Rapid internationalization of emerging market firms—The role of geographic diversity and added cultural distance

Naveen Kumar Jain, Nitin Pangarkar, Lin Yuan, Vikas Kumar*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

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.

Original languageEnglish
Article number101590
JournalInternational Business Review
Volume28
Issue number6
DOIs
Publication statusPublished - Dec 1 2019

Keywords

  • Cultural distance
  • Emerging market firms
  • Geographic diversity
  • India
  • Internationalization
  • Software firms
  • Speed

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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