Institutional distance, internationalization speed and cross-border e-commerce platform utilization

Zichun Yan · Xiying Lu · Yan Chen · Kai Wang

69 citations0/0 files storedManagement Decision

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International Business and FDI Outsourcing and Supply Chain Management E-commerce and Technology Innovations

Abstract

Purpose From the perspective of the institution and internationalization speed, the article discusses the internal mechanism of cross-border e-commerce selection mode, as well as the moderating role of social networks as the intangible resource, and expand the theoretical system of corporate internationalization. Design/methodology/approach Based on the empirical data of 456 multinational e-commerce companies in five first-tier cities in China from 2016 to 2019, our research explores the selection mode of cross-border e-commerce. Findings The results show that (1) the institutional distance of the host country leads to the exit from cross-border e-commerce platforms in the international expansion of enterprises. (2) The difference in internationalization speed online and offline has become a mediated mechanism for the exit of cross-border e-commerce platforms due to the institutional distance of the host country. (3) The diversity and scale of offline social networks can weaken the impact of differences in internationalization speed on the exit from cross-border e-commerce platforms. (4) The resistance of companies expanding to countries with a weak institutional environment is greater than that experienced when expanding to countries with a strong one. Originality/value This study shows, for the first time, how to select expansion mode for cross-border e-commerce. And the paper also centers on the research of the impact of “social network”, a kind of intangible resource, on cross-border e-commerce platform adoption.

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References

1973The Strength of Weak Ties 1977The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments 2009The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership 1994Systems Competition and Network Effects 2007The determinants of Chinese outward foreign direct investment 1999Transnational Transfer of Strategic Organizational Practices: A Contextual Perspective 2005Defining International Entrepreneurship and Modeling the Speed of Internationalization 2002Network Ties, Reputation, and the Financing of New Ventures

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