Session 208

Internationalization Strategies and Performance

Track G

Date: Tuesday, October 6, 2015

Track X

Time: 17:30 – 18:45

Paper

Room: Governor's Square 11


Session Chair:

  • TBD

Title: Accelerated Internationalization and Performance: A Resource-Based View

Authors

  • Raquel García-García, Open University
  • Esteban García-Canal, University of Oviedo
  • Mauro Guillen, University of Pennsylvania

Abstract: We extend the literature on the relationship between speed of internationalization and performance by analyzing the effect of a rapid foreign expansion on value creation, as well as the boundary conditions for a profitable accelerated internationalization. We argue that the relationship between speed and value creation follows an inverted U-shaped pattern. We also predict that firms’ resources and capabilities help enhance the positive effect of a rapid internationalization on their market performance. On the contrary, higher needs for adaptation of multinationals’ strategies or the existence of restrictions to their future growth intensify its negative impact. We test and confirm our hypotheses by implementing Heckman’s two-step estimation method (1979) on a panel-data sample from 1986 to 2010 which comprises Spanish firms which were listed in 1990.

Title: Is there a Multinationality Effect? Exploring the Multinationality-Performance Relationship

Authors

  • Heather Berry, George Washington University
  • Aseem Kaul, University of Minnesota

Abstract: We examine the effect of multinationality on firm performance using detailed longitudinal data for a comprehensive sample of US manufacturing MNCs from 1989 to 2007, while accounting for the endogeneity of multinationality. We show that while firm performance has a positive effect on multinationality, multinationality has an insignificant effect on performance once we account for its endogeneity. Looking beyond an aggregate measure of multinationality, we show that firms do benefit from investments in foreign R&D activities and product transfers between subsidiaries. Overall, these findings offer fresh empirical insight into the relationship between multinationality and performance, providing a substantially more rigorous test of the relationship while opening the way for further exploration of the effect of foreign knowledge seeking and subsidiary networks on firm performance.

Title: MNC Strategies and Choice of Functional Language

Authors

  • Minyoung Kim, University of Kansas
  • Midam Kim, University of Kansas
  • Tailan Chi, University of Kansas
  • Ann Bradlow, Northwestern University

Abstract: An MNC’s choice of its functional language(s) for corporate communication is of strategic importance because this decision has strong implications for the implementation of its international expansion strategy. Drawing on psycholinguistics, we advance a conceptual framework for analyzing the trade-offs in the choice of functional languages and use a series of lab experiments to assess the relative efficiency of different functional language systems. Our empirical results shed light on the trade-offs in this strategic decision and potential remedies for the communication costs associated with the different choices. The insights that our study gains on the choice of functional languages and the measures for mitigating communication costs contribute to the microfoundations for both the established theory of MNCs and the emerging capability-based theory of MNCs.

Title: The Role of Dynamic Capabilities in Enhancing Performance Effects of Internationalization: Study of Indian Firms

Authors

  • Anish Purkayastha, Indian Institute of Management - Ahmedabad
  • Amit Karna, Indian Institute of Management Ahmedabad
  • Sunil Sharma, Indian Institute of Management - Ahmedabad
  • Dhiman Bhadra, Indian Institute of Management - Ahmedabad

Abstract: Based on the marginal benefits and marginal costs arising out of internationalization, its overall effect on performance is widely accepted to have a horizontal S-curve shape. The relationship has been tested across different empirical settings including those from emerging markets. In this paper, we argue that dynamic capabilities such as invest in resources and to deploy them appropriately enable firms to improve the positive effects of internationalization. We test our hypotheses using data on internationalization of 837 Indian firms between 1995 and 2014. Our results support the horizontal S-curve relationship including the high internationalization with a negative performance effect. We also find support for a moderating role of dynamic capabilities in enhancing the performance effects of internationalization.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 32: Microfoundations of international strategic management: Opportunism, trust, and bounded reliability
Sun: 09:45 – 11:00
Session 279: Formal theory in strategy - A primer
Sun: 11:15 – 12:30
Session 33: Methodological challenges in publishing international strategy research
Sun: 16:15 – 17:30
Session 209: Institutions and Emerging Markets
Sun: 17:45 – 00:00
Session 315: Global Strategy Business Meeting
Mon: 08:00 – 09:15
Session 126: Entry Mode & Cross-Border Acquisitions
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Mon: 13:45 – 15:00
Session 128: Emerging Markets
Mon: 16:45 – 18:00
Session 151: Networks and Collaborative Arrangements
Tue: 08:00 – 09:15
Session 129: Foreign Direct Investments
Tue: 11:00 – 12:15
Session 127: Institutional Context
Tue: 14:15 – 15:30
Session 266: Offshoring
Tue: 15:45 – 17:00
Session 130: International Diversification
Session 150: Location and Geography
Tue: 17:30 – 18:45
Session 208: Internationalization Strategies and Performance

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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