Man Hu, Zhenkuo Ding and Longda Li
The purpose of this paper is to investigate the impact of top management team (TMT) stability on firm internationalization speed, identifying the mediating role of corporate…
Abstract
Purpose
The purpose of this paper is to investigate the impact of top management team (TMT) stability on firm internationalization speed, identifying the mediating role of corporate social responsibility (CSR) and moderating the role of institutional distance.
Design/methodology/approach
Based on a sample of Chinese companies from 2005 to 2020. This article used ordinary least squares to empirically test the impact of TMT stability on firm internationalization speed.
Findings
Our main findings show that the more stable the TMT, the faster the internationalization speed of the enterprise. CSR mediates the influence of the TMT stability and firm internationalization speed, that is, the stable TMT is more willing to make decisions to assume more CSR based on the long-term sustainable development of the enterprise, thus influencing the firm internationalization speed. The greater institutional distance between the home country and the host country, the stronger the positive impacts of CSR on the firm internationalization speed.
Originality/value
This paper is of reference significance for enterprises to rationally formulate corporate internationalization strategies. We call on multinational enterprises (MNEs) to pay more attention to the TMT stability and the important role of CSR in the internationalization of enterprises in emerging economies.
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Zhenkuo Ding, Zhipeng Chen and Sheng Huang
This paper aims to examine the impact of top executives’ military experience on the internationalisation process of firms, as well as the boundary conditions of this impact.
Abstract
Purpose
This paper aims to examine the impact of top executives’ military experience on the internationalisation process of firms, as well as the boundary conditions of this impact.
Design/methodology/approach
The hypotheses are tested using 8,759 imbalanced panel samples in 1,718 China’s A-share listed firms.
Findings
The findings show that the military experience of top executives has a positive impact on the internationalisation process (scope, speed and rhythm) of firms. The managerial discretion strengthens the influence of top executives’ military experience on the internationalisation scope and speed but weakens its influence on the internationalisation rhythm.
Originality/value
The study contributes to the literature by testing the relationships that among military experience of top executives, firm internationalisation process and managerial discretion. The authors also help practitioners to become aware of the importance that the military experience of top executives have on firm internationalisation process, and managerial discretion can exert contingent influence on this relationship.
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Zhenkuo Ding, Xiaoying Yang, Sheng Huang and Xiaohua Ouyang
The aim of this paper is to investigate (1) whether the different dimensions of internationalization experience have different effects on internationalization speed? (2) And how…
Abstract
Purpose
The aim of this paper is to investigate (1) whether the different dimensions of internationalization experience have different effects on internationalization speed? (2) And how the degree of digitalization plays a moderating role in these relationships?
Design/methodology/approach
The authors test the hypotheses on a sample of 431 Chinese listed companies export data from 2007 to 2016, using multiple regression analysis.
Findings
The international expansion experience to developed economies will accelerate the internationalization speed of MNCs, while international expansion experience to emerging economies has an inverted U-shaped relationship with internationalization speed. The digitalization degree weakens the relationship between international experience and internationalization speed, whether it is international expansion experience to developed or emerging economies.
Originality/value
By decomposing the dimensions of international experience and considering the degree of digitalization as a new moderating variable, the paper helps to clarify the debate on the relationship between international experience and speed of internationalization, thus contributing to the internationalization speed literature and the digital technology perspective. Revealing the process of international experience affecting internationalization speed has implications for MNCs to achieve high-quality and rapid internationalization.
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Zhenkuo Ding, Meijuan Li, Xiaoying Yang and Wanjun Xiao
The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and…
Abstract
Purpose
The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and medium-sized enterprises (SMEs).
Design/methodology/approach
Based on the resource-based view (RBV) and the dynamic capability approach, this paper uses the resource-capability-performance framework to construct the theoretical model of this study and tests the theoretical model with the questionnaire survey data of 189 SMEs in mainland China.
Findings
Ambidextrous organizational learning has different effects on SMEs' performance in terms of survival performance and growth performance. Both exploitative learning and exploratory learning have positive effects on absorptive capacity, and absorptive capacity has positive influences on both the survival performance and growth performance of SMEs. Absorptive capacity plays different mediating roles in the relationships between ambidextrous organizational learning and SMEs' performance: absorptive capacity plays a partial mediating role in the relationship between exploratory learning and SME growth performance, while absorptive capacity plays complete mediating roles in other relationships.
Practical implications
Managers must stress the use of exploratory learning in order to promote SMEs' growth performance. However, to foster both absorptive capacity and SME performance in terms of survival and growth, managers must pay more attention to take advantage of ambidextrous organizational learning. Government as policymakers should create a favorable environment that enable SMEs to benefit much more from the deployment of ambidextrous organizational learning and absorptive capacity.
Originality/value
To the best of authors’ knowledge, this study is the first to theorize and test the mediating role of absorptive capacity in the linkage between ambidextrous organizational learning and SME performance in terms of survival and growth. Additionally, this study also is the first to provide empirical support for the impact of ambidextrous organizational learning on absorptive capacity among SMEs.
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Zhenkuo Ding, Man Hu and Sheng Huang
The purpose of this paper is to examine the influence of bilateral political relations on the completion stage premium of cross-border mergers and acquisitions(CSPCMA) and the…
Abstract
Purpose
The purpose of this paper is to examine the influence of bilateral political relations on the completion stage premium of cross-border mergers and acquisitions(CSPCMA) and the moderating roles of cultural distance, trade openness and the nature of firm ownership for this relationship.
Design/methodology/approach
Based on a sample of 401 cross-border mergers and acquisitions (M&A) conducted by Chinese companies from 1995 to 2019 in the Statistical Data Center (SDC), this article used weighted least squares (WLS) to empirically test the impact of bilateral political relations between countries on the CSPCMA.
Findings
The better the target country of entry’s bilateral political relations with China, the lower the premium of the transaction price paid by Chinese companies at the completion stage of cross-border M&A. Among the moderators, the study found cultural distance positively moderates the relationship between bilateral political relations between countries and CSPCMA. The degree of trade openness of the target country negatively moderates the relationship between bilateral political relations between countries and CSPCMA. The negative relationship between bilateral political relations between countries and CSPCMA is stronger when the acquirer is a state-owned enterprise (SOE).
Originality/value
The findings of this study not only add to the knowledge about the relationship between bilateral political relations and corporate cross-border M&A premiums, but also have managerial implications for Chinese corporate managers to sustainably reduce corporate cross-border M&A premiums.
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Sheng Huang, Yunxia Zhu, Kun Zhang and Zhenkuo Ding
The purpose of this paper is to critically review and synthesize the articles on determinants of international new venture (INV) performance to identify the research gaps in this…
Abstract
Purpose
The purpose of this paper is to critically review and synthesize the articles on determinants of international new venture (INV) performance to identify the research gaps in this area and develop a future research agenda.
Design/methodology/approach
Adopting a semi-systematic review approach with a fucus on using a vote-counting technique, this paper reviews 99 journal articles published between 1994 and 2019 to assess the determinants of INV performance.
Findings
The results indicate that the majority of the INV performance articles employ a clearly specified theoretical foundation, focus on INVs in developed economies and non-service sectors, identify numerous firm-level determinants of INV performance and use advanced statistical methods (e.g. structural equation modeling and panel data models). However, the research of INV performance is still limited by a lack of a broader integration of theories at different levels, inconsistent theoretical predictions and empirical results, knowledge gaps, and estimation biases (e.g. endogeneity).
Originality/value
INV performance has received increasing attention over recent decades, but this area is still characterized by fragmentation and inconsistency. This paper provides a comprehensive and nuanced review that synthesizes and clarifies our current knowledge on the determinants of INV performance, provides further discussion with deeper insights from both theoretical and methodological aspects, and points out some directions for future research.
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Zhenkuo Ding, Guangyu Ye, Sheng Huang and Man Hu
Despite extensive research into the effect of organizational learning processes on firm performance, it remains unclear how and when learning orientation influences the…
Abstract
Purpose
Despite extensive research into the effect of organizational learning processes on firm performance, it remains unclear how and when learning orientation influences the international performance of international new ventures (INVs). Accordingly, the purpose of this paper is to investigate how learning orientation drives the international performance of INVs.
Design/methodology/approach
Structural equation modeling is used to test the research model with questionnaire data from mainland Chinese INVs.
Findings
Results show that: learning orientation positively influences entrepreneurial bricolage; entrepreneurial bricolage positively influences the international performance of INVs; entrepreneurial bricolage plays a mediating role between learning orientation and international performance; degree of internationalization (DOI) weakens the effect of entrepreneurial bricolage on international performance.
Originality/value
This study makes a useful supplement to the INV literature by revealing that entrepreneurial bricolage plays a mediating role in the relationship between learning orientation and the international performance of INVs. It also contributes to the entrepreneurial bricolage literature by introducing entrepreneurial bricolage into the empirical research of INVs and identifying the learning orientation antecedents and performance consequences of entrepreneurial bricolage. In addition, this paper enriches the understanding of the boundary conditions for how entrepreneurial bricolage affects international performance showing that DOI has a negative moderating effect on the relationship between entrepreneurial bricolage and international performance.