Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation Consequence
Implementing international strategy is essential to enhance corporate innovation and achieve sustainable development. Existing research has theoretically illustrated the concept and importance of carrying out both exploratory and exploitative internationalization, yet our understanding of the antece...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-11-01
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| Series: | Journal of Theoretical and Applied Electronic Commerce Research |
| Subjects: | |
| Online Access: | https://www.mdpi.com/0718-1876/16/7/170 |
| _version_ | 1797503035746811904 |
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| author | Hang Wu Yiying Qu |
| author_facet | Hang Wu Yiying Qu |
| author_sort | Hang Wu |
| collection | DOAJ |
| description | Implementing international strategy is essential to enhance corporate innovation and achieve sustainable development. Existing research has theoretically illustrated the concept and importance of carrying out both exploratory and exploitative internationalization, yet our understanding of the antecedents and consequences of both activities remains unclear. Based on the data of Chinese international manufacturing firms, this paper examines the differential effects of business, government and knowledge network capital on exploratory and exploitative internationalization, and probes into how organizational, strategic, and environmental factors moderate the innovation effectiveness of exploratory and exploitative internationalization. Results indicate that business network capital has the same positive impact on exploratory and exploitative internationalization; government network capital influences the implementation of exploratory internationalization, whereas knowledge network capital influences the execution of exploitative internationalization. Furthermore, our findings reveal that, to maximize innovation performance, pursuing exploratory internationalization is more beneficial for firms with older age, firms entering into countries with low host–home country similarity, and operating in a more dynamic international environment. By contrast, pursuing exploitative internationalization is more effective for younger firms, firms entering into countries with high host–home country similarity, and in more stable international environment. Theoretical and managerial implications are discussed. |
| first_indexed | 2024-03-10T03:44:45Z |
| format | Article |
| id | doaj.art-370d2227aee841d1bffb4779e3803ded |
| institution | Directory Open Access Journal |
| issn | 0718-1876 |
| language | English |
| last_indexed | 2024-03-10T03:44:45Z |
| publishDate | 2021-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Journal of Theoretical and Applied Electronic Commerce Research |
| spelling | doaj.art-370d2227aee841d1bffb4779e3803ded2023-11-23T09:09:39ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762021-11-011673120313510.3390/jtaer16070170Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation ConsequenceHang Wu0Yiying Qu1School of Economics, Jiaxing University, Jiaxing 314001, ChinaBusiness School, East China University of Political Science and Law, Shanghai 200042, ChinaImplementing international strategy is essential to enhance corporate innovation and achieve sustainable development. Existing research has theoretically illustrated the concept and importance of carrying out both exploratory and exploitative internationalization, yet our understanding of the antecedents and consequences of both activities remains unclear. Based on the data of Chinese international manufacturing firms, this paper examines the differential effects of business, government and knowledge network capital on exploratory and exploitative internationalization, and probes into how organizational, strategic, and environmental factors moderate the innovation effectiveness of exploratory and exploitative internationalization. Results indicate that business network capital has the same positive impact on exploratory and exploitative internationalization; government network capital influences the implementation of exploratory internationalization, whereas knowledge network capital influences the execution of exploitative internationalization. Furthermore, our findings reveal that, to maximize innovation performance, pursuing exploratory internationalization is more beneficial for firms with older age, firms entering into countries with low host–home country similarity, and operating in a more dynamic international environment. By contrast, pursuing exploitative internationalization is more effective for younger firms, firms entering into countries with high host–home country similarity, and in more stable international environment. Theoretical and managerial implications are discussed.https://www.mdpi.com/0718-1876/16/7/170business network capitalgovernment network capitalknowledge network capitalexploratory internationalizationexploitative internationalizationinnovation performance |
| spellingShingle | Hang Wu Yiying Qu Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation Consequence Journal of Theoretical and Applied Electronic Commerce Research business network capital government network capital knowledge network capital exploratory internationalization exploitative internationalization innovation performance |
| title | Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation Consequence |
| title_full | Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation Consequence |
| title_fullStr | Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation Consequence |
| title_full_unstemmed | Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation Consequence |
| title_short | Exploratory and Exploitative Internationalization: Effects of Social Capital Antecedents and Fit Moderators of Innovation Consequence |
| title_sort | exploratory and exploitative internationalization effects of social capital antecedents and fit moderators of innovation consequence |
| topic | business network capital government network capital knowledge network capital exploratory internationalization exploitative internationalization innovation performance |
| url | https://www.mdpi.com/0718-1876/16/7/170 |
| work_keys_str_mv | AT hangwu exploratoryandexploitativeinternationalizationeffectsofsocialcapitalantecedentsandfitmoderatorsofinnovationconsequence AT yiyingqu exploratoryandexploitativeinternationalizationeffectsofsocialcapitalantecedentsandfitmoderatorsofinnovationconsequence |