Does international expansion constrain growth? Business groups, internationalization, institutional distance, and the Penrose effect

Wen Ting Lin, Ying Yu Chen, David Ahlstrom, Linda C. Wang

研究成果: Article同行評審

2 引文 斯高帕斯(Scopus)

摘要

Purpose: This paper aims to use the institutional and information-processing perspectives to explore their association with between internationalization and the Penrose effect phenomenon for business groups (BGs). Design/methodology/approach: The authors use ordinary least squares regression models to test arguments about data pertaining to 101 Taiwanese BGs’ foreign direct investments. Findings: The results indicate that greater levels of depth and scope in the process of internationalization during one period may negatively affect rates of growth in the following period. The results further demonstrate that institutional distance moderates the relationship. Research limitations/implications: Using the perspective of information-processing demands, the authors provide alternate explanations regarding the relationship between the process of internationalization (depth, scope and rhythm) and the Penrose effect. Originality/value: Owners and managers should focus on both the depth and the scope of internationalization. BGs are likely to incur high dynamic adjustment costs, which then limit the rate of BGs’ growth. Managers should balance international market uncertainty with current managerial resources when determining how deeply and broadly to expand internationally and where to enter. In addition, as recent major panel studies suggest, management capabilities and practices can improve significantly, which has a positive effect on firm growth and performance. This does require the careful development and acquisition of the managerial resources needed for internationalization.

原文English
頁(從 - 到)70-95
頁數26
期刊Multinational Business Review
29
發行號1
DOIs
出版狀態Published - 2021 一月 7

All Science Journal Classification (ASJC) codes

  • 商業與國際管理
  • 商業、管理和會計 (全部)

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