Internal Capabilities, External Competition and Firm Performance: A Case Study for an Accelerated Internationalization Firm in Manufacturing

Abstract:

There are increasing firms go to foreign markets quickly to reach their international strategy, particularly some firms come from emerging economies. It is hard to explain in the conventional theory of gradual internationalization, and different from the viewpoints of born-global. We argue that this previous discussion does not consider enough the risk of being a late mover in the face of changing period of its industry. This study explores the circumstances under which capabilities accumulated, changing and globalization, a strategy of undertaking outward foreign direct investment at a quicker speed, could be a considerable strategy. Using a case study on Chinese firm, we find that rapid FDI expansion enhances firm performance in industries where are competitive intense and paradigm-changing, and when it is done by firms with superior internal capabilities.

• Periodical: Advanced Materials Research (Volumes 472-475)
• Pages: 3244-3250
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.472-475.3244
• Online since: February 2012
• Authors: Yu Gao
• Keywords: Accelerated Internationalization, Capability, Competition

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