본문 바로가기
KERD
논문KCI 등재

Digital Orientation for Emerging Multinationals and the Location Strategies in Internationalization: The Chinese Experience

김보경|곽주영|Xinyue Zhang
경영경제연구소 (management & economic research institute)|2023.09|아태비즈니스연구 ((APJB) Asia Pacific Journal of Business)|제14권 제3호|pp. 1-16|DOI https://doi.org/10.32599/apjb.14.3.202309.1

1

조회

0

다운로드

0

인용

0

참고문헌

키워드

InnovationChinaInternationalizationLocation ChoiceDigital Orientation

초록

Purpose- Despite the ongoing digital transformation, it is not clear whether emerging market firms follow their manufacturing FDI path in the emerging digital industries. This paper examines how digital orientation affects the location strategies in internationalization and how the existing innovation capacities moderate the link between digital orientation and the location strategies. Design/methodology/approach- This study chooses the Chinese setting for research design because digital transformation is already prevalent in the society and the cases of outward expansion are salient among the emerging markets. It uses the panel dataset of 976 Chinese listed firms that consists of 6,648 observations spanning from 2007 to 2017. Ordinary least square regression is used for the statistical approach with a one-year lag in the model. Findings- Digital orientation increases a likelihood of emerging multinationals’ entries in developed countries, and a high level of innovative capacities strengthens the link. Two groups seem to prefer entries in developed countries: firms with a high level of digital orientation with a high level of innovative capacities and firms with a low level of digital orientation, if with a low level of innovative capacities. The former reflects the context of digital transformation and the latter hints at the tax avoidance or interests in real estate. Research implications or originality -While emerging multinationals are known to prefer entries in developing countries for capacity arbitrage, our results forecast that their FDI strategies may have a drastic change as digital transformation deepens.

Abstract

Purpose- Despite the ongoing digital transformation, it is not clear whether emerging market firms follow their manufacturing FDI path in the emerging digital industries. This paper examines how digital orientation affects the location strategies in internationalization and how the existing innovation capacities moderate the link between digital orientation and the location strategies. Design/methodology/approach- This study chooses the Chinese setting for research design because digital transformation is already prevalent in the society and the cases of outward expansion are salient among the emerging markets. It uses the panel dataset of 976 Chinese listed firms that consists of 6,648 observations spanning from 2007 to 2017. Ordinary least square regression is used for the statistical approach with a one-year lag in the model. Findings- Digital orientation increases a likelihood of emerging multinationals’ entries in developed countries, and a high level of innovative capacities strengthens the link. Two groups seem to prefer entries in developed countries: firms with a high level of digital orientation with a high level of innovative capacities and firms with a low level of digital orientation, if with a low level of innovative capacities. The former reflects the context of digital transformation and the latter hints at the tax avoidance or interests in real estate. Research implications or originality -While emerging multinationals are known to prefer entries in developing countries for capacity arbitrage, our results forecast that their FDI strategies may have a drastic change as digital transformation deepens.

참고문헌 (62)

  1. Awate, S., "Accessing vs Sourcing Knowledge : A Comparative Study of R&D Internationalization Between Emerging and Advanced Economy Firms", Journal of International Business Studies, 46, pp.63~86 (2015)
  2. Barney, J. B., "Resource-based Theories of Competitive Advantage : A Ten-year Retrospective on the Resource-based View", Journal of Management, 27, pp.643~650 (2001)
  3. Bendig, D., "Digital Orientation and Environmental Performance in Times of Technological Change", Technological Forecasting and Social Change, 188, pp.122272~ (2023)
  4. Beneito, P., "The Innovative Performance of In-house and Contracted R&D in terms of Patents and Utility Models", Research Policy, 35(4), pp.502~517 (2006)
  5. Benner, M. J., "Exploitation, Exploration, and Process Management : The Productivity Dilemma Revisited", Academy of Management Review, 28(2), pp.238~256 (2003)
  6. Brandl, K., "Foreign Actors and Intellectual Property Protection Regulations in Developing Countries", Journal of International Business Studies, 50, pp.826~846 (2019)
  7. Buckley, P. J., "The Role of Local Context in the Cross-border Acquisitions by Emerging Economy Multinational Enterprises", British Journal of Management, 28(3), pp.372~389 (2017)
  8. Buckley, P. J., "Acquisitions by Emerging Market Multinationals : Implications for Firm Performance", Journal of World Business, 49(4), pp.611~632 (2014)
  9. Chavez, R., "Environmental Collaboration with Suppliers and Cost Performance : Exploring the Contingency Role of Digital Orientation from a Circular Economy Perspective", International Journal of Operations & Production Management, 43(4), pp.651~675 (2023)
  10. Chen, Z., "Types of Patents and Driving Forces Behind the Patent Growth in China", Economic Modeling, 80, pp.294~302 (2019)
  11. Cohen, W. M., "Absorptive Capacity : A New Perspective on Learning and Innovation", Administrative Science Quarterly, 35(1), pp.128~152 (1990)
  12. Cuervo-Cazurra, A., "Transforming Disadvantages into Advantages : Developing-country MNEs in the Least Developed Countries", Journal of International Business Studies, 9, pp.957~979 (2008)
  13. Du, M., "State Ownership, Institutional Effects and Value Creation in Cross-border Mergers & Acquisitions by Chinese Firms", International Business Review, 24(3), pp.430~442 (2015)
  14. Dunning, J. H., "The International Allocation of Economic Activity", pp.395~418 (1977), Palgrave Macmillan
  15. Gatignon, H., "Strategic Orientation of the Firm and New Product Performance", Journal of Marketing Research, 34(1), pp.77~90 (1997)
  16. Grawe, S. J., "The Relationship Between Strategic Orientation, Service Innovation, and Performance", International Journal of Physical Distribution and Logistics Management, 39(4), pp.282~300 (2009)
  17. Helpman, E., "Export versus FDI with Heterogeneous Firms", American Economic Review, 94(1), pp.300~316 (2004)
  18. Hervé, A., "Internationalization and Digitalization : Applying Digital Technologies to the Internationalization Process of Small and Medium-sized Enterprises", Technology Innovation Management Review, 10(7), pp.28~40 (2020)
  20. Hu, A. G., "Propensity to Patent, Competition and China's Foreign Patenting Surge", Research Policy, 39(7), pp.985~993 (2010)
  21. Hult, G. T. M., "Market Orientation and Performance : An Integration of Disparate Approaches", Strategic Management Journal, 26(12), pp.1173~1181 (2005)
  22. Hymer, S. H., "The International Operations of National Firms, A Study of Direct Foreign Investment", Ph.D., pp.1960
  23. Kabanda, S., "Exploring SME Cybersecurity Practices in Developing Countries", Journal of Organizational Computing and Electronic Commerce, 28(3), pp.269~282 (2018)
  24. Kane, G. C., "Strategy, not Technology, Drives Digital Transformation Becoming a Digitally Mature Enterprise in Collaboration With" (2015), MIT Sloan Management Review and Deloitte University Press
  25. Kang, Y., "Regulatory Institutions, Natural Resource Endowment and Location Choice of Emerging-market FDI : A Dynamic Panel Data Analysis", Journal of Multinational Financial Management, 45, pp.1~14 (2018)
  26. Kedia, B., "EMNEs and Knowledge-seeking FDI", Management International Review, 52, pp.155~173 (2012)
  28. Kindermann, B., "Digital Orientation : Conceptualization and Operationalization of a New Strategic Orientation", European Management Journal, 39(5), pp.645~657 (2021)
  29. Knight, G. A., "Innovation, Organizational Capabilities, and the Born-global Firm", Journal of International Business Studies, 35(2), pp.124~141 (2004)
  30. Koh, Y., "R&D Subsidies in Permissive and Restrictive Environment : Evidence from Korea", Research Policy, 52(1), pp.104620~ (2022)
  31. Kolstad, I., "What Determines Chinese Outward FDI?", Journal of World Business, 47(1), pp.26~34 (2012)
  32. Lee, K., "The Fourth Industrial Revolution, Changing Global Value Chains and Industrial Upgrading in Emerging Economies", Journal of Economic Policy Reform, 23(4), pp.359~370 (2020)
  33. Li, J., "Diplomatic and Corporate Networks : Bridges to Foreign Locations", Journal of International Business Studies, 49(6), pp.659~683 (2018)
  34. Liang, X., "Outward Internationalization of Private Enterprises in China: The Effect of Competitive Advantages and Disadvantages Compared to Home Market Rivals", Journal of World Business, 47(1), pp.134~144 (2012)
  35. Lu, J., "From LLL to LOL : Moving Dragon Multinationals Research Forward", Asia Pacific Journal of Management, 34, pp.757~768 (2017)
  36. Luo, Y., "A General Framework of Digitization Risks in International Business", Journal of International Business Studies, 53(2), pp.344~361 (2022)
  37. Maskus, K. E., "Intellectual Property Rights in the Global Economy" (2000), Peterson Institute
  38. Mathews, J., "China, India and Brazil: Tiger Technologies, Dragon Multinationals and the Building of National Systems of Economic Learning", Asian Business & Management, 8, pp.5~32 (2009)
  39. Mathews, J. A., "Competitive Advantages of the Latecomer Firm : A Resource-based Account of Industrial Catch-up Strategies", Asia Pacific Journal of Management, 19(4), pp.467~488 (2002)
  40. Mathews, J. A., "Dragon Multinationals : New Players in 21 st Century Globalization", Asia Pacific Journal of Management, 23, pp.5~27 (2006)
  41. Nambisan, S., "The Digital Transformation of Innovation and Entrepreneurship : Progress, Challenges and Key Themes", Research Policy, 48(8), pp.103773~ (2019)
  42. Potrafke, N., "The Evidence on Globalisation", World Economy, 38, pp.509~552 (2015)
  43. Poynter, T. A., "Government Intervention in Less Developed Countries : The Experience of Multinational Companies", Journal of International Business Studies, 13(3), pp.9~25 (1982)
  44. Quinton, S., "Conceptualising a Digital Orientation : Antecedents of Supporting SME Performance in the Digital Economy", Journal of Strategic Marketing, 26(5), pp.427~439 (2018)
  45. Ramasamy, B., "China's Outward Foreign Direct Investment : Location Choice and Firm Ownership", Journal of World Business, 47(1), pp.17~25 (2012)
  46. Ruokonen, M., "The Strategic Orientations of Rapidly Internationalizing Software Companies", European Business Review, 21(1), pp.17~41 (2009)
  47. Going Out: An Overview of China's Outward Foreign Direct Investment, "Salidjanova, N.", US-China Economic and Security Review Commission, ~ (2011)
  48. Sheng, M. L., "Rethinking Organizational Learning Orientation on Radical and Incremental Innovation in High-tech Firms", Journal of Business Research, 69(6), pp.2302~2308 (2016)
  49. Suthersanen, U., "Utility Models and Innovation in Developing Countries", International Centre for Trade and Sustainable Development(ICTSD), 13, pp.1~52 (2006)
  50. Vecchia, A., "Two Tales of Internationalization : Chinese Internet Firms' Expansion into the European Market", Journal of Business Research, 152, pp.106~127 (2022)
  51. Wang, T., "The Double-edged Sword Effect of Political Ties on Performance in Emerging Markets : The Mediation of Innovation Capability and Legitimacy", Asia Pacific Journal of Management, 38, pp.1003~1030 (2021)
  52. Wilson, J., "Resource Powers? Minerals, Energy and the Rise of the BRICs", Third World Quarterly, 36(2), pp.223~239 (2015)
  53. Wu, J., "Network Complementaries in the International Expansion of Emerging Market Firms", Journal of World Business, 55(2), pp.101045~ (2020)
  54. Wu, J., "The Impact of Imitation Strategy and R&D Resources on Incremental and Radical Innovation : Evidence from Chinese Manufacturing Firms", Journal of Technology Transfer, 44(1), pp.210~230 (2019)
  55. Wu, R., "Trends of Natural Resource Footprints in the BRIC (Brazil, Russia, India and China) Countries", Journal of Cleaner Production, 142, pp.775~782 (2017)
  56. Yan, B., "Productivity, Financial Constraints and Outward Foreign Direct Investment : Firm-level Evidence", China Economic Review, 47, pp.47~64 (2018)
  57. Yang, D., "Arm's Length and Captive Transactions : Patent-based View of Control in Internationalization", International Business Review, 21(4), pp.575~587 (2012)
  58. Yang, D., "Integration and Divergence of Patent Systems Across National and International Institutions", Journal of World Business, 48(4), pp.527~538 (2013)
  59. Yin, W., "The Success Factors of Korean Global Start-Ups in the Digital Sectors Through Internationalization", International Journal of Global Business and Competitiveness, 14, pp.42~53 (2019)
  60. You, H. W., "The Role of Digital Orientation in Moderating the Relationship Between Innovation and Internationalization", International Journal of Emerging Markets (2023)
  61. Yu, H., "The China Quarterly", pp.817~819 (2017), University of Illinois Pres
  62. Zhang, N., "Knowledge Path Dependence, External Connection, and Radical Inventions : Evidence from Chinese Academy of Sciences", Research Policy, 52(4), pp.104738~ (2023)

관련 논문AI추천

Digital Transformation and Inter-Regional Dynamics: Accelerating Chinese Multinationals' Internationalization in the De-globalization EraNam Kim사람과세계경영학회 · Global Business and Finance Review2024 · 제29권 제8호Internationalization and Location Choice of Multinational Enterprises from Emerging Economies박정양, Jonathan Jones한국국제경영학회 · 국제경영연구2019 · 제30권 제1호The Impact of Interfirm Linkages on Chinese MNEs’ Entry into Foreign Markets홍성진, Hang Su대외경제정책연구원 · East Asian Economic Review2022 · 제26권 제2호Location Differences between Privatized State-Associated Enterprises (PSEs) and Privately Owned Enterprises (POEs) from China in Outward Foreign Direct Investment (OFDI)나원찬, 첸춘샹한국국제경영학회 · 국제경영연구2014 · 제25권 제1호Determinants of the Internationalization of Born-Digital Firms박영렬, 이은미, 최희정한국사회과학협의회 · Korean Social Science Journal2021 · 제48권 제3호R&D Internationalization and Innovation Performance: Evidence from Chinese Enterprises이병희, Hong Chen, Qiang Zhao경영경제연구소 · 경영경제연구2022 · 제44권 제3호

이 간행물의 다른 논문 (15건)

The Effects of Paid Family Leave on Corporate Social Responsibility정수미, Jeongeun Emilia Leepp. 17-24해외 의료관광객이 느끼는 통제력이 서비스 만족 및 구전의도에 미치는 영향이정기, 마성승pp. 25-44야간수익률과 고유변동성이 기대수익률에 미치는 영향전용호pp. 45-66임파워링 리더십이 적응수행에 미치는 영향: 직무도전성의 매개 효과와 독자성 · 융화성 성향의 조절효과정선화, 김혜연, 박지환, 박은지pp. 67-88조직지위의 이원성과 비정규직 고용: 한국대학의 평가형 지위와 범 주형 지위가 비정규직 고용에 미치는 영향정대훈pp. 89-101
원문 보기