Internationalization and performance of Indian born globals

Abstract

Purpose The purpose of this paper is threefold: first, to study internationalization-performance relationship of Indian born global (IBG) firms from multi-theoretical lens and establish the nature of this relationship; second, to highlight the role of foreign equity in moderating this relationship; and third, to establish the relevance of export intensity (EI) in determining these firms’ financial performance. Design/methodology/approach In total, 411 IBG firms were identified based on born global (BG) definition and post-entry internationalization age requirement of this study. A balanced panel comprising of three years from 2010 to 2012 was analyzed using pooled panel and moderated multiple regression techniques. Findings The authors empirically prove that though EI and financial performance are positively related at overall level, this relationship is curvilinear in nature. In presence of foreign equity this positive curvilinear relationship is moderated to inverted-U shape. Research limitations/implications The data sample is restricted to 411 private limited IBGs between the years 2009 and 2012. Implications of the findings are for policy makers and managers to sharpen their strategic foresight for exporting firms in its post-entry period. Also, investors can take level of internationalization into cognizance when investing in BG firms. Practical implications The authors believe the results have practical implications for numerous parties, such as shareholders, institutional investors, scholars, policymakers and managers. It emboldens modern day managers to make further foray into internationalization due to its positive benefits on both productivity as well as profitability. Also, firms that look for foreign equity participation have to balance their strategies for greater scale and scope into international markets. Originality/value This is the first study that brings out the vital relationship aspect of EI with financial performance of IBG firms in their post-entry internationalization period, adding to international business literature in area of BG firms in their post-entry internationalization period.

Financial Performance and Audit Quality: Comparative Study of Investor Reaction

“…Adopting the research of Maqbool & Bakr [19], Prasaad et al, [20], Majanga [21], Yu et al, [22], Ganvir & Dwivendi [23], Bhat & Bhattacharya [24], Oyewobi et al, [25], Hall [26], Anwar [2], Afrifa & Padachi [27], financial performance in this study was measured using ROCE (Return on Capital Employed).…”

Interdependence Relationship of Internationalization—Performance in Manufacturing Firms Listed in Indonesia Stock Exchange and Chinese Stock Exchanges

“…Yang (2017), Zhou (2018), and Velez-Calle (2018) concluded a U-shaped relationship between internationalization and performance. Grant et al (1988), Chen et al (2014), Ganvir & Dwivedi (2017), and Zhang (2013) proposed an inverted U-shaped relationship between internationalization and performance. Contractor (2003), Lu & Beamish (2014), and Wu et al (2012) scrutinized an S-shaped relationship between internationalization and performance.…”

Capital de Giro e Internacionalização no Desempenho em épocas de crise.

“…O estudo de (Reeb & Kwok, 2000) seguidos por (Mittoo & Zhang, 2008;Saito & Hiramoto, 2010;Singh & Nejadmalayeri, 2004) evidenciaram que organizações que estão em mercados menos estáveis, no caso o Brasil, e decidem se internacionalizar para mercados mais estáveis, como Estados Unidos, conseguem diminuir seus riscos de operação e se alavancar mais do que seus concorrentes domésticas (upstream). Além disto, a internacionalização também propicia o aumento na performance e consequente lucratividade (Almodóvar & Rugman, 2014;de Andrade & Galina, 2013;Ganvir & Dwivendi, 2017;Gomes & Ramaswamy, 1999;Hsu & Boggs, 2003;Ruigrok, Amann, & Wagner, 2007;Ruigrok & Wagner, 2003;Wu, Wu, & Zhou, 2012;Zhou, 2018).…”