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Purpose The conventional wisdom suggests that the lack of prior host country-specific experience and a higher institutional distance deter multinational enterprises (MNEs) from entering a foreign country. However, past studies report that Chinese MNEs show an unconventional risk-taking behavior choosing foreign locations, where they have no prior experience or there is an increased institutional distance. Drawing on the institutional theory, the purpose of this paper is to argue that Chinese Government official visits to the host country may act as a risk-reduction device, thus providing an explanation for such an unconventional behavior. Design/methodology/approach The authors develop two hypotheses regarding how Chinese Government official visits moderate the impact of host country-specific experience and institutional distance on the location choice of Chinese MNEs. The authors test the hypotheses using a sample of investment location decisions by Chinese MNEs in Latin America. Findings The authors find that government official visits mitigate the lack of firm’s prior host country experience. However, only high-level government visits reduce institutional distance. Originality/value The authors contribute to the international business literature by analyzing how home country government diplomatic activities may pave the way of host country institutional environment for foreign MNEs from that home country. In addition, the authors provide an additional explanation for the unconventional risk-taking behavior of Chinese MNEs. Finally, the authors also contribute to a better understanding of the decision-making process of emerging-market MNEs entering other emerging economies.

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Purpose This study aims to analyze the relationships between knowledge management, internationalization and ambidexterity, also exploring the influence of these variables on Spanish hotel chain performance. Hypotheses are proposed from the dynamic capabilities and knowledge-management views of the firm. Design/methodology/approach The research model was tested on a sample of 70 Spanish hotel chains applying variance-based structural equation modeling (partial least squares). Findings The results show that Spanish hotel chains that use knowledge management processes achieve a greater degree of internationalization and this increases their organizational ambidexterity. This study can also confirm a direct, positive and significant relationship between organizational ambidexterity and performance. Research limitations/implications This research shows that knowledge may be considered an essential resource to improve hotel firms’ results. Spanish hotel firms should manage their knowledge to stimulate international activity because this could enhance learning capabilities related to organizational ambidexterity and positively influence performance. Originality/value The present paper analyzes relationships between variables that had not previously been analyzed in a single model, including knowledge management, the degree of internationalization of hotel chains, ambidexterity and performance.

Decisions regarding firm internationalisation, especially when it comes to choosing which market entry mode to use, have been one of the most frequently discussed topics in academic literature in the last few decades. Many studies have been conducted from different perspectives, either focusing on one or several sectors or analysing companies from a specific country. Nevertheless, there are few studies dealing with the Chinese hotel industry. The aim of this study is to analyse the relationship between environmental and firm-specific factors and entry mode choice by the largest Chinese hotel chains. Using a sample of 185 entries, the results show that cultural distance, market attractiveness, firm international experience, asset intangibility, firm size and the number of Chinese outbound tourists visiting each country are determining factors of entry mode choice.