Our study reveals the financial performance implications of the speed at which Chinese multinational enterprises (CMNEs) expand into intra-regional versus inter-regional host countries. In doing so, we propose a framework that integrates internationalization speed and home regionalization literatures. Using data from 767 publicly listed CMNEs from the years 2002 to 2014, we discover that the faster the intra-regional internationalization, the better the firm’s financial performance, whereas faster inter-regional internationalization demonstrates a poorer financial performance. We also find that fast-mover CMNEs’ technological and marketing resources are valuable in intra-regional host countries, but vulnerable in inter-regional host countries. We discuss the implications of these findings for studies of the Uppsala internationalization process model and regional MNEs.
We thank Area Editor Klaus Meyer and three anonymous reviewers for their insightful and constructive comments on earlier drafts. This research was supported by grants from National Natural Science Foundation of China (No. 71728003) and University of Macau MYRG (No. MYRG 2016-00207-FBA/ MYRG2018-00171-FBA) to the second author.
- Chinese multinational enterprises
- fast-mover (dis)advantages
- financial performance
- home regionalization
- internationalization speed