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The Role of the State in Explaining the Internationalization of Emerging Market Enterprises

Year: 2014

Type: article

Abstract: While the competitive advantages of firms from developed economies are well understood, knowledge of the advantages that enable emerging market enterprises ( EMEs ) to expand overseas remains limited. Our analysis goes beyond theorizing that focuses on firm resources, enhancing the understanding of how EMEs expand abroad by internalizing home‐country institutional advantages that extend beyond the firm boundaries. More specifically, we examine how the state and institutional idiosyncrasies in the home country help EMEs internationalize. We demonstrate that state ownership has a strong independent effect on the international expansion of EMEs . This effect, however, is contingent upon firms' own resources and other location‐ and industry‐specific forces pertaining to the market orientation of each subnational region and the institutional policies within a given industry.

Source: British Journal of Management

DOI: 10.1111/1467-8551.12059

Authors: Junjie Hong, Chengqi Wang, Mario Kafouros

Institutions: University of International Business and Economics, University of Nottingham, University of Leeds

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funders: British Academy, Engineering and Physical Sciences Research Council