First-mover Strategy and Performance of Late Movers among MNEs in an Emerging Market

We investigate how strategic resource decisions—concerning slack resources and strategic marketing ambidexterity—influence the relationship between internationalization and firm performance of emerging market firms. Based upon the resource-based view, we synthesize two dominant, yet divergent, perspectives that explain the respective resource slack advantages and liabilities in the internationalization literature: the flexible capacity and the efficient capacity perspectives. We also explore the moderating role of strategic marketing ambidexterity which comprises a bundle of marketing activities covering both exploitation-dominant actions and exploration-dominant actions. We empirically examine our hypothesized relationships with data from a sample of 1,683 firm-year observations for the period between 2005 and 2018 and find that distinct forms of resource slacks have contrasting effects on the relationship between internationalization and performance. Our results provide strong evidence for positive moderation effect of unabsorbed slack resources and a negative moderation effect of absorbed slack resources on the internationalization-performance relationship. We also indicate nonsignificant moderating effect of strategic marketing ambidexterity, demonstrating that internationalization attains higher firm performance regardless of its exploration-dominant or exploitation-dominant strategic emphasis in emerging economies.

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Political ties and performance of multinational corporations in Vietnamese emerging market

Accounting ◽

10.5267/j.ac.2020.3.002 ◽

2020 ◽

pp. 241-258 ◽

Cited By ~ 1

Author(s):

An Thi Hong Nguyen ◽

Phuong V. Nguyen ◽

Minh Ngoc Tuong Ly

Keyword(s):

Multinational Corporations ◽

Emerging Market ◽

Political Ties ◽

And Performance

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How do resources and diversification strategy explain the performance consequences of internationalization?

Management Decision ◽

10.1108/md-10-2013-0527 ◽

2014 ◽

Vol 52 (5) ◽

pp. 897-915 ◽

Cited By ~ 17

Author(s):

Yan Chen ◽

Yiwei Jiang ◽

Chengqi Wang ◽

Wen Chung Hsu

Keyword(s):

Emerging Market ◽

Product Diversification ◽

Firm Resources ◽

Diversification Strategy ◽

Data Set ◽

Content Type ◽

Listed Firms ◽

Performance Consequences ◽

Performance Effects ◽

And Performance

Purpose – The purpose of this paper is to examine how firm resources and diversification strategy explain the performance consequences of internationalization of emerging market enterprises. Design/methodology/approach – The paper conducts a regression analysis by using a novel panel data set comprising of 685 listed Chinese firms over the period of 2008-2011. Findings – The results show that the relationship between internationalization and performance is inverse U-shaped. Further, marketing resources play a greater role in enhancing the performance effects of internationalization than technological resources do. Related product diversification enhances the performance effects, while unrelated product diversification does the contrary. Research limitations/implications – The study focusses on listed firms in one country, and as a result, the findings cannot be generalized to non-listed firms and firms in other countries. Practical implications – This paper offers guidelines for international managers to improve performance of internationalization by developing a particular type of resources and diversification strategy. Originality/value – This paper extends the literature on the functional form of the internationalization-performance relationship, and further suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and focusses on firm-specific resources and strategies that may facilitate or constrain the performance effects of internationalization.

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Evolving user needs and late-mover advantage

Strategic Organization ◽

10.1177/1476127016648498 ◽

2016 ◽

Vol 15 (1) ◽

pp. 67-90 ◽

Cited By ~ 5

Author(s):

Adrien Querbes ◽

Koen Frenken

Keyword(s):

User Needs ◽

Nk Model ◽

Trade Offs ◽

Managerial Implications ◽

First Mover ◽

Over Time ◽

Late Movers

We propose a generalized NK-model of late-mover advantage where late-mover firms leapfrog first-mover firms as user needs evolve over time. First movers face severe trade-offs between the provision of functionalities in which their products already excel and the additional functionalities requested by users later on. Late movers, by contrast, start searching when more functionalities are already known and typically come up with superior product designs. We also show that late-mover advantage is more probable for more complex technologies. Managerial implications follow.

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Exploring the nonlinear effect of size on profitability: evidence from an insurance brokerage industry in an emerging market

African Journal of Economic and Management Studies ◽

10.1108/ajems-05-2020-0228 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Richard Angelous Kotey ◽

Richard Akomatey ◽

Baah Aye Kusi

Keyword(s):

Nonlinear Effect ◽

Emerging Market ◽

Empirical Studies ◽

Random Effect ◽

Generalized Method Of Moments ◽

Ordinary Least Squares ◽

Growth Strategies ◽

Content Type ◽

And Performance ◽

Brokerage Firms

PurposeThis study examines the possible nonlinear effect of size on stakeholder and shareholder profitability in the Ghanaian insurance brokerage industry.Design/methodology/approachThis study employs a panel dataset of 64 Ghanaian insurance brokerage firms spanning 2011–2015. Static [ordinary least squares (OLS), fixed effect and random effect and dynamic (two-step generalized method of moments (GMM))] estimation techniques are employed to analyze the data.FindingsThe study finds the existence of both economies and diseconomies of scale and scope theories in the Ghanaian insurance brokerage industry confirming the existence of nonlinear nexus between size and performance. This finding is consistent for both stakeholder and shareholder profit performance. Thus, the results show that size improves profitability of insurance brokerage firms, but beyond a certain threshold, the relationship turns negative as size negatively affects profitability.Practical implicationsThe research findings have implications for both policy and research; the study recommends that Ghanaian brokerage managers should understand that not all growth is good and exercise a duty of care when applying growth strategies by monitoring size effect on performance so as not to go beyond the inflection point. Further research can be done to examine this effect in other contexts, timeframes and jurisdictions.Originality/valueThis research is unique in that it employs a panel dataset consisting of 96% of insurance brokerage firms in Ghana whilst employing both static and nonstatic regression models to examine the effect of size. The research analysis adopted is robust, and the findings are significant. Also, the lack of empirical studies on the operations and dealings of auxiliary institutions such as the insurance brokerage firms adds value to this research.

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Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?

Administrative Sciences ◽

10.3390/admsci8040064 ◽

2018 ◽

Vol 8 (4) ◽

pp. 64 ◽

Cited By ~ 1

Author(s):

Hien Thi Ngoc Huynh ◽

Phuong V. Nguyen ◽

Khoa T. Tran

Keyword(s):

Emerging Market ◽

Developed Countries ◽

Organizational Slack ◽

Optimum Level ◽

International Expansion ◽

Manufacturing Enterprises ◽

Long Run ◽

Third Stage ◽

And Performance ◽

Using Data

This paper aims to investigate the three-stage theory of international expansion in the long run from the perspective of firm behavior. Although this topic has been mostly explored using data from developed countries, this paper aims to fill the research gap in an emerging market by using an extensive unbalanced panel data of 12,704 unlisted Vietnam manufacturing enterprises from the General Statistics Office during 2007 to 2012. The findings illustrated a significant S-shaped relationship between internationalization and performance. Notably, the results depict significantly moderating effects of both high-discretion slacks and low-discretion slacks on the internationalization–performance relationship across three stages of global expansion as an enterprise enhances this relationship in the first and third stage although this worsens it in the middle stage. The empirical results suggest that firms should determine the optimum level of internationalization and slacks in addition to balancing their costs with their real gains.

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Dominant Institutions: An Institutional Model of First Mover Strategy and Performance

SSRN Electronic Journal ◽

10.2139/ssrn.568004 ◽

2004 ◽

Author(s):

Krishna Udayasankar ◽

Shobha S. Das

Keyword(s):

And Performance ◽

Institutional Model ◽

First Mover

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The impact of characteristics of intra-organizational environment on entrepreneurial marketing intensity and performance in Egypt

Journal of Entrepreneurship in Emerging Economies ◽

10.1108/jeee-08-2019-0115 ◽

2020 ◽

Vol 12 (5) ◽

pp. 621-642

Author(s):

Abeer Mahrous ◽

Mohamed Ashraf Genedy ◽

Morris Kalliny

Keyword(s):

Emerging Markets ◽

Organizational Performance ◽

Emerging Market ◽

Planning Horizon ◽

Organizational Environment ◽

Content Type ◽

Entrepreneurial Marketing ◽

And Performance ◽

Marketing Intensity ◽

The Impact

Purpose The purpose of this paper is to contribute to the entrepreneurial marketing (EM) paradigm by empirically investigating the relationship between intra-organizational environment, EM intensity (EMI) and organizational performance in an emerging market context. Specifically, the paper identifies the elements of the intra-organizational environment that enhances EMI and also examines the impact of EMI on organizational performance. Design/methodology/approach The data were collected from large-sized companies in Egypt. Data were analyzed by using path analysis on Smart-PLS. Findings The findings suggest that the characteristics of the intra-organizational environment that support developing and increasing EMI in large-sized companies in emerging markets are cooperative competency, deep locus of planning and institutional support. Also, it was found that the long planning horizon hinders EMI. Finally, it was found that EMI is positively related to organizational performance and competitive advantage. Practical implications The study provides guidelines for managers of large-sized organizations, especially in emerging economies, on how to develop the intra-organizational environment to enhance EMI. Originality/value The study of EMI received little or no attention in previous research. Also, there is a paucity of empirical research on the impact of the intra-organizational environment on EMI and also on the impact of EMI on the organizational performance of large-sized companies in emerging markets. Therefore, the results of this research are a step toward filling these gaps.

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Debt financing and firm performance: The moderating role of board independence

Journal of General Management ◽

10.1177/0306307019886829 ◽

2020 ◽

Vol 45 (3) ◽

pp. 141-151

Author(s):

Hanh Song Thi Pham ◽

Duy Thanh Nguyen

Keyword(s):

Emerging Market ◽

Debt Financing ◽

Board Independence ◽

Data Set ◽

Listed Firms ◽

Negative Effect ◽

And Performance ◽

The Relationship ◽

Moderating Role

This article investigates the moderating role of board independence in the relationship between debt financing and performance of emerging market firms. We have used an empirical model in which the firm’s accounting profitability is a dependent variable and the independent variables are debt financing, board independence, the interaction variable made of debt financing and board independence as well as various control variables. Our analysis is based on a panel data set of 300 listed firms in Vietnam between 2013 and 2017. Our study finds that debt financing has a significantly negative effect and that board independence reduces the adverse impact of debt financing on accounting profitability. Our results are consistent across different estimation models and methods.

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