Organizational Ability, International Venturing and Internationalization Performance

Abstract

Abstract: Scholars have increasingly emphasized the importance of institutional differences between host countries and home countries for MNCs. However, prior researches seldom examined the possible impacts of institutional differences on emerging market firms' international venturing, and our study attempts to fill in this research gap. We take the perspective of both institutional escapism and institutional arbitrage to explore how technological capabilities (TC) and marketing capabilities (MC) impact internationalization performance. In so doing, we propose a moderated mediation model by considering international venturing as a mediator and environmental scanning as a moderator. Findings from two key sources of information regarding 150 Chinese firms suggest that international venturing mediates the relationship between TC/MC and international performance, and environmental scanning strengthens the positive effects of TC/MC on international venturing. Besides, the indirect effect of international venturing on the MC-internationalization performance relationship is stronger when environmental scanning exists at a high level. Overall, this study extends institutional theory to internationalization research by offering insights regarding why and how emerging market firms venture abroad.

Key words: technological capabilities, marketing capabilities, international venturing, environmental scanning, moderated mediation

Jiang Xu, Pan Ke. Organizational Ability, International Venturing and Internationalization Performance[J]. Management Review, 2022, 34(6): 76-89.

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