Search results

1 – 2 of 2
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 4 December 2024

Mengsha Wang and Huiqiang Ni

This study aims to analyze a novel phenomenon observed in recent years regarding the internationalization strategies of Chinese mobile internet e-commerce platform companies…

80

Abstract

Purpose

This study aims to analyze a novel phenomenon observed in recent years regarding the internationalization strategies of Chinese mobile internet e-commerce platform companies, which could extend traditional internationalization theories based on the experiences of companies from developed countries and traditional Chinese industries.

Design/methodology/approach

The traditional Uppsala model and imitation learning model of firm internationalization theory do not fully explain the motivations and behaviors behind new market entry in the internationalization practices of Chinese mobile internet companies. This study begins with the new internationalization practices of Pinduoduo, the fastest-growing mobile e-commerce platform in China, with the growth desperation theory as a perspective. By drawing on grounded theory methods, it explores the motivations and entry modes of internationalization within the broader context of recent Chinese mobile internet companies expanding abroad. This provides a theoretical explanation for traditional internationalization motivation and entry mode theories based on the new phenomenon of Chinese mobile internet platforms. Additionally, using Stata software and event study methodology, the financial performance and stock market performance of Pinduoduo’s new market entry behavior are analyzed.

Findings

It posits that when enterprises face pressures related to domestic market growth constraints, they tend to adopt strategic decisions for new market entry to alleviate growth pressures based on new growth opportunities and platforms. During the process of entering new markets, enterprises tend to adopt the “Copy from China” (CFC) model to efficiently replicate the successful experiences in the Chinese market. Market selection for new entries is determined based on psychological distance.

Research limitations/implications

First, the case study provides valuable insights for other mobile internet platforms, but these insights may not be directly transferable to companies in traditional industries; second, directly replicating well-developed business operations and marketing models from the Chinese market to new global markets might face cultural adaptability issues. How could firms balance the general principles of the Chinese internet model with the unique contexts of different global markets will be a crucial focus for future research.

Practical implications

Pinduoduo’s new market entry strategy represents a microcosm of Chinese mobile internet e-commerce platform enterprises’ international expansion choices, reflecting a significant phenomenon and future trend in Chinese business practices. Against the backdrop of widespread growth bottlenecks in current Chinese mobile internet e-commerce platform companies, adopting the CFC model to explore overseas markets in the future presents an opportunity for companies to expand new growth platforms, offering insights for current business practices.

Originality/value

This paper attempts to construct a new theoretical explanation for internationalization with unique characteristics of the Chinese mobile internet industry, based on the integration of “internationalization theories – internationalization practice – comprehensive research methods.” The study enriches strategic literature on the factors influencing new market entry for Chinese mobile internet e-commerce platform companies by exploring how increased growth pressures affect their strategic decisions to enter new markets. Meanwhile, it reveals a new market-entry-mode, the CFC (Copy from China) model, which reflects current trends in the practices of Chinese mobile internet e-commerce platform companies, providing practical insights for the international expansion activities of mobile internet companies in other industries.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Access Restricted. View access options
Article
Publication date: 26 April 2023

Huiqiang Ni, Wenlong Liu and Zhen Yang

Human capital is acquired not only through formal education (e.g. general skills) but also through training at the workplace. Prior studies have ignored the role of government…

267

Abstract

Purpose

Human capital is acquired not only through formal education (e.g. general skills) but also through training at the workplace. Prior studies have ignored the role of government subsidies explicitly for on-the-job training, which may influence firm training decisions and firm innovation performance. Hence, the authors establish a comprehensive theoretical framework to consider these issues and fill these gaps.

Design/methodology/approach

Considering the Chinese manufacturing firms listed in the Shanghai and Shenzhen Stock Exchange from 2010 to 2017, the authors investigate the influence of training investment on innovation performance by illustrating the role of human capital updating in enhancing firm innovation. The authors also explore serval mechanisms on how training investment influences innovation performance.

Findings

The authors propose that training investment promotes firm innovation performance, whereas government training subsidies negatively moderate this relationship. The authors also reveal how technicists' involvement and corporate culture mediate the relationship between training investment and innovation performance.

Practical implications

This study provides policy implications for stimulating firm innovation by improving learning and absorption ability, strengthening cultural identity and implementing system norms. Effective policies should be adopted to provide subsidies for on-the-job training of enterprises, particularly for firms with technical executives and firms in diversified life-cycle.

Originality/value

This work contributes to the literature on the role of on-the-job training in promoting firm innovation and reveals the crowding-out effect of subsidies. This study also shows the heterogeneous effects of training investment on firm innovation.

Details

Kybernetes, vol. 53 no. 9
Type: Research Article
ISSN: 0368-492X

Keywords

1 – 2 of 2
Per page
102050