A Contingency Theory of Internationalization

Abstract

0 studies of the internationalization-performance (i-P) relationship for emerging market multinational enterprises (eM MNes) have yielded mixed results, suggesting that a contingency view of i-P for eM MNes may be useful and timely. in particular, we suggest it is useful to analyze how the eMs' trade liberalization can amplify or reduce the performance from foreign market penetration in the context of electronics vs. non-electronics eM MNes. 0 Our framework suggests the i-P link is inverted-U shaped for electronics eM MNes and linear for non-electronics eM MNes. these relationships are further enhanced with higher trade liberalization. Our empirical tests with seven related measures of trade liberalization on a sample of 623 MNes from 14 eMs for 2000-2006 largely support our theory. 0Our article integrates and contributes to two small, growing, and related literatures: (1) the i-P relationship for eM MNes per se; and (2) the effect of trade liberalization on firms' internationalization. We conclude with fresh implications for theory, policy, and practice.

The Implications of Taylorism, Contingency Theory, Behavioral Management Theory and Systems Theory on Organization Management in the Globalization Era: A Comparative and Critical Review

“…As for organizations, there is no best way to organize the firm since it is heavily contingent on the environment and context of the Multinational company (MNC) (Forsgren 2008). The study of Banalieva and Sarathy (2011) shows that the internationalization-performance relationship is not the same in all emerging market MNCs. Moreover, the survey results of Torre et al (2011) indicate that the contingency view exists well in MNCs on regional level but not obvious on global level.…”

Strategic Asset Seeking and Innovation Performance: The Role of Innovation Capabilities and Host Country Institutions

“…Regarding international business, MNEs strive to align their organizational goals with the external environment to achieve strategic fit. Prior research has investigated the fit between organizational strategy, host country environment, international strategies, firm-specific resources, and firm ownership (Banalieva and Sarathy 2011;He et al 2015;Lin 2014;Tian and Slocum 2014). Although the concept of fit can take many forms, this study is interested in how EMNE innovation performance is contingent on the interactions between focal firms' SAS intent, innovation capability, and institutional quality in the host country.…”

Measuring the Degree of Internationalization for Taiwanese Banking Industry: Scoring Measurement by Principal Component Analysis

“…Futher looking at more recent internationalization of firms, Banalieva and Sarathy (2011) looked at the contingency theory of internationalization performance (IP) for emerging market multinational enterprises (EM MNEs). They looked at the factors concerning foreign sales, firm age, firm size , market inflation, market growth and market GDP potential together with International performance.…”