IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v16y2010i1p43-59.html
   My bibliography  Save this article

Toward a learning-based view of internationalization: The accelerated trajectories of cross-border learning for latecomers

Author

Listed:
  • Li, Peter Ping

Abstract

Integrating the conventional models with the emerging models, we propose a learning-based view of internationalization for multinational enterprise (MNE), especially for MNE latecomers as the new species of MNE from the emerging economies. Built upon the duality lens and transaction value perspective, this learning-based view frames the pattern of cross-border learning in terms of both learning motive and learning capability as a learning trajectory, with distinctive entry strategies as the primary applications of such learning trajectories. The learning trajectories on the dimensions of exploitative and exploratory learning as well as unilateral and bilateral leaning jointly constitute an overall framework of MNE evolution with cross-border learning as its central theme, especially in the process of an accelerated internationalization. In particular, we frame cross-border alliance as a special form for bilateral learning in terms of co-exploitation and co-exploration, which motivates and enables the accelerated internationalization of MNE latecomers. Finally, we identify four major learning-based issues as new "big questions" to reflect the emerging paradigm shift from hierarchy-based unilateral exploitation to network-based bilateral exploration with the theme that hierarchy is best for exploiting the extant core competence, while strategic alliance is best for exploring a novel core competence.

Suggested Citation

  • Li, Peter Ping, 2010. "Toward a learning-based view of internationalization: The accelerated trajectories of cross-border learning for latecomers," Journal of International Management, Elsevier, vol. 16(1), pages 43-59, March.
  • Handle: RePEc:eee:intman:v:16:y:2010:i:1:p:43-59
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425309000957
    Download Restriction: Full text for ScienceDirect subscribers only

    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. John Hagedoorn, 1999. "The Transition from Strategic Technology Alliances to Mergers and Acquisitions: An Exploratory Study," Journal of Management Studies, Wiley Blackwell, vol. 36(1), pages 87-107, January.
    2. Rui, Huaichuan & Yip, George S., 2008. "Foreign acquisitions by Chinese firms: A strategic intent perspective," Journal of World Business, Elsevier, vol. 43(2), pages 213-226, March.
    3. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 29-53, March.
    4. Mike W Peng, 2004. "Identifying the big question in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 99-108, March.
    5. Robert M. Grant & Charles Baden-Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    6. John A Mathews & Ivo Zander, 2007. "The international entrepreneurial dynamics of accelerated internationalisation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(3), pages 387-403, May.
    7. Alan M Rugman & Alain Verbeke, 2003. "Extending the theory of the multinational enterprise: internalization and strategic management perspectives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(2), pages 125-137, March.
    8. Peter J Buckley & Donald R Lessard, 2005. "Regaining the edge for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 595-599, November.
    9. Sarianna Lundan & John Hagedoorn, 2001. "Alliances, Acquisitions and Multinational Advantage," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 229-242.
    10. Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 124-141, March.
    11. Shige Makino & Chung-Ming Lau & Rhy-Song Yeh, 2002. "Asset-Exploitation Versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 403-421, September.
    12. Li, Peter Ping, 2008. "Toward a Geocentric Framework of Trust: An Application to Organizational Trust," Management and Organization Review, Cambridge University Press, vol. 4(03), pages 413-439, November.
    13. Slangen, Arjen & Hennart, Jean-François, 2007. "Greenfield or acquisition entry: A review of the empirical foreign establishment mode literature," Journal of International Management, Elsevier, vol. 13(4), pages 403-429, December.
    14. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    15. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    16. Otto Andersen, 1993. "On the Internationalization Process of Firms: A Critical Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 209-231, June.
    17. Peter J Buckley & Mark C Casson, 1998. "Models of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 21-44, March.
    18. Marian V Jones & Nicole E Coviello, 2005. "Internationalisation: conceptualising an entrepreneurial process of behaviour in time," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 284-303, May.
    19. Zhiang (John) Lin & Haibin Yang & Irem Demirkan, 2007. "The Performance Consequences of Ambidexterity in Strategic Alliance Formations: Empirical Investigation and Computational Theorizing," Management Science, INFORMS, vol. 53(10), pages 1645-1658, October.
    20. Joan Enric Ricart & Michael J Enright & Pankaj Ghemawat & Stuart L Hart & Tarun Khanna, 2004. "New frontiers in international strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(3), pages 175-200, May.
    21. Shimizu, Katsuhiko & Hitt, Michael A. & Vaidyanath, Deepa & Pisano, Vincenzo, 2004. "Theoretical foundations of cross-border mergers and acquisitions: A review of current research and recommendations for the future," Journal of International Management, Elsevier, vol. 10(3), pages 307-353.
    22. Michael A. Hitt & Haiyang Li & William J. Worthington IV, 2005. "Emerging Markets as Learning Laboratories: Learning Behaviors of Local Firms and Foreign Entrants in Different Institutional Contexts," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 353-380, November.
    23. Laszlo Tihanyi & David A Griffith & Craig J Russell, 2005. "The effect of cultural distance on entry mode choice, international diversification, and MNE performance: a meta-analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 270-283, May.
    24. Karen Ruckman, 2005. "Technology sourcing through acquisitions: evidence from the US drug industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 89-103, January.
    25. Hitt, Michael A. & Li, Haiyang & Worthington, William J., 2005. "Emerging Markets as Learning Laboratories: Learning Behaviors of Local Firms and Foreign Entrants in Different Institutional Contexts," Management and Organization Review, Cambridge University Press, vol. 1(03), pages 353-380, November.
    26. Li, Jing & Zhou, Changhui, 2008. "Dual-edged tools of trade: How international joint ventures help and hinder capability building of Chinese firms," Journal of World Business, Elsevier, vol. 43(4), pages 463-474, October.
    27. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    28. John Dunning, 2001. "The Eclectic (OLI) Paradigm of International Production: Past, Present and Future," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 173-190.
    29. Child, John & Rodrigues, Suzana B., 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, Cambridge University Press, vol. 1(03), pages 381-410, November.
    30. Mike Wright & 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.
    31. Duanmu, Jing-Lin & Fai, Felicia M., 2007. "A processual analysis of knowledge transfer: From foreign MNEs to Chinese suppliers," International Business Review, Elsevier, vol. 16(4), pages 449-473, August.
    32. Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-334, July.
    33. Acedo, Francisco José & Casillas, José Carlos, 2005. "Current paradigms in the international management field: An author co-citation analysis," International Business Review, Elsevier, vol. 14(5), pages 619-639, October.
    34. 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.
    35. Donald J Lecraw, 1993. "Outward Direct Investment by Indonesian Firms: Motivation and Effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(3), pages 589-600, September.
    36. Nicolai Juul Foss & Torben Pedersen, 2004. "Organizing knowledge processes in the multinational corporation: an introduction," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 340-349, September.
    37. Thomas Hutzschenreuter & Torben Pedersen & Henk W Volberda, 2007. "The role of path dependency and managerial intentionality: a perspective on international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1055-1068, December.
    38. Andrew C. Inkpen, 2000. "Learning Through Joint Ventures: A Framework Of Knowledge Acquisition," Journal of Management Studies, Wiley Blackwell, vol. 37(7), pages 1019-1044, November.
    39. March, James G., 2005. "Parochialism in the Evolution of a Research Community: The Case of Organization Studies," Management and Organization Review, Cambridge University Press, vol. 1(01), pages 5-22, March.
    40. Klaus E Meyer & Mike W Peng, 2005. "Probing theoretically into Central and Eastern Europe: transactions, resources, and institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 600-621, November.
    41. Jose I Galan & Javier Gonzalez-Benito & Jose A Zuñiga-Vincente, 2007. "Factors determining the location decisions of Spanish MNEs: an analysis based on the investment development path," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 975-997, November.
    42. Forsgren, M., 2002. "The concept of learning in the Uppsala internationalization process model: a critical review," International Business Review, Elsevier, vol. 11(3), pages 257-277, June.
    43. Bruce Kogut, 1991. "Joint Ventures and the Option to Expand and Acquire," Management Science, INFORMS, vol. 37(1), pages 19-33, January.
    44. Gloria Ge & Daniel Ding, 2008. "A strategic analysis of surging Chinese manufacturers: The case of Galanz," Asia Pacific Journal of Management, Springer, vol. 25(4), pages 667-683, December.
    45. Nippa, Michael & Beechler, Schon & Klossek, Andreas, 2007. "Success Factors for Managing International Joint Ventures: A Review and an Integrative Framework," Management and Organization Review, Cambridge University Press, vol. 3(02), pages 277-310, July.
    46. Benjamin M Oviatt & Patricia Phillips McDougall, 1994. "Toward a Theory of International New ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 45-64, March.
    47. Pitelis, Christos, 2007. "Edith Penrose and a learning-based perspective on the MNE and OLI," MPRA Paper 24318, University Library of Munich, Germany.
    48. Bert Flier & Frans A. J. Van Den Bosch & Henk W. Volberda, 2003. "Co-evolution in Strategic Renewal Behaviour of British, Dutch and French Financial Incumbents: Interaction of Environmental Selection, Institutional Effects and Managerial Intentionality," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2163-2187, December.
    49. Li, Peter Ping, 2007. "Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers," Journal of International Management, Elsevier, vol. 13(3), pages 296-318, September.
    50. Harry G Barkema & Rian Drogendijk, 2007. "Internationalising in small, incremental or larger steps?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1132-1148, December.
    51. Shih-Fen S Chen, 2005. "Extending internalization theory: a new perspective on international technology transfer and its generalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 231-245, March.
    52. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    53. David A Griffith & Salih Tamer Cavusgil & Shichun Xu, 2008. "Emerging themes in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1220-1235, October.
    54. Henk W. Volberda & Arie Y. Lewin, 2003. "Co-evolutionary Dynamics Within and Between Firms: From Evolution to Co-evolution," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2111-2136, December.
    55. Shaker A Zahra, 2005. "A theory of international new ventures: a decade of research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 20-28, January.
    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. Felzensztein, Christian & Stringer, Christina & Benson-Rea, Maureen & Freeman, Susan, 2014. "International marketing strategies in industrial clusters: Insights from the Southern Hemisphere," Journal of Business Research, Elsevier, vol. 67(5), pages 837-846.
    2. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    3. Lee, Joosung J. & Yoon, Hyungseok, 2015. "A comparative study of technological learning and organizational capability development in complex products systems: Distinctive paths of three latecomers in military aircraft industry," Research Policy, Elsevier, vol. 44(7), pages 1296-1313.
    4. repec:eee:iburev:v:27:y:2018:i:3:p:543-562 is not listed on IDEAS
    5. Luo, Yadong & Zhang, Huan, 2016. "Emerging Market MNEs: Qualitative Review and Theoretical Directions," Journal of International Management, Elsevier, vol. 22(4), pages 333-350.
    6. Jiang, Marshall S. & Branzei, Oana & Xia, Jun, 2016. "DIY: How internationalization shifts the locus of indigenous innovation for Chinese firms," Journal of World Business, Elsevier, vol. 51(5), pages 662-674.
    7. Dutta, Dev K. & Malhotra, Shavin & Zhu, PengCheng, 2016. "Internationalization process, impact of slack resources, and role of the CEO: The duality of structure and agency in evolution of cross-border acquisition decisions," Journal of World Business, Elsevier, vol. 51(2), pages 212-225.
    8. Powell, K. Skylar & Lim, Eunah, 2017. "Investment motive as a moderator of cultural-distance and relative knowledge relationships with foreign subsidiary ownership structure," Journal of Business Research, Elsevier, vol. 70(C), pages 255-262.
    9. repec:eee:jouret:v:88:y:2012:i:2:p:191-205 is not listed on IDEAS
    10. Gaffney, Nolan & Cooper, Danielle & Kedia, Ben & Clampit, Jack, 2014. "Institutional transitions, global mindset, and EMNE internationalization," European Management Journal, Elsevier, vol. 32(3), pages 383-391.
    11. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    12. Jones, Geoffrey & Pitelis, Christos, 2015. "Entrepreneurial Imagination and a Demand and Supply-side Perspective on the MNE and Cross-border Organization," Journal of International Management, Elsevier, vol. 21(4), pages 309-321.
    13. Jindra, Björn & Hassan, Sohaib S. & Cantner, Uwe, 2016. "What does location choice reveal about knowledge-seeking strategies of emerging market multinationals in the EU?," International Business Review, Elsevier, vol. 25(1), pages 204-220.
    14. Lynch, Richard & Jin, Zhongqi, 2016. "Knowledge and innovation in emerging market multinationals: The expansion paradox," Journal of Business Research, Elsevier, vol. 69(5), pages 1593-1597.
    15. Satta, Giovanni & Parola, Francesco & Persico, Luca, 2014. "Temporal and Spatial Constructs in Service Firms' Internationalization Patterns: The Determinants of the Accelerated Growth of Emerging MNEs," Journal of International Management, Elsevier, vol. 20(4), pages 421-435.
    16. Bangara, Athena & Freeman, Susan & Schroder, William, 2012. "Legitimacy and accelerated internationalisation: An Indian perspective," Journal of World Business, Elsevier, vol. 47(4), pages 623-634.

    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:intman:v:16:y:2010:i:1:p:43-59. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.