Pre-liberalization foundations and the FDI-based internationalization of SMEs from emerging markets

Kumari, Sushma; Shirodkar, Vikrant; McGuire, Steven

Abstract

Research on the internationalization of small and medium enterprises based in emerging markets (EM-SMEs) is gaining momentum, yet, less is known about the specific factors that deter EM-SMEs’ from internationalizing via foreign direct investment (FDI). In this paper, using institutional and organizational imprinting perspectives, we argue that EM-SMEs founded in the era prior to market liberalization are less likely to internationalize via FDI than those founded during or after market liberalization. We also argue that this effect is moderated by EM-SMEs’ size and ownership dispersion. Our data used to test our hypotheses is based on 2277 SMEs from 14 emerging markets. Overall, we contribute to an improved understanding of the factors that determine the FDI-based internationalization of SMEs from emerging markets.

Citation

Kumari, S., Shirodkar, V., & McGuire, S. (2023). Pre-liberalization foundations and the FDI-based internationalization of SMEs from emerging markets. Management International Review, https://doi.org/10.1007/s11575-023-00508-2

• Journal Article Type: Article
• Acceptance Date: Feb 2, 2023
• Online Publication Date: Apr 12, 2023
• Publication Date: 2023
• Deposit Date: Mar 30, 2023
• Publicly Available Date: Apr 13, 2024
• Journal: Management International Review
• Print ISSN: 0938-8249
• Electronic ISSN: 1861-8901
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1007/s11575-023-00508-2
• Keywords: Small and medium enterprises; Market-liberalization; Institutional theory; Foreign direct investment; Internationalization; Emerging markets
• Public URL: https://hull-repository.worktribe.com/output/4254013