Revisiting the relationship between product diversification and internationalization process in the context of emerging market MNEs

Published on Jun 1, 2017in Journal of World Business 3.99
· DOI :10.1016/j.jwb.2016.11.005
Georgios Batsakis5
Estimated H-index: 5
(Brunel University London),
Alexander T. Mohr15
Estimated H-index: 15
(Vienna University of Economics and Business)
Abstract
Abstract We examine the contingent effect of existing product diversification on the scope and speed of firms’ subsequent internationalization. Understanding these effects is important because prior research on the product—geographic diversification relationship assumes that the relevant decisions are taken simultaneously. This assumption does not apply to firms that consider international expansion only after having grown domestically through product diversification. Drawing on and extending transaction cost logics, we argue that product-diversified firms following geographically diverse and rapid internationalization incur higher transaction costs and are thus less likely to do so. We also find that international experience plays a moderating role.
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References108
Published on Jan 1, 1996
Brian Levy14
Estimated H-index: 14
,
Pablo T. Spiller41
Estimated H-index: 41
Foreword Douglass North Series editor's preface Preface List of contributors 1. A framework for resolving the regulatory problem Brian Levy and Pablo T. Spiller 2. Telecommunications regulation in Jamaica Pablo T. Spiller and Cezley I. Sampson 3. The United Kingdom: a pacesetter in regulatory incentives Pablo T. Spiller and Ingo Vogelsang 4. Chile: regulatory specificity, credibility of commitment, and distributional demands Ahmed Galal 5. The political economy of the telecommunications sector i...
272 Citations Source Cite
Published on Jan 1, 2014
Alvaro Cuervo-Cazurra31
Estimated H-index: 31
,
Ravi Ramamurti17
Estimated H-index: 17
Foreword 1. Introduction Alvaro Cuervo-Cazurra and Ravi Ramamurti Part I. EMNCs in Historical Perspective: What Is New?: 2. Theoretical debates on multinationals from emerging economies Yair Aharoni 3. What does history add to EMNC research? Andrew Godley Part II. Unique Capabilities of EMNCs: Do They Exist?: 4. Modern international business theory and emerging market multinational companies Alan M. Rugman and Quyen T. K. Nguyen 5. The limits of 'new' multinational enterprises: institutions, sys...
51 Citations Source Cite
Published on Sep 1, 2015in Journal of International Management 2.30
Chang Hoon Oh20
Estimated H-index: 20
(Simon Fraser University),
Timo Sohl1
Estimated H-index: 1
(Pompeu Fabra University),
Alan M. Rugman49
Estimated H-index: 49
(University of Reading)
Despite the importance of geographic expansion in the services sector, few studies have analyzed the relationships between regional diversification, product diversification and performance for services firms. Here, we focus on experiential learning benefits and managerial complexity to investigate whether and how firms in the retail sector may benefit by expanding their activities within and across regional boundaries. Using panel data of 65 large European retailers from 19 countries for the per...
18 Citations Source Cite
Published on Mar 21, 2011
Afonso Carlos Corrêa Fleury6
Estimated H-index: 6
(University of São Paulo),
Maria Tereza Leme Fleury18
Estimated H-index: 18
(Fundação Getúlio Vargas)
List of figures List of tables Introduction Part I. Developing the Analytical Framework and Contextualizing the Phenomenon: 1. Globalization and internationalization: the perspective of emerging countries 2. The analytical framework: the multinational as a network of competencies 3. The early-movers and the earliest internationalization theories 4. The rise of Japanese MNEs and their impact on the international landscape 5. Productive globalization, the restructuring of western MNEs and the rise...
78 Citations
Published on Jun 10, 2013
Javier Santiso11
Estimated H-index: 11
Foreword Mauro F. Guillen Introduction 1. A novus mundus 2. The decade of the multilatinas 3. The expansion of Brazilian multilatinas 4. The expansion of Spanish-speaking multilatinas 5. Multilatinas 2.0 6. China: a wake up call 7. Spain and Latin America 8. Spain as a Latin hub Conclusions Index.
14 Citations
Published on Aug 1, 2012in Global Strategy Journal 2.12
Alvaro Cuervo-Cazurra31
Estimated H-index: 31
(College of Business Administration)
I analyze how the study of developing country multinational companies (DMNCs) can help extend theory. The renewed interest in DMNCs has generated a ‘Goldilocks’ debate, with one camp arguing that the analysis of DMNCs is ‘hot’ and requires new theory, another camp arguing that it is ‘cold’ and no new theory is required, and a third camp arguing that it is ‘just right’ and it can be used to extend theory. I follow this third camp and argue that the unique conditions of developing countries influe...
224 Citations Source Cite
Published on Jul 1, 2013in International Journal of Management Reviews 6.49
James E. Clarke2
Estimated H-index: 2
(University of Queensland),
Rick Tamaschke6
Estimated H-index: 6
(University of Queensland),
Peter W. Liesch22
Estimated H-index: 22
(University of Queensland)
International experience, the experience that firms accrue from operating internationally, is a key concept in explaining firm internationalization. This paper reviews the conceptualization of international experience in the international business literature. It highlights how prior research has identified three dimensions of the international experience construct (length, scope and diversity), thereby demonstrating that international experience should be treated as a multidimensional construct....
66 Citations Source Cite
Published on Jan 1, 2014in British Journal of Management 3.06
Alexander T. Mohr15
Estimated H-index: 15
(University of Kent),
Fernando Fastoso6
Estimated H-index: 6
+ 1 AuthorsVikrant Shirodkar5
Estimated H-index: 5
(University of Sussex)
Drawing on regional strategy theory we complement the core effect of firm-specific advantages on the performance of multinational enterprises with an analysis of the performance consequences of home region concentration on firm performance. We also develop hypotheses regarding the effect of foreign entry timing, internationalization speed and international experience on the performance effect of home region concentration. We test our hypotheses against unique longitudinal data from a panel of 12...
18 Citations Source Cite
Published on Feb 1, 1995in Journal of Business Research 2.51
Jerry Haar8
Estimated H-index: 8
(University of Miami),
Marta Ortiz-Buonafina4
Estimated H-index: 4
(Florida International University)
Abstract Since the 1960s, many developing countries began a transition from import substitution to more outward-looking industrial strategies. The policy adopted by the Brazilian government during the period 1964-1985 emphasized an increase in the volume of exports with the objective of diversifying export markets and products. Competitiveness helped Brazil become a leading exporter of manufactured goods in Latin America, and this has also helped the country survive the debt crisis. This study a...
59 Citations Source Cite
Published on Mar 1, 2014in Journal of International Management 2.30
Thomas Hutzschenreuter16
Estimated H-index: 16
(WHU - Otto Beisheim School of Management),
Ingo Kleindienst7
Estimated H-index: 7
(WHU - Otto Beisheim School of Management),
Sandra Lange2
Estimated H-index: 2
(WHU - Otto Beisheim School of Management)
Distance has long been recognized as a major impediment in MNEs' international expansion. However, it still remains unclear: (1) If different psychic distance stimuli (PDS) constitute different sources of complexity and (2) how PDS affect MNE performance during international expansion. That is, the unconditioned argument that distance increases complexity needs further development, specifically, with regard to the nature of distance. In this study we distinguish between different PDS and provide...
55 Citations Source Cite
Cited By3
Published on Dec 1, 2018in Journal of Business Research 2.51
Georgios Batsakis5
Estimated H-index: 5
(Brunel University London),
Geoffrey Wood26
Estimated H-index: 26
(University of Essex)
+ 1 AuthorsSatwinder Singh11
Estimated H-index: 11
(Brunel University London)
Extant research indicates that the performance effect of international diversification is debatable, and to a great extent is contingent upon a number of firm- and country-specific characteristics. We argue that a critical factor determining the behaviour of the above relationship is the event of acquisition, and more specifically the conditions under which the acquisition takes place. Drawing on resource dependence theory, this paper examines the relationship between international diversificati...
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Published on Dec 1, 2018in International Business Review 2.75
Dirk Michael Boehe11
Estimated H-index: 11
(Massey University),
Alfredo Jiménez9
Estimated H-index: 9
(KEDGE Business School)
Abstract How does related or unrelated geographic diversification affect future related or unrelated product diversification of exporting firms, and vice-versa? This question addresses an unresolved debate, and it is important for firms in developing countries that seek to expand their product and geographical markets. Our study contributes to a current debate by highlighting the relevance of the temporal sequence and the relatedness of international diversification. Expanding the classic transa...
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