International Expansion Speed and Performance-The Moderating Effect of Organizational Absorption Capability

• Main Authors: Hsin-Yi Lin, 林欣宜
• Other Authors: Wen-Tsung Hsu
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/40872673299380860051

碩士 === 銘傳大學 === 國際企業學系碩士班 === 97 === The Uppsala school believes that international expansion increased gradually has a positive impact on a firm’s performance. However, in recent years some studies have found that a few firms adopt jumpy or fast expansion way. Based on resource theory, this research proposes that under time compression, firms’ fast international expansion would result in insufficient resources and incomplete knowledge of foreign markets, which will have a negative impact on firms’ performance. Moreover, this research included inside situations of an organization for the moderating effects of international expansion on performance. The results suggest that more international experience and more differential capability will release the negative impact of fast international expansion on performance. The study used cross sections (panel data) from 2002 to 2006 of the Taiwan IT industry to discuss the relationship between the international expansion and firm performance. The 1555 samples of the study had been collected by the public second data from 311 companies to identify the above relationships. The empirical results indicate that there is a negative linear relationship between the speed of international expansion and performance. As to the moderating effect, the R&D and marketing capabilities will release the negative impact of fast international expansion on performance. However, international experience has no significant moderating effect.