Essays on Internationalization in Modern Capitalism: The Issues of Knowledge Intensity, Chinese MNEs, Digitalization, and Foreign Market Entry Strategies

Abstract

In this modern capitalistic world, globalization facilitates economic and cultural connectivity, driven by innovation, digitalization, and the internationalization of multinational enterprises (MNEs). Digital technologies enable rapid information exchange and business model innovation. Emerging markets, characterized by economic growth, provide substantial opportunities for foreign direct investment, market expansion, and knowledge acquisition, reshaping the global economy. MNEs, influenced by advanced knowledge, capital input, and foreign entry strategies, significantly enhance globalization. However, globalization also intensifies global competition and opens discussions on the impact of emerging economies, geopolitical disputes, technological advancements, and changing consumer preferences. Therefore, I conducted four empirical studies (from Chapters 2 to 5) to explore the complex nature of firm internationalization. As China aims to become an innovation-driven economy, research on the knowledge management of Chinese MNEs has surged over the past 15 years. Chapter 2 develops a conceptual framework highlighting key factors in knowledge management, organized into six topical clusters and three evolutionary phases. Drawing from 150 articles in top business and management journals, I synthesize and integrate these insights. Additionally, I identify future research avenues, including shifting from knowledge exploitation to exploration and examining knowledge management trends in the digital era. Chapter 3 examines the global success of TikTok, developed by ByteDance, attributing its achievement to business model innovation strategies. TikTok successfully integrates aspects of various social networking and video-sharing platforms, offering a unique customer experience. Additionally, ByteDance leverages its extensive and diverse domestic market to test and refine TikTok's core technologies before expanding internationally. Digital products like apps can enter foreign markets with lower marginal and distribution costs, enjoying nearly instant global accessibility. Chapter 4 uses machine learning and traditional regression to examine the impact of international diversification on digital products' global performance. This study analyzes 117,535 apps from the Google Play Store, spanning 2005 to 2020. It also presents a conceptual framework that integrates insights from human knowledge and machine learning algorithms. Chapter 5 utilized machine learning techniques, specifically interpretable machine learning metrics, to compare various theories in international business. The aim was to address the issue of theories evolving independently without sufficient cross-theory analysis and relying heavily on self-references. Analyzing 62 variables related to the FDI strategies of 2,124 Japanese multinational companies, the study examined a large dataset of 96,803 observations across subsidiary activities from 2008 to 2017 in over 70 countries. This study identified key theories concerning FDI modes, highlighting both successful and unsuccessful strategies, and revealed previously overlooked variables for potential future exploration in research. This dissertation contributes to the field of internationalization by emphasizing innovation capability, competitive advantage, and the development of an international knowledge base through continual globalization. It is influenced by strategic assets, advanced knowledge resource-seeking motives, persistence in business models and technological innovation, and the accumulation of experience with globalization. Additionally, the dissertation offers several interesting future research avenues to advance international business research.