Internationalization of Large Companies from Central and Eastern Europe or the Birth of New Stars

With rapid globalization, firm internationalization has become an important corporate strategy as well as the necessity for the survival and growth of the business. In the last decade, there has been a growth in literature that studies this field, especially in emerging countries. However, there exists a gap in the literature in CEE countries. This study aims to fill that gap by conducting an analysis and providing insight regarding the factors that lead to an increase in firm internationalization in this region. This research paper studies the main determinants that have an impact on the firm internationalization of large companies in CEE countries using panel data empirical methods, such as the random effect model and generalized method of moments (GMM) model for a panel of 50 firms from 11 CEE countries and a time duration of 14 years. This study determines the main factors that positively influence firm internationalization in selected countries. These countries have experienced a radical transition from centrally planned economies to market economies, and although they have experienced economic growth and a rise in productivity, they are still facing several challenges. Therefore, it is important to know what facilitates and helps firms to expand in international markets. The main findings derived from this study show that firm characteristics, such as age, size and corporate performance, have a positive effect on the internationalization process. An increase in age, size and firm performance leads to higher levels of internationalization. Larger and relatively older firms have access to more resources and are more experienced in dealing with the environmental difficulties characteristic of these countries.

Agency Theory and Internationalization: A Critical Assessment of Literature

This study consolidates the state of academic research using agency theory to explain the various phenomena’s in the multinational firm’s (MNCs) context. Based on the systematic review of the literature, the author finds that agency theory is used to examine the degree of internationalization, international diversification, born global internationalization, and governance issues in various modes of foreign entries. The author classifies the literature in three broad themes: corporate governance, firm ownership, and born global firms. Agency theory is also used to examine the impact of top management characteristics, board structure, ownership by domestic investors, foreign investors, business group firms, family ownership, and state ownership on the firm internationalization decisions. The study concludes with the research gaps and future research directions.

Chairpersons’ hubris and internationalization: evidence from emerging market’s family business groups

PurposeThis paper aims to explore the association between chairperson hubris and the internationalization of firms belonging to business groups in an emerging market, India, under the boundary conditions of business group internationalization and the tenure of independent board members. Design/methodology/approachArchival data of 163 Indian family firms over a five-year period were used. FindingsThe study highlights the significance of chairperson hubris in determining the internationalization of family firms in India and the influence that business group internationalization and the tenure of independent board members have on the chairperson hubris and firm internationalization relationships. Originality/valueAlthough literature exists on drivers of internationalization, micro-foundations theories such as chairperson hubris have been less explored in the international business literature, especially in the context of emerging markets. Contribution to Impact

Governors' pro-market ideology as institutional enablement of firm internationalization

PurposeExtant literature has indicated that government support is one of the main drivers of international expansion of Chinese multinational enterprises. However, research on the influence of governors on firm internationalization is still limited. Drawing upon the institution-based view, we theorize a novel concept of institutional enablement to illustrate the influence of a governor's pro-market ideology on Chinese firms' internationalization.Design/methodology/approachWe analyze the relationship between a governor's pro-market ideology (consisting of a pro-market political ideology, an overseas educational background and a business background) and firm internationalization with a sample of Chinese public companies during 2014–2017.FindingsWe find a direct and positive effect of a governor's pro-market ideology on firm internationalization. We also find an indirect and positive effect of a governor's pro-market ideology through regional, inward foreign direct investment.Originality/valueTo the best of our knowledge, this paper is the first to investigate an underexplored question of the impact of governors on firm internationalization and to develop a novel concept of institutional enablement, based on discursive institutionalism.