Gongming Qian

Multinationality, product diversification, and profitability of emerging US small- and medium-sized enterprises

An empirical examination is conducted of individual and joint effects of two variables—multinationality and product diversification—on profit performance for a sample of emerging small- and medium-sized enterprises (SMEs). Data was gathered from 71 emerging small- and medium-sized manufacturing enterprises selected from the Hoover’s Handbook of Emerging Companies. The results indicate that the two variables and performance are positively related up to a point, after which further increase in multinationality and product diversification is associated with declining performance. These findings suggest that firms should consider optimal levels of markets. Findings also demonstrate that research and development (R&D) expenditure and debt level contribute significantly to profit performance. (SFL)

Multinationality, global market diversification and profitability among the largest US firms

Abstract This paper studies both geographic scale and scope of foreign operations for the largest US firms especially their strategic combinations by relating to the return performance. The test results indicate that the combination of high geographic scale and medium geographic scope of foreign operations outperformed other strategic combinations. This particularly suggests that the heavy or light geographic scope of foreign operations may possibly cause a downturn in profitability. The implication is that firms preparing themselves for overseas activities should consider the use of this strategic combination.

The effect of multinationality measures upon the risk-return performance of US firms

This study analyses the effect of a firms overseas activities upon its risk-return performance for a sample of US firms (including multinational enterprises and domestic firms) by using different multinationality measures. The test results indicate that firms with a greater share of overseas activities have a greater opportunity to achieve a better risk-return performance than those with little foreign involvement. More importantly, for a firm which meets the basic requirement of multinationality (for MNEs as a whole), the number of foreign markets served has a minimal influence on its performance.

Early internationalization and performance of small high‐tech “born‐globals”

Purpose – The purpose of this paper is to investigate the early internationalization and the performance of small firms in technology‐intensive industries.Design/methodology/approach – Using a sample of 278 small US firms in technology‐intensive industries, this paper employs quantitative methodologies to test hypotheses.Findings – The findings indicate that such organizational variables as firm size and international experience have a non‐linear, inverted U‐shaped relationship with these firms’ early internationalization. Some strategic variables, such as R&D intensity, have significant impacts, whereas others, such as advertising intensity and strategic alliances, have none. However, the interactions between these strategic variables have a more significant influence upon these firms’ early internationalization than do the individual strategic variables in isolation. Moreover, early internationalization has significant and positive impacts on the performance of these firms.Practical implications – The p...

Breaking into China: Strategic Considerations for Multinational Corporations

Abstract International firms can adopt different strategies when breaking into an emerging market such as China. This article studies three strategic choices facing multinational corporations (MNCs): labour-intensive vs. capital- and technology-intensive; coastal vs. inland location; and joint venture vs. wholly-owned investment. Using hierarchical regression analysis on data from 223 large, foreign-invested electronics firms in China, we offer interesting findings as to how and why different strategies affect the performance of foreign direct investment. We show that MNCs pursuing a capital- and technology-intensive strategy in China have a significantly better performance than those pursuing a labour-intensive strategy. Our study also documents significant interaction effects between ownership arrangements and technology intensity on firm performance. On the other hand, the effect of a firms location and ownership arrangements appear insignificant. To compete successfully in China today, firms cannot just focus on cheap labour and the production of low value-added goods; a capital- and technology-intensive strategy is more rewarding.

Firm resource and first mover advantages: A case of foreign direct investment (FDI) in China

This paper examines the relationship between firm resources and first-mover advantages with regard to foreign direct investment (FDI) in China. While this study replicates some previous research on the issue, it also builds on the previous research by developing new theoretical arguments and adopting different research methods. Based on research on the resource-based view of the firm, we hypothesize that firm resources will moderate the relationship between the timing of entry and firm performance. Empirical analyses of data from a sample of MNEs competing in China show evidence supporting our hypotheses.

Internalisation or externalisation: the option for small and medium-sized technology-based enterprises in overseas markets

Small and medium-sized firms interested in entering international markets face a difficult decision with regard to the choice of governance modes. The options available to a firm include internalisation and externalisation. Existing theories contradict each other about the strategic benefits of these options. This study compares these theories in the context of small and medium-sized technology-based enterprises. Findings from this study suggest that the merits of internalisation and externalisation vary with market contexts and the resources under the firms control. Under certain conditions, one theory can be more powerful than the other.

High-tech industries and competitive advantage in emerging markets: A study of foreign telecommunications equipment firms in china

Abstract This paper deals with the issue of competitive advantage among high-tech industries in emerging markets. It is argued that, for high-tech multi-national companies (MNCs) competing in emerging markets, technology leadership generates some very important competitive advantage that past research has not studied sufficiently. Data from 408 foreign-funded firms competing in Chinas telecommunications equipment industry provides convincing evidence supporting this argument. The results of this study highlight the need for high-tech firms to maintain technology leadership in international markets, including emerging markets. The paper concludes with a discussion on the implications of the findings.

Trading Favors for Marketing Advantage: Evidence from Hong Kong, China, and the United States

This study examines the risk-taking paradigm in the context of international marketing activities. It explores the causes of questionable business practices of Hong Kong executives in international marketing activities and further substantiates the findings with two replication samples (i.e., Mainland Chinese executives and U.S. executives). The authors find that the nature of the corruption proposal and the operating business environment affect Hong Kong executives’ risk-taking behavior (i.e., risk recognition, risk adjustment, and risky choice). The behaviors of Mainland Chinese executives and U.S. executives show a different picture. Developmental and cultural differences among the three economies explain the discrepancies.

Should Small, Young Technology‐Based Firms Internalize Transactions in Their Internationalization?

Small, young entrepreneurial firms’ governance structure across countries has generated an interesting debate in recent years. That is, should these firms internalize or externalize transactions in their internationalization? Existing studies suggest that there are advantages and disadvantages to both structures, but the findings are mixed. This study explores the factors that determine the governance structure of small, young technology–based entrepreneurial firms (SYTEFs). Evidence collected in this study indicates that choice of governance structure by SYTEFs is determined by a specific set of conditions, specifically, their choice of governance structure depends on their strategic assets, industry dynamism, and business scope.