross-country comparable sample of manufacturing firms (EFIGE) to document patterns of interaction among firm-level internationalization, innovation and productivity across seven European countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom). We find strong evidence of positive association among the three firm-level characteristics across countries and sectors. We also find that the positive correlation between internationalization and innovation survives after controlling for productivity, with some evidence of causality running from the latter to the former. Our analysis suggests that export promotion per se is unlikely to lead to sustainable internationalization because internationalization goes beyond export and because, in the medium to long term, internationalization is likely driven by innovation. We recommend coordination and integration of internationalization and innovation policies 'under one roof' at both the national and EU levels, and propose a bigger coordinating role for EU institutions. © CEPR, CES, MSH, 2013.

Journal ArticleDOI
TL;DR: In this paper, the authors discuss the importance of international experience in explaining firm internationalization, and explore how the source of the firm's international experience will determine the limits to its application in foreign markets.
Abstract: International experience, the experience that firms accrue from operating internationally, is a key concept in explaining firm internationalization. This paper reviews the conceptualization of international experience in the international business literature. It highlights how prior research has identified three dimensions of the international experience construct (length, scope and diversity), thereby demonstrating that international experience should be treated as a multidimensional construct. In addition, intensity is presented as a fourth and novel dimension of international experience. The importance of this multidimensional conceptualization is highlighted in an explanation of why the international diversification and international experience constructs are not synonymous. In light of the importance of international experience in explaining firm internationalization, the authors explore how the source of the firm's international experience will determine the limits to its application in foreign markets. In particular, the authors distinguish between location-bound international experience and non-location-bound international experience as sources of firm-specific advantages (FSAs). The FSAs that the firm develops from its experience with equity and non-equity entry modes are presented as examples of specific FSAs developed within the firm's bundle of FSAs concerning internationalization. The paper concludes with some implications of the conceptualization of international experience for several issues of international business research as well as providing managerial implications.

Journal ArticleDOI
TL;DR: In this article, the authors investigated whether barriers to export exhibit significant differences among firms and whether these impediments are uniform for born globals, a new breed of exporting firms that initiate exporting soon after inception.

Journal ArticleDOI
TL;DR: This brief communication presents both a global map with the functionality of a Google Map (zooming, etc.) and network maps based on normalized relations, which reveal complementary aspects of the network.
Abstract: The network of international co-authorship relations has been dominated by certain European nations and the USA, but this network is rapidly expanding at the global level. Between 40 and 50 countries appear in the center of the international network in 2011, and almost all (201) nations are nowadays involved in international collaboration. In this brief communication, we present both a global map with the functionality of a Google Map (zooming, etc.) and network maps based on normalized relations. These maps reveal complementary aspects of the network. International collaboration in the generation of knowledge claims (that is, the context of discovery) changes the structural layering of the sciences. Previously, validation was at the global level and discovery more dependent on local contexts. This changing relationship between the geographical and intellectual dimensions of the sciences also has implications for national science policies.

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the widely overlooked phenomenon of multinational enterprise (MNE) location avoidance, utilizing a multi-method research design and data on 131 foreign investment locations, and found that foreign location decisions in MNEs are influenced by how troublesome it is for managers to travel to or live in certain places.
Abstract: This study investigates the widely overlooked phenomenon of multinational enterprise (MNE) location avoidance, utilizing a multi-method research design and data on 131 foreign investment locations. It complements economic-choice-based location research by adding contextual dimensions at the country level that matter to managers personally, and affect decisions at the firm level. We provide a connection between international business research, the behavioral stream in economic geography, and the microfoundations stream in the strategic management literature. The results suggest that, in addition to traditional location choice criteria (including investment potential, internationalization strategy, and various geographic and psychic distances), foreign location decisions in MNEs are influenced by how troublesome it is for managers to travel to or live in certain places. An 11-item measure composed of travel inconveniences shows a significant negative moderating effect on the relationship between foreign direct investment potential and investment intensity. The effect is stronger for non-resource-seeking industries. We call this phenomenon the “hassle factor”.

Journal ArticleDOI
TL;DR: Brooks and Waters as mentioned in this paper discuss student mobility, migration and the internationalization of higher education in the UK, and present a survey of student mobility and migration in higher education environments.
Abstract: Rachel Brooks and Johanna Waters Basingstoke: Palgrave Macmillan, 2011, 208 pp., STG£55.00 hardback, (ISBN 978-0-2305-7844-9) Student Mobilities, Migration and the Internationalization of Higher Ed...

Journal ArticleDOI
Jae-Eun Jon1
TL;DR: In this paper, the authors study the impact of international student mobility on domestic students, particularly for domestic students who have been neglected in research but who are greater in number than international students.
Abstract: Increased international student mobility worldwide necessitates studying its impact on students, particularly for domestic students who have been neglected in research but who are greater in number...

Journal ArticleDOI
TL;DR: In this article, the authors describe the process of working with academics across the institution to design and implement learning outcomes at modular and program levels with the goal of internationalizing the curriculum through two phases.
Abstract: Internationalization of the curriculum attracts considerable interest, yet often remains in the hands of enthusiasts or is relegated to the periphery of personal skills modules. While academics may be “happy to ‘tinker around the edges’ of their course content and classroom pedagogy” they still frequently ask, “What does it really mean for me and my classroom?” This article outlines the experience of one U.K. university, which has been seeking to internationalize the curriculum through two phases. The overarching development framework of the first phase (Jones & Killick, 2007) is now being embedded through the university’s adoption of a global outlook as a graduate attribute. This attribute interlinks inclusivity and global relevance and connects equality and diversity with internationalization to form a cohesive construct for graduate development. The authors describe the process of working with academics across the institution to design and implement learning outcomes at modular and program levels withi...

Journal ArticleDOI
TL;DR: In this article, the authors compare classifications of early and rapidly internationalizing firms based on International New Ventures (classification method based on speed and scope of internationalization) as well as the original literature on Born Globals, and show that the two methods provide similar results with regard to overall patterns of internationalisation, but that they classify individual firms quite differently.
Abstract: The novel contribution of this article is that it compares classifications of early and rapidly internationalizing firms based on the original literature on International New Ventures (classification method based on speed and scope of internationalization) as well as the original literature on Born Globals (classification method based on speed and extent of internationalization). Evidence from a survey of almost 900 Danish manufacturers demonstrates that the two methods provide similar results with regard to overall patterns of internationalization, but that they classify individual firms quite differently. From a theoretical stance it is therefore recommended to incorporate a richer selection of indicators (aspects of speed, scope as well as extent) in order to secure higher comparability between studies.

Journal ArticleDOI
TL;DR: In this paper, the authors developed a framework that distinguishes three categories of IK necessary for internationalizing firms to gain market entry, localize strategies, and organize international enterprise procedures, and conclude that managers should source the specific IK needed before it becomes critical.
Abstract: The acquisition of relevant knowledge plays a critical role in the internationalization process. Yet a complete understanding of internationalization knowledge (IK) remains largely unexplored in the international marketing literature. The authors develop a framework that distinguishes three categories of IK necessary for internationalizing firms to gain market entry, localize strategies, and organize international enterprise procedures. Employing a longitudinal qualitative analysis of ten internationalizing firms, this study examines (1) why firms need these IK categories, (2) where they source them, and (3) at what stage of international growth they are needed. The authors conclude by addressing implications for practice and recommend that managers should source the specific IK needed before it becomes critical.

Journal ArticleDOI
TL;DR: In this article, the authors investigate the relationship among networking, international market venturing, and family ownership in a study of 1304 Australian manufacturing industry SMEs, and find evidence that inter-personal networking and inter-organisational networking positively influence SME international market exposure.