Dynamic capabilities and internationalization of authentic firms: Role of heritage assets, administrative heritage, and signature processes

The Belt and Road Initiative for an intercontinental ecosystem: Strategic implications for multinational enterprises around the world

“…Among the Chinese MNEs, the second‐home strategy is implicitly adopted in the case of the Geely‐Volvo M&A (Yakob et al, ), and also explicitly implemented in the case of Huawei as pointed out by its CEO, Zhengfei Ren, that Huawei takes Europe as its second home (Huawei Corporation, ) [Correction added on 19 March, after first online publication: Geely‐Volvo M&A was inserted into this sentence.]. In a sharp contrast to the “authentic” MNEs who rely on the “heritage endowments” built at home so that they “resist and limit local adaptation of process and products, and internationalize only if opportune by deploying preservation capabilities” (Arikan, Koparan, Arikan, & Shenkar, :1), the second‐home strategy bears unique implications for MNEs in the context of BRI and beyond (Li, ).…”

“…First, each MNE has a built‐in core competence derived from the context of its first home, which we can call “ first‐home lock‐in ” as a path‐dependent tendency to rely on the old core (Sydow, Schreyogg, & Koch, ; cf. Arikan et al, ; Karim & Mitchell, ; Rugman & Verbeke, , ). Second, the cross‐divide expansion requires a path‐breaking effort to build a new core, which we can call “ second‐home breakout ” (Li, ; cf.…”

“…In other words, while the first‐home model is about exploiting the old core competence, the second‐home model is about exploring a new core competence, and the dual‐core model is about leveraging/integrating the two distinctive core competences (cf. Arikan et al, ; Li, , ). It is worth noting that the dual‐core model is necessary not only due to the extreme contextual distances or gaps between the two sides of the global divide, but also due to the extreme organizational inertia or bias of the first‐home lock‐in (as possibly the greatest challenge to the second‐home model, thus rendering “ unlearning ” salient, cf.…”

“…It is worth noting that the dual‐core model is necessary not only due to the extreme contextual distances or gaps between the two sides of the global divide, but also due to the extreme organizational inertia or bias of the first‐home lock‐in (as possibly the greatest challenge to the second‐home model, thus rendering “ unlearning ” salient, cf. Arikan et al, ). For the purpose of building path‐breaking new core competence via unlearning the old core one, cross‐divide M&As can be highly instrumental (Karim & Mitchell, ; Li, , ; Madhok & Keyhani, ).…”

Top managers' attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium‐sized enterprises

“…In this context, literature has introduced a number of factors that can facilitate or hinder the efforts of enterprises towards internationalization. In general, literature has suggested strong networking (Peng & Lin, 2019; Senik, Scott‐Ladd, Entrekin, & Adham, 2011), sufficient resources (Lau, Ngo, & Yiu, 2010; Sui & Baum, 2014), advanced technology (Von Zedtwitz & Gassmann, 2002), and dynamic capabilities (Arikan, Koparan, Arikan, & Shenkar, 2019) as facilitating factors whereas poor support (Roy, Sekhar, & Vyas, 2016), deficiency of resources (Nguyen, Huynh, Trieu, & Tran, 2019), and poor innovative capabilities (Filippov, 2011) are indicated as hindering factors during internationalization process. However, it appears that no or very little has been paid to a vital factor that has potentially great importance on the process of entering into international markets.…”