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 language | English (US) |
|---|---|
| Journal | International Business Review |
| DOIs | |
| State | Accepted/In press - 2017 |
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Keywords
- Emerging economy enterprise
- International presence
- Strategic intent
ASJC Scopus subject areas
- Business and International Management
- Finance
- Marketing
Cite this
Strategic entry or strategic exit? International presence by emerging economy enterprises. / Sun, Jinyun; Wang, Stephanie L.; Luo, Yadong.
In: International Business Review, 2017.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Strategic entry or strategic exit? International presence by emerging economy enterprises
AU - Sun, Jinyun
AU - Wang, Stephanie L.
AU - Luo, Yadong
PY - 2017
Y1 - 2017
N2 - 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.
AB - 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.
KW - Emerging economy enterprise
KW - International presence
KW - Strategic intent
UR - http://www.scopus.com/inward/record.url?scp=85029771359&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85029771359&partnerID=8YFLogxK
U2 - 10.1016/j.ibusrev.2017.09.009
DO - 10.1016/j.ibusrev.2017.09.009
M3 - Article
JO - International Business Review
JF - International Business Review
SN - 0969-5931
ER -