TY - JOUR
T1 - Rapid internationalization of emerging market firms—The role of geographic diversity and added cultural distance
AU - Jain, Naveen Kumar
AU - Pangarkar, Nitin
AU - Yuan, Lin
AU - Kumar, Vikas
N1 - Publisher Copyright:
© 2019 Elsevier Ltd
PY - 2019/12
Y1 - 2019/12
N2 - In this study, we examine drivers of internationalization speed of emerging market multinational enterprises who have been known to internationalize rapidly, even to culturally distant countries. Drawing on the organizational learning theory, we argue that, devoid of a pre-existing knowledge base before they begin their international expansion, these firms are unencumbered by the pathologies and traps that are likely to slow a firm with pre-existing knowledge. We posit inverted U-shaped relationships between geographic scope and added cultural distance on the one hand, and internationalization speed of Indian software multinationals, on the other hand. We also hypothesize a moderating effect of the regularity of added cultural distance on the relationship between added cultural distance and internationalization speed. Our analyses of 650 internationalization expansions of 32 largest Indian software firms over a ten-year period support our hypotheses.
AB - In this study, we examine drivers of internationalization speed of emerging market multinational enterprises who have been known to internationalize rapidly, even to culturally distant countries. Drawing on the organizational learning theory, we argue that, devoid of a pre-existing knowledge base before they begin their international expansion, these firms are unencumbered by the pathologies and traps that are likely to slow a firm with pre-existing knowledge. We posit inverted U-shaped relationships between geographic scope and added cultural distance on the one hand, and internationalization speed of Indian software multinationals, on the other hand. We also hypothesize a moderating effect of the regularity of added cultural distance on the relationship between added cultural distance and internationalization speed. Our analyses of 650 internationalization expansions of 32 largest Indian software firms over a ten-year period support our hypotheses.
KW - Cultural distance
KW - Emerging market firms
KW - Geographic diversity
KW - India
KW - Internationalization
KW - Software firms
KW - Speed
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U2 - 10.1016/j.ibusrev.2019.101590
DO - 10.1016/j.ibusrev.2019.101590
M3 - Article
AN - SCOPUS:85072023932
SN - 0969-5931
VL - 28
JO - International Business Review
JF - International Business Review
IS - 6
M1 - 101590
ER -