Speed of Internationalization: Mutual Effects of Individual‐ and Company‐ Level Antecedents

Li, Lee; Gao, Qian; Qian, Zhengming

doi:10.1002/gsj.1103

Cited by 56 publications

(75 citation statements)

References 70 publications

(126 reference statements)

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“…The literature examines internationalization speed mainly in three dimensions (Kuivalainen, Sundqvist, & Servais, 2007), namely earliness of initial foreign entry or post-entry expansion pace (Li, Qian, & Qian, 2015;Reuber, Dimitratos, & Kuivalainen, 2017;Sapienza, Autio, George, & Zahra, 2006), scope of country (Hashai, 2011;Vermeulen & Barkema, 2002), and intensity of foreign commitment (Li, Qian, & Qian, 2012;Oviatt & McDougall, 2005). The first dimension (timing) is essential (Rahaman, 2016), as it has become a common practice to define INVs if they start international business within 6 years of inception (Coviello, 2015;Deng, Jean, & Sinkovics, 2017).…”

Section: Internationalization Speed Invs and Performancementioning

confidence: 99%

“…Such institutional knowledge and routines may have an imprinting effect in subsequent international expansion to other destination locations (Cantwell, Dunning, & Lundan, 2010). Entrepreneurially oriented, INVs are featured with ownership of innovative, proactive, and risk-taking organizational culture (Li et al, 2015;McDougall & Oviatt, 2000). They may rapidly adapt their routines for their external environment in a new destination location through effective organizational learning (Autio et al, 2000).…”

Section: Upward Expansion Speed and Performancementioning

confidence: 99%

“…This variable captures the learning experience of entrepreneurial firms (Chandra, 2017;Li et al, 2015). As new ventures mature, they build a particular set of capabilities to evaluate opportunities (Rahaman, 2016).…”

Section: Instrumental Variablesmentioning

confidence: 99%

“…We first used 250 employees as the sampling threshold by following the OECD standard (OECD, 2016, p. 21). Then, we lowered the maximum number to 100 employees in the entire sample period (Li et al, 2015). Finally, we lowered the ceiling to a maximum of 100 employees in the first year but set no upper limit for subsequent employment growth to avoid ''growth penalty.''…”

Section: Robustness Testsmentioning

confidence: 99%

“…We have included some firm-level variables such as innovation, financial leverage, and productivity to control for such characteristics. Nevertheless, future studies may explore the roles of the individual-level factors (Li et al, 2015) in the relationship between rapid export expansion and performance. Finally, the two essential concepts in hypotheses, namely learning advantages of newness and diseconomies of time compression, still lack precise empirical operationalization, and future research may develop concrete measurement.…”

Section: Limitations and Future Researchmentioning

confidence: 99%

See 4 more Smart Citations

Rapid expansion of international new ventures across institutional distance

2018

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Rapid export expansion into institutionally distant locations has become more possible in the era of digital economy. Will such rapid expansion bring desirable outcome to firms? In a context of international new ventures (INVs) from emerging markets, we reconceptualize export expansion speed as the pace of exporting across institutional distance over a certain period of time. We then examine the relationship between rapid export expansion across institutional distance and overall firm performance. We incorporate directionality into export expansion and hypothesize the relationship to be positive when INVs export upwardly to more open countries, yet the relationship to be negative when INVs export downwardly to less open countries. We also hypothesize that the degree of market liberalization in subnational regions of origin of the INVs moderates the above speed-performance relationships. Instrumental variable models based on data of Chinese indigenous INVs during 2000-2009 support these hypotheses. This study both zooms in and zooms out the analytical lens along the location-related institutional axis, examines the joint effect of institutions involved in supranational directions and subnational origins on firm performance, and advances institutional theory.

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Section: Internationalization Speed Invs and Performancementioning

confidence: 99%

Section: Upward Expansion Speed and Performancementioning

confidence: 99%

Section: Instrumental Variablesmentioning

confidence: 99%

Section: Robustness Testsmentioning

confidence: 99%

Section: Limitations and Future Researchmentioning

confidence: 99%

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Rapid expansion of international new ventures across institutional distance

2018

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The microfoundations of subsidiary initiatives: How subsidiary manager activities unlock entrepreneurship

O’Brien

Scott

Andersson

et al. 2018

Global Strategy Journal

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Research Summary: We use a microfoundations lens to challenge the assumption of a simple relationship between organizational‐level context (subsidiary entrepreneurial orientation) and entrepreneurial outcomes (initiative realization). Drawing on middle manager and subsidiary literature, we argue that the strategic activities of the subsidiary's central actor, the subsidiary CEO (referred to as the subsidiary manager), translates the benefits of subsidiary entrepreneurship for initiative realization. We test this mediating effect of subsidiary manager micro‐level activities on data from 186 individuals. The results of our multilevel mediation analysis show that micro‐activities of subsidiary managers mobilize subsidiary entrepreneurship for initiative realization, “downward” through facilitating subsidiary adaptability and “horizontally” through enabling embeddedness in the local environment. Our findings also challenge the accepted value of “upward” championing alternatives. Revealing the centrality of subsidiary manager activities for unlocking entrepreneurship demonstrates the value of adopting a microfoundations lens for understanding organizational phenomena. Managerial Summary: Multinational companies (MNCs) increasingly expect their subsidiary units to contribute through realizing initiatives, such as new product, service, or process designs. Such outcomes are encouraged through a supporting organizational context for entrepreneurship. But to understand how an entrepreneurial context translates into realized initiatives demands that we apply a microfoundations lens and consider the activities of the subsidiary's central actor, the subsidiary chief executive officer—referred to as the “subsidiary manager.” The subsidiary manager is responsible for mobilizing the subsidiary to develop relationships to access the knowledge, ideas, and opportunities implicit in the initiative process. Revealing the impact of these micro‐activities advances our understanding of how to liberate the benefits of entrepreneurship for realizing initiatives. This study offers key insights for both subsidiary managers and headquarters.

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Incidence of cultural, economic, and environmental factors in the emergence of born‐global companies in Latin America

Prieto-Sánchez

Lucas

2021

Global Strategy Journal

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Research Summary This paper examines the effect of key cultural and economic factors on the emergence of born‐global (BG) companies. Such factors include the intentions and the growth aspirations of the entrepreneur, as well as the country's characteristics in terms of its income per capita and the complexity of its economic system. The analysis also highlights how the environment affects the importance of the aspirations to be BG. Our work expands the literature on BGs in Latin America by analyzing macroeconomic aspects and specific features of the entrepreneur and the environment as possible determinants of BG character. The results reveal that the entrepreneur's intentions and aspirations, along with environmental factors and the economic growth in Latin America, contribute to a firm's probability of becoming a BG company. Managerial Summary Firms that internationalize at an early stage of their life are known as born‐global (BG) companies. We analyze the influence that the key cultural factors of a company have on the creation of BG companies. Such factors include the entrepreneur's intentions and growth aspirations, in addition to various economic and environmental factors. The findings show that individual factors, in combination with economic growth, play a more important role than those factors related to the entrepreneur's innovativeness and the level of knowledge intensity associated with a country's export basket.

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Speed of Internationalization: Mutual Effects of Individual‐ and Company‐ Level Antecedents

Cited by 56 publications

References 70 publications

Rapid expansion of international new ventures across institutional distance

Rapid expansion of international new ventures across institutional distance

The microfoundations of subsidiary initiatives: How subsidiary manager activities unlock entrepreneurship

Incidence of cultural, economic, and environmental factors in the emergence of born‐global companies in Latin America

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