IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v32y2023i6s0969593123000446.html
   My bibliography  Save this article

Springboard internationalisation in times of geopolitical tensions

Author

Listed:
  • Fjellström, Daniella
  • Bai, Wensong
  • Oliveira, Luis
  • Fang, Tony

Abstract

Geopolitical tensions and a world where state interventions are driven by national security and ideology present novel challenges for emerging market multinational enterprises (EMNEs). Often, individual companies are targeted, and their corporate growth gets curbed. These phenomena are derived from non-market factors, which are generally absent in the springboard view of the international business discourse that explains the foreign expansion of EMNEs by viewing these firms as ambidextrous organisations capable of handling conflicting requirements. This research aims to understand the international expansion of EMNEs under geopolitical tensions by incorporating non-market factors into the ambidexterity model to enrich the springboard view. A case study of Huawei and its exclusion from the telecommunications industry in Sweden forms the empirical base of this research. The contributions are twofold. First, within the springboard view, the ambidexterity model can be upgraded by incorporating non-market factors that better explain the international expansion of EMNEs in changing geopolitical and business contexts. Second, the research highlights the management of EMNEs' subsidiaries while considering geopolitical tensions.

Suggested Citation

  • Fjellström, Daniella & Bai, Wensong & Oliveira, Luis & Fang, Tony, 2023. "Springboard internationalisation in times of geopolitical tensions," International Business Review, Elsevier, vol. 32(6).
    • Handle: RePEc:eee:iburev:v:32:y:2023:i:6:s0969593123000446
    DOI: 10.1016/j.ibusrev.2023.102144
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593123000446
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2023.102144?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Khan, Zaheer & Lew, Yong Kyu & Marinova, Svetla, 2019. "Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent," International Business Review, Elsevier, vol. 28(3), pages 499-512.
    2. Khan, Zaheer & Rao-Nicholson, Rekha & Tarba, Shlomo Y., 2018. "Global networks as a mode of balance for exploratory innovations in a late liberalizing economy," Journal of World Business, Elsevier, vol. 53(3), pages 392-402.
    3. Enderwick, Peter & Buckley, Peter J., 2021. "The role of springboarding in economic catch-up: A theoretical perspective," Journal of International Management, Elsevier, vol. 27(3).
    4. Jonathan P. Doh & Thomas Lawton & Tazeeb Rajwani, 2012. "Advancing Nonmarket Strategy Research : Institutional Perspectives in a Changing World," Post-Print hal-02276718, HAL.
    5. Jiang, Shisong & Gong, Limin & Wang, Hua & Kimble, Chris, 2016. "Institution, strategy, and performance: A co-evolution model in transitional China," Journal of Business Research, Elsevier, vol. 69(9), pages 3352-3360.
    6. Hartwell, Christopher A. & Devinney, Timothy, 2021. "Populism, political risk, and pandemics: The challenges of political leadership for business in a post-COVID world," Journal of World Business, Elsevier, vol. 56(4).
    7. Peter Ping Li, 2014. "The Unique Value of Yin-Yang Balancing: A Critical Response," Management and Organization Review, The International Association for Chinese Management Research, vol. 10(2), pages 321-332, July.
    8. Maksimov, Vladislav & Luo, Yadong, 2021. "International springboard as an entrepreneurial act," Journal of World Business, Elsevier, vol. 56(3).
    9. Tan, Hao & Yang, Mengying, 2021. "The New Liability of Origin in Global Decoupling," Management and Organization Review, Cambridge University Press, vol. 17(3), pages 624-629, July.
    10. Rajwani, Tazeeb & Liedong, Tahiru Azaaviele, 2015. "Political activity and firm performance within nonmarket research: A review and international comparative assessment," Journal of World Business, Elsevier, vol. 50(2), pages 273-283.
    11. Ziad F. Elsahn & Maureen Benson-Rea, 2018. "Political Schemas and Corporate Political Activities During Foreign Market Entry: A Micro-process Perspective," Management International Review, Springer, vol. 58(5), pages 771-811, October.
    12. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    13. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    14. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    15. Fang, Tony, 2012. "Yin Yang: A New Perspective on Culture," Management and Organization Review, Cambridge University Press, vol. 8(1), pages 25-50, March.
    16. Simon J Evenett, 2019. "Protectionism, state discrimination, and international business since the onset of the Global Financial Crisis," Journal of International Business Policy, Palgrave Macmillan, vol. 2(1), pages 9-36, March.
    17. Doh, Jonathan P. & Dahan, Nicolas M. & Casario, Michelle, 2022. "MNEs and the practice of international business diplomacy," International Business Review, Elsevier, vol. 31(1).
    18. Witt, Michael A. & Li, Peter Ping & Välikangas, Liisa & Lewin, Arie Y., 2021. "De-globalization and Decoupling: Game Changing Consequences?," Management and Organization Review, Cambridge University Press, vol. 17(1), pages 6-15, February.
    19. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    20. Bandeira-de-Mello, Rodrigo & Fleury, Maria Tereza Leme & Aveline, Carlos Eduardo Stefaniak & Gama, Marina Amado Bahia, 2016. "Unpacking the ambidexterity implementation process in the internationalization of emerging market multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 2005-2017.
    21. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    22. Li, Peter Ping, 2014. "The Unique Value of Yin-Yang Balancing: A Critical Response," Management and Organization Review, Cambridge University Press, vol. 10(2), pages 321-332, July.
    23. Yadong Luo & Ari Assche, 2023. "The rise of techno-geopolitical uncertainty: Implications of the United States CHIPS and Science Act," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1423-1440, October.
    24. Kerstin J. Schaefer, 2020. "Catching up by hiring: The case of Huawei," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1500-1515, December.
    25. Pei Sun & Jonathan P. Doh & Tazeeb Rajwani & Donald Siegel, 2021. "Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1818-1853, December.
    26. Zdravkovic, Srdan & Magnusson, Peter & Miocevic, Dario & Westjohn, Stanford A., 2021. "Vicarious animosity: Taking sides on provocative issues," Journal of Business Research, Elsevier, vol. 124(C), pages 77-85.
    27. Tony Fang, 2012. "Yin Yang: A New Perspective on Culture," Management and Organization Review, The International Association for Chinese Management Research, vol. 8(1), pages 25-50, March.
    28. Chidlow, Agnieszka & Wang, Jue & Liu, Xiaohui & Wei, Yingqi, 2021. "A co-evolution perspective of EMNE internationalization and institutions: An integrative framework of 5Cs," International Business Review, Elsevier, vol. 30(4).
    29. Catherine Welch & Rebecca Piekkari & Emmanuella Plakoyiannaki & Eriikka Paavilainen-Mantymaki, 2011. "Theorising from case studies: Towards a pluralist future for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 740-762, June.
    30. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 481-498, July.
    31. Michael A. Witt, 2019. "De-globalization: Theories, predictions, and opportunities for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1053-1077, September.
    32. Alvaro Cuervo‐Cazurra & Mehmet Erdem Genc, 2011. "Obligating, Pressuring, and Supporting Dimensions of the Environment and the Non‐Market Advantages of Developing‐Country Multinational Companies," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 441-455, March.
    33. Yadong Luo & Michael A. Witt, 2022. "Springboard MNEs under de-globalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 767-780, June.
    34. Pereira, Vijay & Giudice, Manlio Del & Malik, Ashish & Tarba, Shlomo & Temouri, Yama & Budhwar, Pawan & Patnaik, Swetketu, 2021. "A longitudinal investigation into multilevel agile & ambidextrous strategic dualities in an information technology high performing EMNE," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    35. Nowacki, Caroline & Monk, Ashby, 2020. "Ambidexterity in government: The influence of different types of legitimacy on innovation," Research Policy, Elsevier, vol. 49(1).
    36. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Sinziana Dorobantu & Aseem Kaul & Bennet Zelner, 2017. "Nonmarket strategy research through the lens of new institutional economics: An integrative review and future directions," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 114-140, January.
    37. Wang, Liang & Xie, Zaiyang, 2021. "An Outcome of Decoupling and De-globalization? The Weakened Impact of Internationalization on Innovation of Chinese Firms Since 2016," Management and Organization Review, Cambridge University Press, vol. 17(3), pages 630-635, July.
    38. Khan, Zaheer & Amankwah-Amoah, Joseph & Lew, Yong Kyu & Puthusserry, Pushyarag & Czinkota, Michael, 2022. "Strategic ambidexterity and its performance implications for emerging economies multinationals," International Business Review, Elsevier, vol. 31(3).
    39. Yadong Luo & Rosalie L Tung, 2018. "A general theory of springboard MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 129-152, February.
    40. Cuervo-Cazurra, Alvaro & Ciravegna, Luciano & Melgarejo, Mauricio & Lopez, Luis, 2018. "Home country uncertainty and the internationalization-performance relationship: Building an uncertainty management capability," Journal of World Business, Elsevier, vol. 53(2), pages 209-221.
    41. Vikas Kumar & Deeksha Singh & Anish Purkayastha & Manish Popli & Ajai Gaur, 2020. "Springboard internationalization by emerging market firms: Speed of first cross-border acquisition," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(2), pages 172-193, March.
    42. Pereira, Vijay & Patnaik, Swetketu & Temouri, Yama & Tarba, Shlomo & Malik, Ashish & Bustinza, Oscar, 2021. "A longitudinal micro-foundational investigation into ambidextrous practices in an international alliance context–A case of a biopharma EMNE," International Business Review, Elsevier, vol. 30(1).
    43. Witt, Michael A. & Lewin, Arie Y. & Li, Peter Ping & Gaur, Ajai, 2023. "Decoupling in international business: Evidence, drivers, impact, and implications for IB research," Journal of World Business, Elsevier, vol. 58(1).
    44. Yadong Luo, 2022. "Illusions of techno-nationalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 550-567, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Molin & Yan, Haifeng & Ciabuschi, Francesco & Su, Cong, 2023. "Facilitator or inhibitor? The effect of host-country intellectual property rights protection on China’s technology-driven acquisitions," International Business Review, Elsevier, vol. 32(6).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Godinho, Manuel Mira & Simões, Vítor Corado, 2023. "The Tech Cold War: What can we learn from the most dynamic patent classes?," International Business Review, Elsevier, vol. 32(6).
    2. Xu, Kai & Hitt, Michael A. & Brock, David & Pisano, Vincenzo & Huang, Lulu S.R., 2021. "Country institutional environments and international strategy: A review and analysis of the research," Journal of International Management, Elsevier, vol. 27(1).
    3. Khan, Zaheer & Amankwah-Amoah, Joseph & Lew, Yong Kyu & Puthusserry, Pushyarag & Czinkota, Michael, 2022. "Strategic ambidexterity and its performance implications for emerging economies multinationals," International Business Review, Elsevier, vol. 31(3).
    4. Buckley, Peter J & Cui, Lin & Chen, Liang & Li, Yi & Choi, Yoona, 2023. "Following their predecessors’ journey? A review of EMNE studies and avenues for interdisciplinary inquiry," Journal of World Business, Elsevier, vol. 58(2).
    5. Nathaniel Boso & Joseph Amankwah-Amoah & Dominic Essuman & Oluwaseun E. Olabode & Patience Bruce & Magnus Hultman & James Kofi Kutsoati & Ogechi Adeola, 2023. "Configuring political relationships to navigate host-country institutional complexity: Insights from Anglophone sub-Saharan Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 1055-1089, August.
    6. Simon Hartmann & Thomas Lindner & Jakob Müllner & Jonas Puck, 2022. "Beyond the nation-state: Anchoring supranational institutions in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1282-1306, August.
    7. Meyer, Klaus E. & Fang, Tony & Panibratov, Andrei Y. & Peng, Mike W. & Gaur, Ajai, 2023. "International business under sanctions," Journal of World Business, Elsevier, vol. 58(2).
    8. Cui, Lin & Gao, Qiuling & Guo, Jinyu & Ma, Pengcheng, 2022. "OFDI performance of EMNEs: A review and recommendations for future research," Journal of International Management, Elsevier, vol. 28(3).
    9. Purkayastha, Anish & Kumar, Vikas & Gupta, Vishal K., 2021. "Emerging market internationalizing firms: Learning through internationalization to achieve entrepreneurial orientation," Journal of World Business, Elsevier, vol. 56(5).
    10. Fathallah, Ramzi & Branzei, Oana & Schaan, Jean-Louis, 2018. "No place like home? How EMNCs from hyper turbulent contexts internationalize by sequentially arbitraging rents, values, and scales abroad," Journal of World Business, Elsevier, vol. 53(5), pages 620-631.
    11. Yadong Luo & Ari Assche, 2023. "The rise of techno-geopolitical uncertainty: Implications of the United States CHIPS and Science Act," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1423-1440, October.
    12. Mike W. Peng & Joyce C. Wang & Nishant Kathuria & Jia Shen & Miranda J. Welbourne Eleazar, 2023. "Toward an institution-based paradigm," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 353-382, June.
    13. Betty Feng, Jing & Liu, Steven Y.H. & Anne Liu, Leigh, 2023. "Cognitive antecedents of EMNEs’ dynamic capabilities: A case study of global identity at Lenovo," Journal of Business Research, Elsevier, vol. 154(C).
    14. Rosalie L. Tung & Gary Knight & Pervez Ghauri & Shameen Prashantham & Tony Fang, 2023. "Disruptive knowledge in international business research: A pipe dream or attainable target?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1589-1598, December.
    15. Cuervo-Cazurra, Alvaro & Pananond, Pavida, 2023. "The rise of emerging market lead firms in global value chains," Journal of Business Research, Elsevier, vol. 154(C).
    16. Mazé, Dominique & Chailan, Claude, 2021. "A South-South perspective on emerging economy companies and institutional coevolution: An empirical study of Chinese multinationals in Africa," International Business Review, Elsevier, vol. 30(4).
    17. Xie, En & Fang, Alex Junyi & Chen, Xin & Wu, Zhan & Kumar, Vikas, 2022. "Performance feedback on sales growth goal and OFDI location choices for firms in emerging economies," Journal of World Business, Elsevier, vol. 57(4).
    18. Gao, Hongzhi & Ren, Monica & Shih, Tsui-Yii, 2023. "Co-evolutions in global decoupling: Learning from the global semiconductor industry," International Business Review, Elsevier, vol. 32(6).
    19. Witt, Michael A. & Lewin, Arie Y. & Li, Peter Ping & Gaur, Ajai, 2023. "Decoupling in international business: Evidence, drivers, impact, and implications for IB research," Journal of World Business, Elsevier, vol. 58(1).
    20. Wang, Molin & Yan, Haifeng & Ciabuschi, Francesco & Su, Cong, 2023. "Facilitator or inhibitor? The effect of host-country intellectual property rights protection on China’s technology-driven acquisitions," International Business Review, Elsevier, vol. 32(6).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:32:y:2023:i:6:s0969593123000446. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.