and Key Results■ Researchers have recently suggested that on average the relationship between internationalization and performance will be S-shaped. In this study, we test this pattern investigating 87 Swiss multinational companies in manufacturing industries over an 8-year period (1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005); N = 696).■ Large Swiss companies cover the full range of internationalization, with many measuring over 90 percent foreign sales-to-total sales. This allows for a unique test of performance levels at very high degrees of internationalization.■ We find that in the case of Swiss MNCs the S-curve is shifted to the right, and preceded by an initial stage of increasing performance.■ We find that companies operating at extreme (very high) degrees of internationalization face lower average performance and higher average performance variation.
PurposeThe purpose of this paper is to investigate key contingencies affecting the internationalization of young ventures, and to shed light on early internationalization's implications for organizational survival and growth.Design/methodology/approachA previously suggested conceptual framework is tested based on a quantitative study of UK firms before explorative analysis takes the analysis further.FindingsContrary to the model suggested by Sapienza et al. that internationalization is of increasing importance at young ventures' founding stage, no such indications were found in this study. Further statistical tests revealed interesting insights into the relationship between other organizational factors and a young firm's survival and growth prospects.Research limitations/implicationsThe empirical results suggest that internationalization is a largely overrated theoretical factor as far as young ventures' short‐term survival and performance are concerned. As internationalization paths differ contingent upon country of origin and other factors, further empirical tests are needed beyond the UK sample.Originality/valueEmpirical tests of previously suggested conceptual frameworks are needed to advance the body of knowledge on successful internationalization. Next to this initial test, further exploratory analysis suggests a refined framework.
Purpose – The purpose of this paper is to identify factors that influence so-called born-again global firms’ internationalization behavior. Specifically, this article explores the following questions: why do mature, domestically focused firms suddenly turn into born-again global firms, how do they do so and what elements are needed for born-again global firms to be sustainable. Design/methodology/approach – Using an established international entrepreneurship model as a starting point, we extract relevant factors for a conceptual framework on born-again global firms’ internationalization activities. Case study research among a cross-sectional sample of born-again global firms is being applied for that purpose. Findings – Driven by the insufficient size of their domestic market, born-again global firms typically embark on internationalization after a generational change at the chief executive officer level. Throughout their internationalization journey, they flexibly adapt toward new needs of their foreign environments. Due to their idiosyncratic characteristics, born-again global firms deserve consideration as a separate group of research objects in the field of international entrepreneurship. Research limitations/implications – The investigated sample of case study firms was drawn across a variety of industries. As such, industry-specific conditions could not be observed and the findings from case study research run the risks of being generalized too broadly. In addition, the accuracy of the case study results may suffer from a certain degree of hindsight bias as the internationalization event took place in the past. Practical implications – Openness to learning from other markets and the flexibility to modify products according to client needs strengthen born-again global firms’ competitiveness. To endure, born-again global firms have to be innovative in adapting to changes, which makes it easier for them to launch their products in new markets. Originality/value – To date, international entrepreneurship has focused on the activities of small and newly established firms, largely neglecting the behavior of somewhat larger and established firms in traditional sectors. This study shows that established companies can exhibit the same innovative, proactive and risk-seeking behavior across borders as new ventures do. Despite their strongly rooted structures, strategies and cultures, born-again globals can flexibly adapt to new environments.
Today's corporations face many demands from a plethora of different stakeholders, which are often incongruous. While shareholders demand a decent return on their investment, employees demand safe and well-paid jobs, communities stress upon their tax revenues and public pressure groups call for more social and environmental responsibility. Corporations thus require a great deal of corporate diplomacy to prioritise and – where necessary and possible – reconcile these different demands. This paper describes a framework for managerial/corporate attitudes and external pressure levels. Four case studies illustrate varying attitudes towards corporate diplomacy determine the outcome of controversies over genetically modified food products.
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