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Internationalization of emerging-economy new ventures: The role of within-country differences
Institution:1. Lacy School of Business, Butler University, Indianapolis, IN, U.S.A.;2. Kelley School of Business, Indiana University, Bloomington, IN, U.S.A.;3. School of Management, Zhejiang University, Hanzghou, Zhejiang, China;1. Aarhus University, Birk Centerpark 15, DK-7400 Herning, Denmark;2. University of Zurich Seilergraben 53, CH-8001 Zurich, Switzerland;3. Institute of Management, University of St. Gallen, Dufourstrasse 40a, CH-9000 St. Gallen, Switzerland;1. Huntsman School of Business, Utah State University, 3555 Old Main Hill, Logan, UT 84322-3555, U.S.A.;2. Cornell SC Johnson College of Business, Cornell University, 401L Sage Hall, Ithaca, NY 14853, U.S.A.;3. Paul Merage School of Business, University of California, Irvine, Irvine, CA 92697-3130, U.S.A.;1. Kelley School of Business, Indiana University, 1309 E Tenth Street, Bloomington, IN 47405-1701;2. College of Agriculture, Texas A&M University, College Station, TX 77843, U.S.A.;3. Mays Business School, Texas A&M University, College Station, TX 77843, U.S.A.;4. Neeley School of Business, Texas Christian University
Abstract:New ventures are increasingly internationalizing from emerging economies, but the role of their home country and any associated within-country regional differences are not well understood. In this article, we look at a new venture in China and how its headquartered region promotes its internationalization. We present empirical evidence that shows the interrelatedness between a venture’s region and internationalization: When institutional development in a region is strong, the impact of foreign firm presence on venture internationalization becomes even stronger. We discuss implications for managers of multinational enterprises and new ventures operating in emerging economies as well as policymakers in these economies.
Keywords:Foreign firm presence  Institutional development  New venture internationalization  Regional differences  Emerging economies  China
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