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‘2R-Based View’ on the Internationalization of Service MNEs from Emerging Economies: Evidence from China

Management International Review volume 59, pages 643–673 (2019)Cite this article

Abstract

This study combines the resource-based view of the firms and region-based view of the strategy (i.e., a 2R-based view) to shed light on the crucial roles of firm-specific resources and region-specific heterogeneity within the context of China, a large emerging economy. The study explains the variations in internationalization levels among service multinational enterprises (MNEs). Based on a large sample analysis of Chinese service MNEs, our findings demonstrate that MNEs with good cost efficiency and few intangible resources exhibit great propensity for international expansion, thereby achieving high internationalization level. Chinese service MNEs located in a coastal region or a region with well-developed institutional environments achieve high internationalization level as well. These findings support a U-shaped relationship between the internationalization of service MNEs and their performance. Our research findings confirm our predictions from the 2R-based view, which provides valuable insight into the regional development and international strategy of MNEs from emerging economies.

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Fig. 1

Notes

  1. We also ran fixed-effects models as a robustness check. The results for the fixed-effects models were generally consistent with the random-effects results. Detailed information on the fixed-effects models is available upon request.

  2. Detailed empirical results are available upon request.

  3. As a post hoc analysis, we tested and found no support for an S-shaped link between internationalization and performance for Chinese service MNEs. The results are available upon request.

  4. The detailed empirical results for the subsamples are available upon request.

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Acknowledgements

This work was supported by Hankuk University of Foreign Studies Research Fund.

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  1. Business School, Shandong Normal University, Jinan, China

    Shufeng Simon Xiao

  2. College of Business, Hankuk University of Foreign Studies, Seoul, South Korea

    Shufeng Simon Xiao, Yong Kyu Lew & Byung Il Park

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  1. Shufeng Simon Xiao
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Xiao, S.S., Lew, Y.K. & Il Park, B. ‘2R-Based View’ on the Internationalization of Service MNEs from Emerging Economies: Evidence from China. Manag Int Rev 59, 643–673 (2019). https://doi.org/10.1007/s11575-019-00391-w

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Keywords

  • Internationalization
  • Emerging economies
  • Service MNEs
  • Resource-based view
  • Region-based view
  • China