Strategic entry or strategic exit? International presence by emerging economy enterprises

Jinyun Sun, Stephanie L. Wang, Yadong Luo

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

By proposing an integrated strategic choice framework, we theorize the distinctive dynamics of international expansion by emerging economy enterprises. Specifically, we explicate how these firms build international presence based on combined strategic entry (i.e., prompted by internal capabilities such as innovation and diversification) and strategic exit (i.e., pushed out by external handicaps at home such as institutional obstacles and market competition). Further, a firm's cooperative ties with foreign multinationals in the former's home country fortify the strategic entry intent, while ties with home government institutions weaken the strategic exit intent. We also demonstrate that building international presence helps bolster firm performance, highlighting the economic catch-up consequence of international expansion. Analyses of a two-year imbalanced panel data of 2136 firms statistically support our hypotheses.

Original languageEnglish (US)
Pages (from-to)418-430
Number of pages13
JournalInternational Business Review
Volume27
Issue number2
DOIs
StatePublished - Apr 2018

Keywords

  • Emerging economy enterprise
  • International presence
  • Strategic intent

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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