Open Access
Speed of internationalization: conceptualization, measurement and validation
(Elsevier, 2014) Chetty, Sylvie; Johanson, Martin; Martín Martín, Óscar; Gestión de Empresas; Enpresen Kudeaketa
To better manage and understand the speed at which firms internationalize, managers and scholars need an appropriate conceptualization and a reliable and valid measure of speed of internationalization. The literature, however, adopts a limited temporal perspective and usually conceptualizes and measures it as the time it takes the firm to start to internationalize. This unidimensional view neglects the central aspects of internationalization that create speed. Our purpose is, therefore, to propose a new, theory-driven – embedded in the main concepts of the original Uppsala model – and multidimensional conceptualization and operationalization. The main contribution is that we develop this conceptualization and measure.
Open Access
Dual business relationships, opportunity knowledge, and new product development: a study on returnee young ventures
(American Marketing Association, 2019) Bai, Wensong; Johanson, Martin; Martín Martín, Óscar; Gestión de Empresas; Enpresen Kudeaketa
The effects on innovation of the dual embeddedness of returnee young ventures (RYVs) in both domestic and international networks of relationships and knowledge contexts are important for value creation, growth, and success of these firms and embody a unique research opportunity. Drawing on a framework combining a business relationship perspective and the knowledge-based view, the authors propose that RYVs take advantage of business relationships and opportunity knowledge from both international and domestic markets to nurture their innovation. They test their model on a sample of 200 RYVs in China. The findings reveal that business relationships are essential for acquiring knowledge about technological and business opportunities, though only international opportunity knowledge and domestic business relationships positively influence new product development. In addition, the interaction between international and domestic business relationships constrains firms' capacity for obtaining international opportunity knowledge. This study offers insights into how the trade-offs between dual relationships and subsequently sourced knowledge contribute to new product development in emerging markets, and it extends the discussion on the paradox view of business relationships with geographically dispersed actors.
Open Access
Country distance (COD): development and validation of a new objective measure
(Wiley, 2014) Martín Martín, Óscar; Drogendijk, Rian; Gestión de Empresas; Enpresen Kudeaketa
We propose a multidimensional and objective measure, Country Distance (COD), as a comprehensive measure of distance between countries. Although the literature has called for a measure like this, in particular to support international decision-making by SMEs, the research carried out so far has relied on measures of limited focus. We use Partial Least Squares (PLS) to develop the COD index and investigate the relative importance of its three dimensions: socio-economic development, physical, and cultural and historical distance. We externally validate the measure in an analysis of the international market selection decisions of a sample of SMEs and country-level export flows.
Open Access
Dual embeddedness, influence and performance of innovating subsidiaries in the multinational corporation
(Elsevier, 2014) Ciabuschi, Francesco; Holm, Ulf; Martín Martín, Óscar; Gestión de Empresas; Enpresen Kudeaketa
This study adopts a business network view to study the effects of subsidiary embeddedness on both subsidiary influence within the MNC and innovation-related business performance. Through Structural Equation Modeling we analyze subsidiary relationships connected to 85 innovation projects. The results show that external and corporate embeddedness are complementary contexts, although they affect subsidiary influence and performance differently. Whereas external embeddedness directly affects innovation-related business performance, corporate embeddedness strengthens the subsidiary’s influence within the MNC, which in turn positively relates to performance. Moreover, as the study also finds that external and corporate embeddedness are positively associated, it stresses the issue of simultaneously balancing both external and corporate relationships (i.e. dual embeddedness) to nurture innovation projects.
Open Access
Relevant dimensions and contextual weights of distance in international business decisions: evidence from Spanish and Chinese outward FDI
(Elsevier, 2015) Drogendijk, Rian; Martín Martín, Óscar; Gestión de Empresas; Enpresen Kudeaketa
We investigate how distance and different dimensions of distance between countries explain the outward FDI of firms according to distinct home country contexts. We identify three important dimensions of country distance: socio-economic development distance, cultural and historical distance and physical distance. We then empirically explore whether these dimensions receive different weights when explaining the location of FDI depending on its origin by comparing the outward FDI of China and Spain using partial least squares-based structural equations modelling (SEM-PLS). We find that although country distance significantly explains the FDI of both countries, the weights of the three dimensions of distance depend on the home country context. More specifically, we find that all three dimensions of distance explain the direction of Spanish investments, whereas only cultural and historical distance significantly explains Chinese outward FDI. Our research advances the understanding of distance between countries, the dimensions of distance, and how context influences the impact of the dimensions of distance.
Open Access
The incremental expansion of Born Internationals: a comparison of new and old Born Internationals
(Elsevier, 2015) Johanson, Martin; Martín Martín, Óscar; Gestión de Empresas; Enpresen Kudeaketa
Not much is known about the characteristics of “early internationalizers” in their later life and there is scant empirical literature – and an acute need for quantitative studies – about the features of Born Internationals (BIs) after their first years of operation. In this context, we aim to describe the later life of BIs and determine whether some of the critical aspects of internationalization are visible in their post-birth features. This study contributes to the literature on internationalization by providing quantitative evidence on key post-birth characteristics of BIs. Guided by five research hypotheses, it explores changes in the BIs’ profile and tests whether or not there are differences between newer BIs and older ones in a sample of SMEs. The results support the basic cumulative dynamics proposed by the incremental school in terms of international business experience, international commitment, and level of internationalization, which implies that these factors can to some extent be viewed as driving forces in the internationalization process of BIs.