IDEAS home Printed from https://ideas.repec.org/a/pal/abaman/v17y2018i4d10.1057_s41291-018-0040-z.html
   My bibliography  Save this article

Internationalization and longevity of Korean SMEs: the moderating role of contingent factors

Author

Listed:
  • Jaeyoung Cho

    (Kyungpook National University)

  • Jangwoo Lee

    (Kyungpook National University)

Abstract

This study examines the effects of the degree of internationalization (DOI) on the longevity of SMEs and the moderating role of tangible and intangible resources and industry globalization. Using a sample of listed Korean SMEs, we identify an inverted U-shaped curvilinear link between DOI and SME longevity. In addition, SME longevity peaks at the higher DOI when tangible and intangible resources and industry globalization are high. The findings support the liabilities of the newness and smallness perspective that an organization’s internal and external contingencies play crucial roles in achieving the optimal DOI for SME longevity.

Suggested Citation

  • Jaeyoung Cho & Jangwoo Lee, 2018. "Internationalization and longevity of Korean SMEs: the moderating role of contingent factors," Asian Business & Management, Palgrave Macmillan, vol. 17(4), pages 260-285, September.
    • Handle: RePEc:pal:abaman:v:17:y:2018:i:4:d:10.1057_s41291-018-0040-z
    DOI: 10.1057/s41291-018-0040-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41291-018-0040-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41291-018-0040-z?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. So Won Jeong & Byoungho Jin & Jae-Eun Chung & Heesoon Yang, 2017. "Network evolution and cultivation patterns during the internationalization process: case analyses from Korean SMEs," Asian Business & Management, Palgrave Macmillan, vol. 16(4), pages 323-351, December.
    2. Lenn Gomes & Kannan Ramaswamy, 1999. "An Empirical Examination of the Form of the Relationship Between Multinationality and Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 173-187, March.
    3. Robert Salomon & Xavier Martin, 2008. "Learning, Knowledge Transfer, and Technology Implementation Performance: A Study of Time-to-Build in the Global Semiconductor Industry," Management Science, INFORMS, vol. 54(7), pages 1266-1280, July.
    4. Jiang, Guohua & Kotabe, Masaaki & Hamilton, Robert D. & Smith, Sheryl Winston, 2016. "Early internationalization and the role of immigration in new venture survival," International Business Review, Elsevier, vol. 25(6), pages 1285-1296.
    5. Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 325-342, June.
    6. Hicheon Kim & Heechun Kim & Peggy M. Lee, 2008. "Ownership Structure and the Relationship Between Financial Slack and R&D Investments: Evidence from Korean Firms," Organization Science, INFORMS, vol. 19(3), pages 404-418, June.
    7. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    8. Richard F. J. Haans & Constant Pieters & Zi-Lin He, 2016. "Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1177-1195, July.
    9. Morck, Randall & Yeung, Bernard, 1991. "Why Investors Value Multinationality," The Journal of Business, University of Chicago Press, vol. 64(2), pages 165-187, April.
    10. Joshua D. Angrist & Alan B. Krueger, 1993. "Split Sample Instrumental Variables," Working Papers 699, Princeton University, Department of Economics, Industrial Relations Section..
    11. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    12. Stephen J. Kobrin, 1991. "An empirical analysis of the determinants of global integration," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 17-31, June.
    13. Kannan Ramaswamy & K Galen Kroeck & William Renforth, 1996. "Measuring the Degree of Internationalization of a firm: A Comment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(1), pages 167-177, March.
    14. Margarethe F. Wiersema & Harry P. Bowen, 2008. "Corporate diversification: the impact of foreign competition, industry globalization, and product diversification," Strategic Management Journal, Wiley Blackwell, vol. 29(2), pages 115-132, February.
    15. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July.
    16. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    17. Chang Liu & Chune Young Chung & Hong Kee Sul & Kainan Wang, 2018. "Does hometown advantage matter? The case of institutional blockholder monitoring on earnings management in Korea," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 196-221, February.
    18. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    19. José C Casillas & Ana M Moreno-Menéndez, 2014. "Speed of the internationalization process: The role of diversity and depth in experiential learning," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 85-101, January.
    20. Justin Tan & Mike W. Peng, 2003. "Organizational slack and firm performance during economic transitions: two studies from an emerging economy," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1249-1263, December.
    21. Lianxi Zhou & Wei-ping Wu & Xueming Luo, 2007. "Internationalization and the performance of born-global SMEs: the mediating role of social networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 673-690, July.
    22. Angrist, Joshua D & Krueger, Alan B, 1995. "Split-Sample Instrumental Variables Estimates of the Return to Schooling," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 225-235, April.
    23. Edward M. Graham, 1978. "Transatlantic Investment by Multinational Firms: A Rivalistic Phenomenon?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 1(1), pages 82-99, October.
    24. Pangarkar, Nitin, 2008. "Internationalization and performance of small- and medium-sized enterprises," Journal of World Business, Elsevier, vol. 43(4), pages 475-485, October.
    25. Sui Sui & Matthias Baum, 2014. "Internationalization strategy, firm resources and the survival of SMEs in the export market," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(7), pages 821-841, September.
    26. repec:fth:michin:282 is not listed on IDEAS
    27. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    28. N Capar & M Kotabe, 2003. "The relationship between international diversification and performance in service firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 345-355, July.
    29. Guktae Kim & Moon-Goo Huh, 2015. "Exploration and organizational longevity: The moderating role of strategy and environment," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 389-414, June.
    30. Hsu, Wen-Tsung & Chen, Hsiang-Lan & Cheng, Chia-Yi, 2013. "Internationalization and firm performance of SMEs: The moderating effects of CEO attributes," Journal of World Business, Elsevier, vol. 48(1), pages 1-12.
    31. Majocchi Antonio & Zucchella Antonella, 2001. "Internationalization and Performance: findings from a set of Italian SMEs," Economics and Quantitative Methods qf0110, Department of Economics, University of Insubria.
    32. 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.
    33. Sea-Jin Chang & Jay Hyuk Rhee, 2011. "Rapid FDI expansion and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(8), pages 979-994, October.
    34. A Rebecca Reuber & Eileen Fischer, 1997. "The Influence of the Management Team’s International Experience on the Internationalization Behaviors of SMES," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 807-825, December.
    35. Ram Mudambi & Shaker A Zahra, 2007. "The survival of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 333-352, March.
    36. Valentina Marano & Jean-Luc Arregle & Michael Hitt & Ettore Spadafora & Marc van Essen, 2016. "Home Country Institutions and the Internationalization-Performance Relationship : A Meta-Analytic Review," Post-Print hal-02313365, HAL.
    37. Jaeyoung Cho & Jangwoo Lee, 2018. "Internationalization and performance of Korean SMEs: the moderating role of competitive strategy," Asian Business & Management, Palgrave Macmillan, vol. 17(2), pages 140-166, 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. Jaeyoung Cho, 2024. "Thriving in the global competitive landscape: competitive dynamics and longevity of emerging market firms," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 82-109, February.
    2. Jungeun Lee & Hye-Young Joo, 2020. "The Impact of Top Management’s Support on the Collaboration of Green Supply Chain Participants and Environmental Performance," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    3. Jaeyoung Cho & Jangwoo Lee, 2020. "Speed of FDI expansions and the survival of Korean SMEs: the moderating role of ownership structure," Asian Business & Management, Palgrave Macmillan, vol. 19(2), pages 184-212, April.
    4. Eunmi Tatum Lee & Young-Ryeol Park & Jooyoung Kwak, 2023. "Knowledge distance and innovation performance: the moderating role of internationalization breadth and depth," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 1131-1154, July.
    5. Xuelin Bu & Limin Chen, 2023. "From efficiency to legitimacy: the changing logic of internal CSR in emerging multinationals during internationalization," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1418-1453, September.
    6. Knight, Gary & Moen, Øystein & Madsen, Tage Koed, 2020. "Antecedents to differentiation strategy in the exporting SME," International Business Review, Elsevier, vol. 29(6).
    7. Stephan Gerschewski & Natasha Evers & Anh Tuan Nguyen & Fabian Jintae Froese, 2020. "Trade Shows and SME Internationalisation: Networking for Performance," Management International Review, Springer, vol. 60(4), pages 573-595, August.
    8. Tajeddin, Mahdi & Farashahi, Mehdi & Moghaddam, Kaveh & Simba, Amon & Edwards, Gwyneth, 2023. "Internationalization of Emerging Economy SMEs: A Tripod Approach," Journal of International Management, Elsevier, vol. 29(1).

    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. Jaeyoung Cho & Jangwoo Lee, 2020. "Speed of FDI expansions and the survival of Korean SMEs: the moderating role of ownership structure," Asian Business & Management, Palgrave Macmillan, vol. 19(2), pages 184-212, April.
    2. Jaeyoung Cho & Jangwoo Lee, 2018. "Internationalization and performance of Korean SMEs: the moderating role of competitive strategy," Asian Business & Management, Palgrave Macmillan, vol. 17(2), pages 140-166, April.
    3. Phuong V. Nguyen & Hien Thi Ngoc Huynh & Hoa Doan Xuan Trieu & Khoa T. Tran, 2019. "Internationalization, Strategic Slack Resources, and Firm Performance: The Case Study of Vietnamese Enterprises," JRFM, MDPI, vol. 12(3), pages 1-24, September.
    4. Sandberg, Susanne & Sui, Sui & Baum, Matthias, 2019. "Effects of prior market experiences and firm-specific resources on developed economy SMEs' export exit from emerging markets: Complementary or compensatory?," Journal of Business Research, Elsevier, vol. 98(C), pages 489-502.
    5. Jiang, Guohua & Kotabe, Masaaki & Zhang, Feng & Hao, Andy W. & Paul, Justin & Wang, Cheng Lu, 2020. "The determinants and performance of early internationalizing firms: A literature review and research agenda," International Business Review, Elsevier, vol. 29(4).
    6. Joonho Shin & Xavier Mendoza & Changbum Choi, 2022. "Do internationalizing business group affiliates perform better after promarket reforms? Evidence from Korean SMEs," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 805-841, June.
    7. Zhang, Yufeng & Yang, Zhibo & Zhang, Tao, 2018. "Strategic resource decisions to enhance the performance of global engineering services," International Business Review, Elsevier, vol. 27(3), pages 678-700.
    8. 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.
    9. Morgan, Horatio M. & Sui, Sui & Baum, Matthias, 2018. "Are SMEs with immigrant owners exceptional exporters?," Journal of Business Venturing, Elsevier, vol. 33(3), pages 241-260.
    10. Sui Sui & Matthias Baum & Shavin Malhotra, 2019. "How Home-Peers Affect the Export Market Exit of Small Firms: Evidence From Canadian Exporters," Entrepreneurship Theory and Practice, , vol. 43(5), pages 1018-1045, September.
    11. Baum, Matthias & Schwens, Christian & Kabst, Ruediger, 2015. "A latent class analysis of small firms’ internationalization patterns," Journal of World Business, Elsevier, vol. 50(4), pages 754-768.
    12. Christian Schwens & Florian B. Zapkau & Michael Bierwerth & Rodrigo Isidor & Gary Knight & Rüdiger Kabst, 2018. "International Entrepreneurship: A Meta–Analysis on the Internationalization and Performance Relationship," Entrepreneurship Theory and Practice, , vol. 42(5), pages 734-768, September.
    13. Paeleman, Ine & Fuss, Catherine & Vanacker, Tom, 2017. "Untangling the multiple effects of slack resources on firms’ exporting behavior," Journal of World Business, Elsevier, vol. 52(6), pages 769-781.
    14. Johanson, Martin & Martín Martín, Oscar, 2015. "The incremental expansion of Born Internationals: A comparison of new and old Born Internationals," International Business Review, Elsevier, vol. 24(3), pages 476-496.
    15. Garbe, Jan-Nicolas & Richter, Nicole Franziska, 2009. "Causal analysis of the internationalization and performance relationship based on neural networks -- advocating the transnational structure," Journal of International Management, Elsevier, vol. 15(4), pages 413-431, December.
    16. Benito-Osorio, Diana & Colino, Alberto & Guerras-Martín, Luis Ángel & Zúñiga-Vicente, José Ángel, 2016. "The international diversification-performance link in Spain: Does firm size really matter?," International Business Review, Elsevier, vol. 25(2), pages 548-558.
    17. Nguyen, Quyen T.K. & Kim, Sylvia, 2020. "The multinationality and performance relationship: Revisiting the literature and exploring the implications," International Business Review, Elsevier, vol. 29(2).
    18. Acedo, Francisco J. & Coviello, Nicole & Agustí, María, 2021. "Caution ahead! The long-term effects of initial export intensity and geographic dispersion on INV development," Journal of World Business, Elsevier, vol. 56(6).
    19. de Jong, Gjalt & van Houten, Jerry, 2014. "The impact of MNE cultural diversity on the internationalization-performance relationship," International Business Review, Elsevier, vol. 23(1), pages 313-326.
    20. Hadi Fariborzi & Mohammad Keyhani, 2018. "Internationalize to live: a study of the post-internationalization survival of new ventures," Small Business Economics, Springer, vol. 50(3), pages 607-624, March.

    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:pal:abaman:v:17:y:2018:i:4:d:10.1057_s41291-018-0040-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.