Exploratory and exploitative OFDI from emerging markets: Impacts on firm performance

Tang, Qingqing; Gu, Flora F.; Xie, En; Zhan, Wenfeng

doi:10.1016/j.ibusrev.2019.101661

Cited by 45 publications

(48 citation statements)

References 80 publications

(199 reference statements)

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“…late and new entrants (latecomers, newcomers) that consider entering the markets abroad as a springboard giving them access to strategic resources on foreign markets, allowing them to free themselves from constraints on the home market [Mathews, 2006;Luo and Tung, 2007;Lou and Tung, 2017]. Moreover, it has been found that firms internationalize their activities not only to exploit the knowledge already available (knowledge exploitation), but also to acquire it (knowledge exploration) [Martin and Salomon, 2003;Penner-Hahn and Shaver, 2005;Park, 2011;Tang et al, 2020]. Support for the thesis on influence of internationalization on the innovativeness of firms is provided today by empirical research on both newly created, small firms (international new ventures, start-ups) as well as large international firms investing abroad.…”

Section: Outward Internationalization and Innovativenessmentioning

confidence: 99%

“…It is proved that both international new ventures, as well as subsidiaries of transnational corporations allow transferring knowledge not only from the home country to foreign subsidiaries (exploit knowledge), but also transfer it from the host country to the home country (acquire knowledge). The additional issue that is discussed here is the ability to transfer knowledge (knowledge transfer) and the ability to integrate knowledge (knowledge integration) on an international scale, so that the knowledge from different sources can be effectively used to increase innovativeness and competitiveness of a firm [Almeida, 1996;Zahra et al, 2000;Penner-Hahn and Shaver, 2005;Park, 2011;Lou and Tung, 2017;Tang et al, 2020].…”

Section: Outward Internationalization and Innovativenessmentioning

confidence: 99%

“…The subject of research is international, inter-organizational learning, including the ability to transfer knowledge, absorb it, and integrate it within an emerging network [e.g. Lane et al, 2001;Tsang, 2002;Tang et al, 2020].…”

Section: Outward Internationalization and Innovativenessmentioning

confidence: 99%

See 2 more Smart Citations

Learning by outward and inward internationalization and the outward/inward innovativeness of firms in Poland

Szymura-Tyc

2021

International Journal of Management and Economics

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Many studies raise the issue of relationships between internationalization and innovativeness, linking them with firms’ international competitiveness. However, very few of these studies focus on the influence of internationalization on innovativeness and regard the multifaceted nature of these two concepts. The study presented in this paper is based on a holistic approach to internationalization and innovativeness. It explores the influence of the outward (e.g. exporting, outward FDI) and inward (e.g. importing, inward FDI) internationalization on the outward (product and marketing) and inward (process and organizational) innovativeness of 274 firms in Poland, adopting formative variables and a correlations analysis. The key contribution of the research is that the outward internationalization is conducive to both the outward and inward innovativeness, while the inward internationalization supports only the inward innovativeness. It shows that learning by outward and inward internationalization supports innovativeness of firms, responsible for their international competitiveness. The findings might be unique for transition and emerging economies characterized with a low degree of internationalization and innovativeness, while the holistic approach is more universal, and might bring interesting results when applied to the research of highly advanced economies.

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Section: Outward Internationalization and Innovativenessmentioning

confidence: 99%

Section: Outward Internationalization and Innovativenessmentioning

confidence: 99%

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Learning by outward and inward internationalization and the outward/inward innovativeness of firms in Poland

Szymura-Tyc

2021

International Journal of Management and Economics

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“…Organizational capacity is a routine, or set of relevant routines, which when integrated with company flows, supports decision making (Winter, 2003). Therefore, it is necessary to group a wide base of tangible and intangible resources (Teece, 2007), in order to support the deliberate strategies necessary for competition (Chen, 2017), mainly in international markets (Tang et al, 2020).…”

Section: Rbv and Organizational Ambidexteritymentioning

confidence: 99%

“…The empirical effect of the exploration and exploitation dimensions on the growth in sales and profitability is still neglected (Mudambi & Swift, 2011;O'Reilly III & Tushman, 2013), particularly in relation to exporting companies located in countries with emerging economies (Tang et al, 2020). This theoretical-empirical gap (Junni et al, 2013;Campanella et al, 2020) provides opportunities for the emergence of new research, aiming to clarify the effect of relationships based on the theory of RBV (Barney, 1991(Barney, , 2001a.…”

Section: Introductionmentioning

confidence: 99%

Understanding the Logic of Organizational Ambidexterity

Guerra¹,

Camargo

2021

Pensamento Contemporâneo em Administração

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This article aims to investigate the effect of the exploration and exploitation dimensions on profitability and growth in sales by exporting companies. The resource-based view (RBV) theory supported the research findings. The survey involved 132 exporting companies in the state of Paraná/PR. Structural equation modeling was applied with the aid of the AMOS software (Analysis of Moment Structures). The results reinforce the multidimensional concept of organizational ambidexterity, characteristic of exporting companies inserted in a dynamic environment. Thus, it is necessary to develop new organizational skills and competences, aiming to develop structures and mechanisms related to organizational ambidexterity.

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Inward FDI and local firms' political connections in emerging markets: Evidence from China

Dong,

Ma,

Cui

2024

Global Strategy Journal

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Research SummaryResearch on the spillover effects of foreign direct investment (FDI) into emerging markets has primarily focused on local firms' productivity or innovation outcomes while overlooking their nonmarket strategies. Based on the resource dependence theory, we propose that inward FDI has a U‐shaped impact on local firms' political connections. This is because when FDI is at a low to medium level, its spillover benefits substitute for local firms' dependence on government resources. As FDI further increases, its competitive threats outweigh spillover benefits, driving local firms to a greater dependence on the government to neutralize the threats. This relationship is contingent on external and internal factors altering resource similarity between FDI and local government. Our analyses of Chinese listed firms support our predictions.Managerial SummaryThis study delves into how firms in emerging markets respond to inward FDI, particularly focusing on the role of political connections as a nonmarket strategy. Our findings offer valuable insights for both local firms and governments, providing a holistic view of the opportunities and challenges associated with inward FDI. We advise local firms to adopt a balanced approach by integrating both market and nonmarket strategies to maximize benefits, as relying solely on political connections may not be the most effective way to address the challenges posed by inward FDI. Additionally, our research emphasizes the importance of evaluating the resources provided by inward FDI against those provided by local governments, as the similarity of these resources alters the role of inward FDI as perceived by local firms.

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Exploratory and exploitative OFDI from emerging markets: Impacts on firm performance

Cited by 45 publications

References 80 publications

Learning by outward and inward internationalization and the outward/inward innovativeness of firms in Poland

Learning by outward and inward internationalization and the outward/inward innovativeness of firms in Poland

Understanding the Logic of Organizational Ambidexterity

Inward FDI and local firms' political connections in emerging markets: Evidence from China

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