Home institutions, internationalization and firm performance

Chen, Yan; Zhai, Ruirui; Wang, Chengqi; Zhong, Changbiao

doi:10.1108/md-05-2014-0311

Cited by 25 publications

(25 citation statements)

References 53 publications

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“…Studies of firm performance show main and interactive effects of institutions. Chen, Zhai, Wang, and Zhong () examine how home institutions moderate the relationship between internationalization and performance of 118 stock‐listed Chinese firms over the period 2006–2011. They find that foreign ownership and region‐specific marketization help firms reap the performance benefits of internationalization, while state ownership plays an insignificant role.…”

Section: Hypothesesmentioning

confidence: 99%

Natural resource endowment and firm performance: The moderating role of institutional endowment

Zoogah

2017

Global Strategy Journal

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Research Summary Does institutional endowment moderate the relationship between natural resource abundance and firm performance? Drawing from institution‐based theories (IBT), we examine the interactive effects of institutional endowment (as indicated by natural resource governance) on firm performance. We use 2013 data of 492 firms from 27 African countries and multilevel techniques to find significant interactions of institutional endowment. We discuss the theoretical and practical implications of these findings for management and organization scholarship. Managerial Summary The purpose of this study is to examine the extent to which firm performance differs across countries in Africa as a function of institutional factors given natural resource abundance. We find that firm sales are higher in countries with strong institutions, strong enabling environments, and strong safeguards and quality controls when natural resource abundance is high. When natural resource abundance is low, firm sales and net profits are higher in countries with strong reporting practices, and profit margins are higher in countries with strong safeguards and quality controls.

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Section: Hypothesesmentioning

confidence: 99%

Natural resource endowment and firm performance: The moderating role of institutional endowment

Zoogah

2017

Global Strategy Journal

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“…In summary, Filatotchev and Piesse [10] studied the experience of MNCs of 711 SMEs entrepreneurs and found that the market share sales growth pretax gross profit is negatively correlated; but the interaction effect between the two is positively correlated. Recently, Chen et al [20] considered a sample of 118 listed companies from 2006 to 2011 and found that private and specific regional marketization helps companies obtain international performance gains, while public operation plays a negligible role. e role of Zhou [21] studied 535 manufacturing companies of A-share listed companies from 2001 to 2014. e overall sample's international performance relationship is W-shaped, but changes with the size of the company.…”

Section: Introductionmentioning

confidence: 99%

“…Overall, the research on the impact of internationalization on company performance has different results, irrelevant [23][24][25], linear [19,20,26,27], U shape [6,18,21,28,29], S type [17], and higher power W type [21], and different external factors will have different effects.…”

Section: Introductionmentioning

confidence: 99%

The Relationship between Extent of Internationalization and Firm Performance (Taiwan 1992–2017)

Wei

Lin²

2021

Mathematical Problems in Engineering

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The purpose of this study was to discuss the impact of the extent of internationalization on firm performance measured for firms with a high Tobin’s Q (firms with good operating performance), a median Tobin’s Q (firms with average operating performance), and a low Tobin’s Q (firms with poor operating performance). In addition to discussion on the impact of internationalization on firm performance, this study also discussed the impact of corporate proprietary assets (using assets, R&D, marketing, and management-related variables as moderating variables) and control variables (scale of company, debt-asset ratio, firm age, board structure, and proportion of pledged shares by directors) on firm performance. The research results showed that there is an S-shaped relationship between extent of internationalization and firm performance. However, further discussion found that there is an S-shaped relationship between extent of internationalization and performance for firms with a high Tobin’s Q but a slight decline in the middle of the S-shaped curve, as well as a general linear negative correlation between extent of internationalization and performance for firms with a median Tobin’s Q and an inverted U-shaped correlation between extent of internationalization and performance for firms with a low Tobin’s Q.

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“…First, we contribute to institutional theory and the IB literature. Prior studies have focussed on the heterogeneous internationalization behavior of firms responding to institutional pressures (Chen et al, 2015a;Cui and Jiang, 2012;Pan et al, 2014;Peng et al, 2008). Our study extends the literature by proposing that the antecedents of internationalization vary with the different levels of state capitalism.…”

Section: Introductionmentioning

confidence: 51%

Does state capitalism matter in firm internationalization? Pace, rhythm, location choice, and product diversity

Chen

Zeng

et al. 2016

Management Decision

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Purpose – The purpose of this paper is to investigate the direct effects of state capitalism on the internationalization behavior of state-owned enterprises (SOEs). Specifically, the authors focus on four distinct aspects of internationalization behavior; namely, pace of internationalization, rhythm of internationalization, location choice (developing countries vs developed countries), and diversity of product lines. Design/methodology/approach – The authors empirically test the hypotheses using data from Chinese construction companies during the period 2009-2015. The authors build a unique dataset by combining the data from ENR Top 225 International Contractors reports and the State Administration for Industry and Commerce of China information. Moreover, concerning the panel data structure and the potential for autocorrelation and heteroskedasticity, The authors use the feasible generalized least square panel model to test the hypotheses. Findings – The authors find that the level of state capitalism has a positive effect on SOEs’ rhythm of internationalization, while there is no significant relationship between the level of state capitalism and the pace of internationalization. Furthermore, the authors find that the SOEs affiliated with higher levels of government organizations are more likely to locate business operations in developing countries and engage in more diversity of product lines. Research limitations/implications – The findings show that the different varieties of state capitalism are the source of the different internationalization patterns of SOEs. Instead of supposing SOEs to be uniform players in emerging economies, the authors show that the nature of SOEs varies depending on the level of government with which they are affiliated, and this fact results from the divergent manifestations of state capitalism itself. Originality/value – This study improves the understanding of how state capitalism affects the capabilities and motivations of SOEs in regard to overseas expansion. The authors extend institutional theory by supposing that the level of state capitalism has a positive effect on the rhythm of internationalization. Moreover, the authors find that SOEs embedded with high levels of government affiliation tend to enter into developing countries and diversify their product lines.

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Home institutions, internationalization and firm performance

Cited by 25 publications

References 53 publications

Natural resource endowment and firm performance: The moderating role of institutional endowment

Natural resource endowment and firm performance: The moderating role of institutional endowment

The Relationship between Extent of Internationalization and Firm Performance (Taiwan 1992–2017)

Does state capitalism matter in firm internationalization? Pace, rhythm, location choice, and product diversity

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