Chinese multinationals’ fast internationalization: Financial performance advantage in one region, disadvantage in another

Heechun Kim*, Jie Wu, Douglas A. Schuler, Robert E. Hoskisson

*Corresponding author for this work

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Our study reveals the financial performance implications of the speed at which Chinese multinational enterprises (CMNEs) expand into intra-regional versus inter-regional host countries. In doing so, we propose a framework that integrates internationalization speed and home regionalization literatures. Using data from 767 publicly listed CMNEs from the years 2002 to 2014, we discover that the faster the intra-regional internationalization, the better the firm’s financial performance, whereas faster inter-regional internationalization demonstrates a poorer financial performance. We also find that fast-mover CMNEs’ technological and marketing resources are valuable in intra-regional host countries, but vulnerable in inter-regional host countries. We discuss the implications of these findings for studies of the Uppsala internationalization process model and regional MNEs.

Original languageEnglish
Pages (from-to)1076-1106
Number of pages31
JournalJournal of International Business Studies
Volume51
Issue number7
Early online date9 Nov 2019
DOIs
Publication statusPublished - 30 Sep 2020

Keywords

  • Chinese multinational enterprises
  • fast-mover (dis)advantages
  • financial performance
  • home regionalization
  • internationalization speed

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