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Venturing Abroad by Emerging Market Enterprises

A Test of Dual Strategic Intents

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Abstract

  • 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.

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Authors and Affiliations

  1. Department of Management, School of Business, University of Miami, Miami, USA

    Yadong Luo

  2. Boeing Institute of International Business, John Cook School of Business, Saint Louis University, St. Louis, USA

    Hongxin Zhao

  3. School of Management, Xi’an Jiaotong University, Xi’an, China

    Yagang Wang &  Youmin Xi

  4. Sun Yat-Sen Business School, Sun Yat-Sen University, Guangzhou, China

    Yadong Luo

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  1. Yadong Luo
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  2. Hongxin Zhao
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  3. Yagang Wang
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  4. Youmin Xi
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Correspondence to Yadong Luo.

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Luo, Y., Zhao, H., Wang, Y. et al. Venturing Abroad by Emerging Market Enterprises. Manag Int Rev 51, 433–459 (2011). https://doi.org/10.1007/s11575-011-0087-y

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