TY - JOUR
T1 - Venturing Abroad by Emerging Market Enterprises
T2 - A Test of Dual Strategic Intents
AU - Luo, Yadong
AU - Zhao, Hongxin
AU - Wang, Yagang
AU - Xi, Youmin
N1 - Funding Information:
Emerging economy private firms are often institutionally restricted in accessing critical resources needed for international expansion and in embarking on outward FDI (Buckley et al. 2007). These firms face more difficulties than state-owned enterprises (SOEs) in obtaining outward FDI permits and project ratification from home government agencies in charge. In China, for instance, SOEs can receive stronger financial support from the government than private firms through low-or zero-interest loans and credit insurance from China’s Export-Import (EXIM) Bank. To overcome such institutional disadvantages and gain access to privileges enjoyed by SOEs, private firms often strategically merge or acquire (M&A) SOEs (Hoskisson et al. 2000). Mergers with and acquisitions
PY - 2011/8
Y1 - 2011/8
N2 - • This study presents a dual strategic intent perspective, elucidating that international venturing by emerging economy private firms is prompted by exploiting firm-specific advantages, as well as circumventing market imperfection residuals embedded in home country economic transformation. • Our analysis of 1,355 Chinese private enterprises shows that their ownership-specific advantages in areas such as corporate governance, inherited advantage from mergers and acquisitions of state-owned companies, and inward internationalization increase the level of outward internationalization. Market imperfection residuals, such as industry structure uncertainty, also propel the inclination for internationalization. • Two types of international experiences, one possessed by entrepreneurs and the other by private firms they lead, are positively associated with the proclivity for international venturing. Their moderating effect on the link between some ownership-specific advantages and venturing is negative, suggesting a substitutive role of experience in interacting with ownership-specific advantages with the process of internationalization.
AB - • This study presents a dual strategic intent perspective, elucidating that international venturing by emerging economy private firms is prompted by exploiting firm-specific advantages, as well as circumventing market imperfection residuals embedded in home country economic transformation. • Our analysis of 1,355 Chinese private enterprises shows that their ownership-specific advantages in areas such as corporate governance, inherited advantage from mergers and acquisitions of state-owned companies, and inward internationalization increase the level of outward internationalization. Market imperfection residuals, such as industry structure uncertainty, also propel the inclination for internationalization. • Two types of international experiences, one possessed by entrepreneurs and the other by private firms they lead, are positively associated with the proclivity for international venturing. Their moderating effect on the link between some ownership-specific advantages and venturing is negative, suggesting a substitutive role of experience in interacting with ownership-specific advantages with the process of internationalization.
KW - Emerging market firms
KW - International venturing
KW - Strategic intent
UR - http://www.scopus.com/inward/record.url?scp=84864419854&partnerID=8YFLogxK
U2 - 10.1007/s11575-011-0087-y
DO - 10.1007/s11575-011-0087-y
M3 - Article
AN - SCOPUS:84864419854
SN - 0938-8249
VL - 51
SP - 433
EP - 459
JO - Management International Review
JF - Management International Review
IS - 4
ER -