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Korea Trade Research Association (한국무역학회)
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When does Improvisational Capability Matter to International Entrepreneurship? The Contingent Role of Home-Based Network Ties and the Boundary Condition of Competitive Turbulence

  • Xiaolin Chen (School of Marketing and Logistics Management, Nanjing University of Finance and Economics) ;
  • Qin Rui An (Rinascita College of Liberal Arts and Science, Shinhan University)
  • Received : 2022.07.04
  • Accepted : 2022.10.07
  • Published : 2022.11.30
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Abstract

Purpose - As ahigher-order ability, improvisational capability is often employed to help a firm cope with unexpected or unanticipated issues. In light of the severe global business challenges and turbulent environmental changes, this study aimed to explore whether home-based network ties could shape the influence of improvisational capability on international entrepreneurship, alongside investigating the boundary conditions of competitive turbulence in their moderating effects. Design/methodology - The sample for the international entrepreneurship sector was obtained from the Industry and Information Technology Department of Jiangsu. In September 2021, the questionnaires were sent to the targeted ventures and required the top managers to complete the survey by email or telephone. The final research sample comprised 113 international new ventures. To test the hypotheses, moderated hierarchical regression analysis was conducted. Findings - Our empirical results suggested that (1) unlike some previous literature, a positive effect of improvisational capability on the performance of international new ventures was not found; (2) home country-based networks (both political ties and business ties) are contingent factors that may partially stimulate the value creation of improvisational capability; and (3) in a highly competitive environment, the moderating role of business ties at home may become much stronger, however, the contingent role of political ties at home was not found. Originality/value - This study mainly concentrates on the two important types of home country-based networks, political and business ties at home, that may help international new ventures access strategic resources necessary for supporting the performance implications of improvisational capability. Thus, it extends the existing improvisational theory to encompass international entrepreneurship.

Keywords

Acknowledgement

This study is granted from the "National Natural Science Foundation of China" (NSFC grant no. 71972103) and the "National Social Science Foundation of China(grant no. 19BGL081).

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