Making the next move: When does the newness of experience matter in overseas sequential entries of multinational companies?

Li, Wen Helena; Guo, Bin; Xu, Gangxiang

doi:10.1016/j.ibusrev.2017.03.001

Cited by 16 publications

(10 citation statements)

References 125 publications

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“…However, it would be interesting to extend our study to also empirically cover these other models of growth. In line with the literature regarding sequential international expansion (Chang, ; Li et al, ), one could investigate in more detail the sequence and timing of investments in domestic and international markets, how these domestic and international investments interact, and to what extent corruption affects the investment pattern…”

Section: Discussionmentioning

confidence: 99%

“…Therefore, we consider within-domestic and international growth decisions simultaneously (Cuervo-Cazurra et al, 2007;Wiedersheim-Paul, Olson, & Welch, 1978), and our empirical findings indeed show that acquisition choices in the domestic and international settings are not independent from each other. This result can stem from financial constraints and organizational complexity or resource and capability synergies across investments (Chang, 1995;Kumar, 2009;Li et al, 2017). This finding calls for considering domestic growth when analyzing the sequential expansion of firms.…”

Section: Internationalization As An Extension Of the Domestic Geogrmentioning

confidence: 99%

“…By considering spatial moves across different borders, we regard internationalization as the culmination of a more general geographic expansion process of a firm. We thereby also contribute to the research about internationalization, which tends to focus on either cross‐border activities only or comparing domestic and cross‐border activities (Erel, Liao, & Weisbach, ), and, to some extent, to the literature about sequential expansion abroad (Li, Guo, & GX, ).…”

Section: Introductionmentioning

confidence: 99%

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Effects of subnational regional corruption on growth strategies in emerging economies: Evidence from Russian domestic and international M&A activity

Bertrand

Betschinger

Laamanen

2018

Global Strategy Journal

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Research Summary This article contributes to an improved understanding of the effects of subnational regional corruption on the external growth strategies of emerging economy firms. We examine the acquisition activity of firms in their home regions, in other parts of the country, and internationally. We consider four mechanisms through which a corrupt regional home context can affect firms’ acquisition behaviors: (a) corrosive deal deterrence, (b) deal facilitation, (c) corruption escape into less corrupt contexts, and (d) enhanced corruption ability to acquire in similarly corrupt environments. Based on an analysis of the acquisition activity of 2,981 Russian firms established in 40 regions in Russia from 2001 to 2008, we find evidence for the existence of both deal facilitating and escaping effects of home region corruption. Managerial Summary Corruption indicators regularly reveal that emerging countries are more corrupt than developed countries. While prior academic research has associated corruption with predominantly negative effects on business activity, an increasing number of globally successful companies have emerged from such corrupt environments. We advocate a more nuanced view of the effects of corruption on the growth strategies of emerging economy firms. We show that home region corruption can have multiple effects on a firm's geographic expansion. Specifically, we find that corruption in the home region helps regional firms expand their business through acquisitions when it is pervasive and nonarbitrary. At the same time, however, when expanding geographically, firms, on average, seem to prefer to diversify their assets in other regions or countries that are less corrupt.

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Section: Discussionmentioning

confidence: 99%

Section: Internationalization As An Extension Of the Domestic Geogrmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Effects of subnational regional corruption on growth strategies in emerging economies: Evidence from Russian domestic and international M&A activity

Bertrand

Betschinger

Laamanen

2018

Global Strategy Journal

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“…Some scholars have pointed out that a high speed of technology development means that knowledge in the field changes and quickly becomes obsolete [20]. In such circumstances, external knowledge acquisition from various sources can provide domestic enterprises with quick access to embodied technology and easier entry into production [51]. Additionally, maintaining flexibility and avoiding not being locked into an obsolete technological paradigm is more critical for domestic enterprises in the industry with high technology change [52].…”

Section: The Moderating Role Of Technology Development Speedmentioning

confidence: 99%

How Knowledge Acquisition Diversity Affects Innovation Performance during the Technological Catch-Up in Emerging Economies: A Moderated Inverse U-Shape Relationship

Guo

Liu

et al. 2020

Sustainability

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Many domestic enterprises in emerging economies are concerned with the question of how to better utilize the portfolio of technology sourcing channels to achieve rapid economic growth by technological innovation. This paper looks at this issue by exploring the impacts of knowledge acquisition diversity (KAD) on innovation performance of domestic enterprises in China and the technological contexts (in terms of technology gap and technology development speed) under which KAD is most likely to contribute. Using panel data of the manufacturing industry in China over the 2001–2009 period, the results show that KAD has an inverse U-shaped relationship with innovation performance in terms of both product-related innovation performance (NPS) and knowledge-related innovation performance (PAT). Specifically, it reveals that the capability to generate technological innovation over time is dependent on how domestic enterprises manage their portfolio of knowledge sourcing channels to learn from foreign enterprises. Moreover, it is shown that the technology gap significantly moderates the inverted U-shaped relationship between KAD and both NPS and PAT. Technology development speed has a moderating effect on the inverted U-shaped relationship between KAD and innovation only in terms of NPS. The results of this study can help us to understand the relationships among technological contexts, KAD and innovation performance of domestic enterprises in emerging countries.

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“…First, they are able to construct portfolios in China as they can have rooms to diversify their business structures through follow-up investments while sharing knowledge [7][8][9]. Second, between the intervals of subsequent investments in the sequence of the sequential investment strategy, Korean firms can take advantage of market know-how's.…”

Section: Introductionmentioning

confidence: 99%

The Sequence of Sequential Investment and Its Competitive Effect

Yim¹

2017

AJMAHS

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Differently from a single investment strategy, a sequential investment strategy has the sequence of investments and thus time value is inevitably considered in order to analyze the effect of the sequential investment on firm performance. In the paper, the sequential investment strategy of Korean firms in China is analyzed. Due to their geographical closeness, Korean firms' direct investments to China is an eye-catching strategic behavior. A theoretic model is proposed to tackle the effect of Korean firms' Chinese sequential investments. The model predicts three strategic points. First, the sequence of Korean firms' sequential investments is a linear function. Second, an initial investment and follow-investments are reversely associated and, between them, Korean firms' sequential investments are more sensitively associated with follow-up investments. Third, the more the Korean firms are patient, they are more likely to increase the scale of follow-up investments.

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Making the next move: When does the newness of experience matter in overseas sequential entries of multinational companies?

Cited by 16 publications

References 125 publications

Effects of subnational regional corruption on growth strategies in emerging economies: Evidence from Russian domestic and international M&A activity

Effects of subnational regional corruption on growth strategies in emerging economies: Evidence from Russian domestic and international M&A activity

How Knowledge Acquisition Diversity Affects Innovation Performance during the Technological Catch-Up in Emerging Economies: A Moderated Inverse U-Shape Relationship

The Sequence of Sequential Investment and Its Competitive Effect

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