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Emerging Market Multinational Companies and Internationalization: The Role of Home Country Urbanization

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  • Estrin, Saul
  • Nielsen, Bo B.
  • Nielsen, Sabina

Abstract

We develop a multilevel theoretical framework for investigating the role of home country urbanization for emerging market multinational companies' (EMNCs) international expansion. We propose that more urbanized home environments directly increase EMNC's proclivity to internationalize and moderate the effects of firm intangible and tangible resources. The empirical counterpart studies 592 EMNCs from 18 different countries in 2010 and an unbalanced panel of a subsample of these firms over the period 2006–2010. Our hypotheses are confirmed in both datasets. We find that while urbanization complements firm financial resources when expanding abroad, it appears to substitute to some extent for internal R&D capabilities. Our findings further our understanding of the drivers of internationalization of EMNCs.

Suggested Citation

  • Estrin, Saul & Nielsen, Bo B. & Nielsen, Sabina, 2017. "Emerging Market Multinational Companies and Internationalization: The Role of Home Country Urbanization," Journal of International Management, Elsevier, vol. 23(3), pages 326-339.
  • Handle: RePEc:eee:intman:v:23:y:2017:i:3:p:326-339
    DOI: 10.1016/j.intman.2016.11.006
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    Cited by:

    1. Schnyder, Gerhard & Sallai, Dorottya, 2020. "Between a rock and a hard place: Internal- and external institutional fit of MNE subsidiary political strategy in contexts of institutional upheaval," Journal of International Management, Elsevier, vol. 26(2).
    2. 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.
    3. Nielsen, Bo Bernhard & Raswant, Arpit, 2018. "The selection, use, and reporting of control variables in international business research: A review and recommendations," Journal of World Business, Elsevier, vol. 53(6), pages 958-968.
    4. Christine Côté & Saul Estrin & Daniel Shapiro, 0. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 0, pages 1-25.
    5. Yang, Jie, 2018. "Subnational Institutions and Location Choice of Emerging Market Firms," Journal of International Management, Elsevier, vol. 24(4), pages 317-332.

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