From M–P to MA–P: Multinationality alignment and performance

Powell, K. Skylar

doi:10.1057/jibs.2013.63

Cited by 58 publications

(47 citation statements)

References 70 publications

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“…The highly problematic multinationality construct can be refined by teasing out the experience-knowledge-strategic decision relationship, based on multiple task-, as much as country or context-, based experience dimensions (Hennart, 2011;Kirca et al, 2012;Verbeke & Brugman, 2009). Powell's (2014) claim that this relationship can only be understood by using firm-level definitions of multinationality that capture firm-specific investments in knowledge supports our contention. Greater care is needed in defining this and other key IB constructs and relationships.…”

Section: Implications For Key Ib Constructssupporting

confidence: 78%

“…Drawing on this research, we argue that in the three leading internationalization models -(1) internalization, (2) the internationalization process (IP) school and (3) institutional theory -the MNE decision-maker is underspecified. This contributes to IB's difficulties in delineating internationalization performance effects and the divergence between predicted and revealed internationalization choices (Brouthers & Hennart, 2007;Hennart, 2009;Pedersen & Shaver, 2011;Powell, 2014;Verbeke & Forootan, 2012). We contend these difficulties stem from the specification of knowledge and experience as firm-level drivers of heterogeneity in internationalization and performance, without explicit modeling of their microfoundations in individual-level cognition.…”

Section: Introductionmentioning

confidence: 99%

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Managerial cognition and internationalization

2015

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How do the senior decision-makers within a multinational enterprise (MNE) think through and determine an internationalization decision? Despite the cognitive foundations of several key constructs, standard internationalization models do not explicitly incorporate managerial cognition. We argue that the boundedly rational decision-maker is underspecified in international business models and this oversight contributes to weak empirical findings on experience, learning, internationalization strategy and MNE performance. Drawing on these extant models, we identify seven knowledge domains and interdependencies that may make up decision-makers' mental models. Granted rare access to senior executives and board members engaged in a foreign direct investment decision, we find substantial heterogeneity in the mental models these individuals used to make sense of the opportunity. This variance aligns with differences in individuals' experience along four dimensions: international breadth, depth, diversity and prior strategic decision-making. We argue these cognitive processes -how individuals exercise judgment about information search parameters, assessment and decision integration, and how decision teams coalesce in their thinking -are crucial microfoundations for modeling heterogeneity in firm-level internationalization strategies and performance.

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Section: Implications For Key Ib Constructssupporting

confidence: 78%

Section: Introductionmentioning

confidence: 99%

Managerial cognition and internationalization

2015

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“…Contrary to this prevalent problem-focused view of diversity in the international expansion literature, which highlights potential constraints based on country differences, greater diversity within a country portfolio may also be viewed as an opportunity and an asset for firms (e.g., Ely and Thomas 2001;Stevens et al 2008). Experience is a prime source of learning in organizations (Penrose 1959), and learning is fostered by diversity in experience (Barkema and Vermeulen 1998;Powell 2014a;Zellmer-Bruhn and Gibson 2006). The ability to learn from experience obtained in diverse countries may be the most important advantage of multinationality (Powell and Rhee 2013).…”

Section: Distance and Diversity Of International Expansion And Their mentioning

confidence: 99%

Internationalization Speed of Online Retailers: A Resource-Based Perspective on the Influence Factors

2016

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Numerous examples of online retailers that have internationalized shortly after their foundation indicate that they internationalize faster than and different from traditional brick-and-mortar retailers. This paper identifies and analyzes various influence factors on internationalization speed of online retailers and their impact on individual internationalization steps. Grounded in the resourcebased view, the paper examines the effects of imitability of an online shop, the presence of venture capitalists, the scope of the country portfolio and distance and diversity within the country portfolio on the internationalization speed of online retailers. A Cox proportional hazards model is used to explore the effects on speed and their variations over time. Drawing on a sample of 150 online retailers (1110 market entries in 47 country markets over 19 years), this study shows significant curvilinear effects of the imitability of an online shop, as well as of the diversity and scope of the existing country portfolio and linear effects of the distance of new country markets on the length of time until the next internationalization step.

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“…The I-R framework was first developed by Fayerweather (1960), distinguishing between "unification" (integration) and "fragmentation" (responsiveness) [2]. It was given analytical content by Prahalad (1975) and Doz (1976), subsequently published as Prahalad and Doz (1987).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

The international performance of standardizing and customizing Spanish firms

Almodóvar

2012

Multinational Business Review

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This paper aims to shed new light on the multinationality-performance debate by examining the performance of standardizing versus customizing firms from Spain. Design/methodology/approach -The reasons for variations in performance of exporting firms build on the industrial organization and resource-based views of strategy, which are shown to be linked to the integration (standardization) versus responsiveness (customization) framework of international business. The paper also incorporates the Uppsala model and the home region nature of international business activity. It develops hypotheses for both standardizing and customizing paths of international expansion for exporting firms. The paper uses the Survey on Business Strategies which has the support of the Ministry of Industry of Spain. This databank collects data of a representative sample of the Spanish manufacturing sector. The paper uses fixed-effects regression models for the period 2000-2008.Findings -The paper provides evidence on how firms with a strategy of product standardization follow an M curve-fourth degree polynomial relationship between the degree of internationalization (DOI) and performance. In contrast, product customization firms are observed to follow an inverted M curve relationship. Furthermore, by using both models, an appropriate level of internationalization can be suggested. Originality/value -The paper provides theoretical and empirical support for the different relationships of standardizing and customizing firms when expanding abroad. This paper is one of the first to find empirical support for an M curve relationship between the DOI and performance, and certainly is the first one testing and corroborating an inverted M curve.

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From M–P to MA–P: Multinationality alignment and performance

Cited by 58 publications

References 70 publications

Managerial cognition and internationalization

Managerial cognition and internationalization

Internationalization Speed of Online Retailers: A Resource-Based Perspective on the Influence Factors

The international performance of standardizing and customizing Spanish firms

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