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Foreign expansion pressure in the digital era: online media-based institutional pressure and internationalization

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  • Yang, Young Soo
  • Shin, Dongyoub

Abstract

This study posits that in today’s digital era, firms experience significant isomorphic pressures via online media. Therefore, this study examines the extent to which online media coverage influences firms’ international strategies. Drawing upon institutional theory, particularly DiMaggio and Powell’s (1983) institutional pressure framework, we propose that online media exerts a form of isomorphic pressure, compelling firms to pursue internationalization through three key mechanisms: coercive, mimetic, and normative pressures. We also suggest that the newness of a firm’s recent international experience plays a moderating role. The empirical analysis of this study was conducted on a longitudinal panel dataset comprising 6,097 observations of Korean firms listed on the KOSPI markets from 2010 to 2022. After controlling for effects from non-media-based institutional pressures, we found significant empirical support for the role of online media-driven institutional pressures in shaping firms’ internationalization strategies. Specifically, among the three institutional pressures, online media-based coercive and mimetic pressures were positively related to a firm’s foreign expansion, whereas the effect of normative pressure was not statistically significant. We also found that the newness of international experience weakens the impact of both media-based mimetic and coercive pressure on a firm’s foreign expansion. This study contributes to institutional theory and international business research by providing empirical evidence on how online media exert institutional pressure to shape a firm’s foreign expansion strategy in digital era.

Suggested Citation

  • Yang, Young Soo & Shin, Dongyoub, 2026. "Foreign expansion pressure in the digital era: online media-based institutional pressure and internationalization," Journal of Business Research, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:jbrese:v:204:y:2026:i:c:s0148296325006927
    DOI: 10.1016/j.jbusres.2025.115869
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