Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Industry life cycle, geographic diversification and performance of international new ventures

Industry life cycle, geographic diversification and performance of international new ventures The purpose of this paper is to examine how geographic diversification affects the performance of international new ventures.Design/methodology/approachThis study develops hypotheses about the individual and joint effects of geographic diversification and industry life cycle on the performance of international new ventures. This paper also introduces industry technology characteristics as a contingent factor for the above relationships and tests the hypotheses on a large panel data set.FindingsBased on the analyses of the strategies and performance of 699 listed Chinese international new ventures between 1991 and 2014, this study finds that the impact of geographic diversification on performance is contingent on the stage of the industry life cycle and that the moderating effect differs across high-technology and low-technology industries. The results suggest that it is fruitful for international new ventures in high-technology industries to undertake geographic diversification in earlier stages of the industry life cycle, but international new ventures in low-technology industries are better off undertaking geographic diversification during the later stages of the industry life cycle.Originality/valueThe study contributes to the literature on international entrepreneurship by identifying the industry life cycle conditions under which the learning advantages of international new ventures are effective and facilitate the achievement of better performance. This paper also shows that industry technology type matters for geographic diversification strategies of international new ventures. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Multinational Business Review Emerald Publishing

Industry life cycle, geographic diversification and performance of international new ventures

Multinational Business Review , Volume 30 (1): 19 – Mar 23, 2022

Loading next page...
 
/lp/emerald-publishing/industry-life-cycle-geographic-diversification-and-performance-of-r408iyF2bK

References (84)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1525-383X
eISSN
1525-383X
DOI
10.1108/mbr-04-2020-0080
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to examine how geographic diversification affects the performance of international new ventures.Design/methodology/approachThis study develops hypotheses about the individual and joint effects of geographic diversification and industry life cycle on the performance of international new ventures. This paper also introduces industry technology characteristics as a contingent factor for the above relationships and tests the hypotheses on a large panel data set.FindingsBased on the analyses of the strategies and performance of 699 listed Chinese international new ventures between 1991 and 2014, this study finds that the impact of geographic diversification on performance is contingent on the stage of the industry life cycle and that the moderating effect differs across high-technology and low-technology industries. The results suggest that it is fruitful for international new ventures in high-technology industries to undertake geographic diversification in earlier stages of the industry life cycle, but international new ventures in low-technology industries are better off undertaking geographic diversification during the later stages of the industry life cycle.Originality/valueThe study contributes to the literature on international entrepreneurship by identifying the industry life cycle conditions under which the learning advantages of international new ventures are effective and facilitate the achievement of better performance. This paper also shows that industry technology type matters for geographic diversification strategies of international new ventures.

Journal

Multinational Business ReviewEmerald Publishing

Published: Mar 23, 2022

Keywords: International new ventures; Industry life cycle; Geographic diversification; High-technology industries; Low-technology industries

There are no references for this article.