Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

Dual Network Embeddedness of the Host Country, Organizational Improvisational Capability, and International Entrepreneurial Performance

  • Qixia Du (School of Health Economics and Management, Nanjing University of Chinese Medicine) ;
  • Yeong-Gil Kim (Department of Global Trade and Management, Shinhan University)
  • Received : 2023.06.30
  • Accepted : 2023.08.11
  • Published : 2023.08.31
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - Along with emerging international entrepreneurship, there is a need for exploring the influencing mechanism of dual network embeddedness of the host country on international entrepreneurial performance. Drawing on network embeddedness theory and organizational improvisational theory, the present study constructs a theoretical model regarding the logic relationships between the dual network embeddedness of the host country, organizational improvisational capability, and international entrepreneurial performance. Design/methodology - Using a questionnaire survey, our study conducted data in two ways. The final research sample comprised 129 international new ventures. To test the hypotheses, a three-step mediation test method was conducted. Findings - Our empirical results suggested that both host-country social network embeddedness and industrial network embeddedness significantly affected the international entrepreneurial performance. Organizational improvisational capability significantly affected the international entrepreneurial performance. Third, organizational improvisational capability partially played mediating role in the relationship between the dual network embeddedness of the host country and international entrepreneurial performance. Originality/value - This study mainly concentrates on the two important types of host-country networks, host-country social network embeddedness and industrial network embeddedness, that may help international new ventures access the strategic resources necessary to support performance. Thus, it extends the existing network embeddedness theory and improvisational theory to encompass international entrepreneurship.

Keywords

Acknowledgement

This work was supported by the National Natural Science Foundation of China" (NSFC grant no. 71972103; 71872087).

References

  1. Baron, R. M. and D. A. Kenny (1986), "The Moderator-mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations", Journal of personality and social psychology, 51(6), 1173-82. https://doi.org/10.1037/0022-3514.51.6.1173
  2. Belenzon, S., N. Hashai and A. Patacconi (2019), "The Architecture of Attention: Group Structure and Subsidiary Autonomy", Strategic Management Journal, 40(10), 1610-1643. https://doi.org/10.1002/smj.3059
  3. Bell, R. G., I. Filatotchev and R. Aguilera (2014), "Corporate Governance and Investors' Perceptions of Foreign IPO Value: An Institutional Perspective", Academy of Management Journal, 57(1): 301-320. https://doi.org/10.5465/amj.2011.0146
  4. Berry, H. (2015), "Knowledge Inheritance in Global Industries: The Impact of Parent Firm Knowledge on the Performance of Foreign Subsidiaries", Academy of Management Journal, 58(5), 1438-1458. https://doi.org/10.5465/amj.2013.0724
  5. Bridoux, F., R. Coeurderoy and R. Durand (2017), "Heterogeneous Social Motives and Interactions: The Three Predictable Paths of Capability Development", Strategic Management Journal, 38(9), 1755-1773. https://doi.org/10.1002/smj.2605
  6. Cavusgil S. T. and G. Knight (2015), "The Born Global Firm: An Entrepreneurial and Capabilities Perspective on Early and Rapid Internationalization", Journal of International Business Studies, 46(1), 3-16. https://doi.org/10.1057/jibs.2014.62
  7. Chandra, A., J. Paul and M. Chavan (2020), "Internationalization Barriers of SMEs from Developing Countries: A Review and Research Agenda", International Journal of Entrepreneurial Behaviour & Research, 26(6), 1281-1310.
  8. Chen X. and Q. R. An (2022), "When does Improvisational Capability Matter to International Entrepreneurship? The Contingent Role of Home-based Network Ties and the Boundary Condition of Competitive Turbulence", Journal of Korea Trade, 26(7), 59-76. https://doi.org/10.35611/jkt.2022.26.7.59
  9. Coffey, J., F. Farivar and R. Cameron (2021), "The Job Seeking Experiences of International Graduates in the Host Country: Australia's Lost Opportunity", International Journal of Human Resource Management, 32(4), 1-25. https://doi.org/10.1080/09585192.2018.1504106
  10. Drechsler, J., J. Bachmann and A. Engelen (2019), "The Effect of Immigrants in the Founding Team on the International Attention of New Ventures", Journal of International Entrepreneurship, 17(3), 305-333. https://doi.org/10.1007/s10843-019-00248-1
  11. Granovetter, M. (1985), "Economic Action and Social Structure: A Theory of Embeddedness", American Journal of Sociology, 91(3), 481- 510. https://doi.org/10.1086/228311
  12. Gross, U. (2014), "Fighting the Fire: Improvisational Behavior During the Production Launch of New Products", International Journal of Operations & Production Management, 34(6), 722-749.
  13. Heggestad, E. D., D. J. Scheaf, G. C. Banks, M. M. Hausfeld, S. Tonidandel and E. B. Williams (2019), "Scale Adaptation in Organizational Science Research: A Review and Best-practice Recommendations", Journal of Management, 45(6), 2596-2627. https://doi.org/10.1177/0149206319850280
  14. Helfat, C. E. and J.A. Martin (2015), "Dynamic Managerial Capabilities: Review and Assessment of Managerial Impact on Strategic Change", Journal of management, 41(5), 1281-1312. https://doi.org/10.1177/0149206314561301
  15. Hogetoorn, B. and M. Gerritse (2021), "The Impact of Terrorism on International Mergers and Acquisitions: Evidence from Firm-level Decisions", Journal of Peace Research, 58(3), 523-538. https://doi.org/10.1177/0022343319900207
  16. Hu, L. Y., J. B. Gu, J. L. Wu and A. A. Lado (2018), "Regulatory Focus, Environmental Turbulence, and Entrepreneur Improvisation", International Entrepreneurship Management Journal, 14, 129-148. https://doi.org/10.1007/s11365-017-0446-7
  17. Hunt, R. A., Y. Song, D. M. Townsend and M. Stallkamp (2021), "Internationalization of Entrepreneurial Firms: Leveraging Real Options Reasoning Through Affordable Loss Logics", Journal of Business Research, 133, 194-207. https://doi.org/10.1016/j.jbusres.2021.04.055
  18. Li, Q., P .G. Maggitti, K. G. Smith, P. E. Tesluk and R. Katila (2013), "Top Management Attention to Innovation: The Role of Search Selection and Intensity in New Product Introductions", Academy of Management Journal, 56(3), 893-916. https://doi.org/10.5465/amj.2010.0844
  19. Liu, Y., D. Lv, Y. Ying, F. Arndt and J. Wei (2018), "Improvisation for Innovation: The Contingent Role of Resource and Structural Factors in Explaining Innovation Capability", Technovation, 74-75: 32-41. https://doi.org/10.1016/j.technovation.2018.02.010
  20. Monteiro, L. P. (2015), "Selective Attention and the Initiation of the Global Knowledge-sourcing Process in Multinational Corporations", Journal of International Business Studies, 46(5), 505-527. https://doi.org/10.1057/jibs.2014.72
  21. Musteen, M., D. K. Datta and M. M. Butts (2014), "Do International Networks and Foreign Market Knowledge Facilitate SME Internationalization? Evidence from the Czech Republic", Entrepreneurship Theory and Practice, 38(4), 749-774.  https://doi.org/10.1111/etap.12025
  22. Pavlou, P. A. and O. A. El Sawy (2010), "The 'Third Hand': IT-enabled Competitive Advantage in Turbulence Through Improvisational Capabilities", Information Systems Research, 21(3), 443-471. https://doi.org/10.1287/isre.1100.0280
  23. Podsakoff, P. M., S. B. MacKenzie and N. P. Podsakoff (2016), "Recommendations for Creating Better Concept Definitions in the Organizational, Behavioral, and Social Sciences", Organizational Research Methods, 19(2), 159-203. https://doi.org/10.1177/1094428115624965
  24. Rimante, S. (2019), "Networks' Impact on the Entrepreneurial Internationalization: A Literature Review and Research Agenda", Management International Review, 59, 779-823.
  25. Schilke, O., S. Hu and C. E. Helfat (2018), "Quo Vadis, Dynamic Capabilities? A Content-analytic Review of the Current State of Knowledge and Recommendations for Future Research", Academy of Management Annals, 12(1), 390-439. https://doi.org/10.5465/annals.2016.0014
  26. Schwens, C., F. B. Zapkau, M. Bierwerth, R. Isidor and G. Knight (2018), "International Entrepreneurship: A Meta-analysis on the Internationalization and Performance Relationship", Entrepreneurship Theory & Practice, 42(5), 734-768.
  27. Seshadri, S. and Z. Shapira (2021), "Managerial Allocation of Time and Effort: The Effects of Interruptions", Management Science, 47(5), 647-662. https://doi.org/10.1287/mnsc.47.5.647.10481
  28. Srivastava, S., S. Singh and S. Dhir (2020), "Culture and International Business Research: A Review and Research Agenda", International Business Review, 29(4), 101709.
  29. Stoyanov, S. (2018), "Enabling Social Identity Interaction: Bulgarian Migrant Entrepreneurs Building Embeddedness into a Transnational Network", British Journal of Management, 29(2), 373-388. https://doi.org/10.1111/1467-8551.12235
  30. Su, D.J. and Y.G. Kim (2022), "What Promotes International Sustainable Development of Green ventures? The Joint Effects of Entrepreneurial Orientation and Home Country-based Networks", Journal of Korea Trade, 26(4), 39-62. https://doi.org/10.35611/jkt.2022.26.4.39
  31. Teece, D. J. (2018), "Business models and dynamic capabilities", Long Rang Planning, 51(1), 40-49. https://doi.org/10.1016/j.lrp.2017.06.007
  32. Thompson, C. G., R. S. Kim, A. M. Aloe and B. J. Becker (2017), "Extracting the Variance Inflation Factor and Other Multicollinearity Diagnostics from Typical Regression Results", Basic and Applied Social Psychology, 39(2), 81-90. https://doi.org/10.1080/01973533.2016.1277529
  33. Vera, D., L. Nemanich, S. Werner (2016), "Knowledge-based and Contextual Factors Associated with R&D Teams' Improvisation Capability", Journal of Management, 42(7), 1874-1903.
  34. Xie, Z. and J. Li (2017), Exporting and Innovating among Emerging Market Firms: the Moderating Role of Institutional Development", Journal of International Business Studies, 49(2), 1-24. https://doi.org/10.1057/s41267-017-0118-4
  35. Zahra, S. A., L R. Newey and Y. Li (2014), "On the Frontiers: The Implications of Social Entrepreneurship for International Entrepreneurship", Entrepreneurship Theory and Practice, 38(1), 137-158. https://doi.org/10.1111/etap.12061
  36. Zander, I., P. McDougall-Covin and E. Rose (2015), "Born Globals and International Business: Evolution of a Field of Research", Journal of International Business Studies, 46(1), 27-35. https://doi.org/10.1057/jibs.2014.60
  37. Zhang, J. and A. Pezeshkan (2016), "Host Country Network, Industry Experience, and International Alliance Formation: Evidence from the Venture Capital Industry", Journal of World Business, 51(2), 264-277. https://doi.org/10.1016/j.jwb.2015.10.008
  38. Zhang, X., X. Ma, Y. Wang and D. Huo (2016), "What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership", International Business Review, 25(2), 522-534. https://doi.org/10.1016/j.ibusrev.2015.09.001
  39. Zhao, Y., R. Parente, S. Fainshmidt and S. Carnovale (2021), "MNE Host-country Alliance Network Position and Post-entry Establishment Mode Choice", Journal of International Business Studies, 52, 1350-1364.  https://doi.org/10.1057/s41267-021-00414-5