Emerging Market Multinational Companies and Internationalization: The Role of Home Country Urbanization

Saul Estrin, Bo B. Nielsen*, Sabina Nielsen

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelpeer review

Abstrakt

We develop a multilevel theoretical framework for investigating the role of home country urbanization for emerging market multinational companies' (EMNCs) international expansion. We propose that more urbanized home environments directly increase EMNC's proclivity to internationalize and moderate the effects of firm intangible and tangible resources. The empirical counterpart studies 592 EMNCs from 18 different countries in 2010 and an unbalanced panel of a subsample of these firms over the period 2006–2010. Our hypotheses are confirmed in both datasets. We find that while urbanization complements firm financial resources when expanding abroad, it appears to substitute to some extent for internal R&D capabilities. Our findings further our understanding of the drivers of internationalization of EMNCs.
OriginalsprogEngelsk
TidsskriftJournal of International Management
Vol/bind23
Udgave nummer3
Sider (fra-til)326-339
Antal sider14
ISSN1075-4253
DOI
StatusUdgivet - 2017

Emneord

  • Emerging market multinationals
  • Internationalization
  • Home country effects
  • Urbanization
  • Financial strength
  • Cross-classified
  • Multilevel modeling

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