| Institutional Quality and Internationalization of Emerging Market Firms: Focusing on Chinese SMEs |
Received:October 15, 2017 Revised:October 15, 2017 |
Key Words: Chinese SMEs; institutional quality, internationalization, managerial experience, international certification |
| Author Name | Affiliation | | Shuo Zhang0 | Central University of Finance and Economics | | Ping Deng* | Cleveland State University |
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Abstract: |
| With growing interest in institutional perspectives on emerging market firms (EMFs), we argue that the quality of domestic institutions exerts different impact on EMFs in their international venturing. Dividing the internationalization of Chinese small and medium-sized enterprises (SMEs) into two phases: internationalization decision-making and international development, we found that institutional quality is negatively associated with the propensity of SMEs to go overseas but positively associated with their overseas sales growth. These effects were contingent on firm characteristics of manager’s experience and possession of internationally-recognized certification. Based on stepwise analysis of internationalization of SMEs, we integrates dividing arguments on how home-country institutions influence EMFs and especially Chinese SMEs in their venturing across borders. |
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