Internationalization Speed and International Performance among International New Ventures: The Moderating Role of Resource Synchronization
| Published date | 01 October 2023 |
| Author | Sheng Huang,Yunxia Zhu,Zhenkuo Ding,Chenming Chen |
| Date | 01 October 2023 |
| DOI | http://doi.org/10.1111/1467-8551.12697 |
British Journal of Management, Vol. 34, 2234–2262 (2023)
DOI: 10.1111/1467-8551.12697
Internationalization Speed and International
Performance among International New
Ventures: The Moderating Role of Resource
Synchronization
Sheng Huang,1Yunxia Zhu,2Zhenkuo Ding3and Chenming Chen3
1School of Business, Guangdong University ofForeign Studies, Guangzhou, 510006, China, 2School of
Business, The University of Queensland, St Lucia, QLD, 4072, Australia, and 3School of Economics and
Management, Guangxi Normal University, Guilin, 541006, China
Corresponding author email: 595177868@qq.com
Drawing upon the extended resource-based view, we examine the moderating effects of
resource synchronization on the performance implications of the speed at which interna-
tional new ventures (INVs) internationalize into emerging economies (EEs) versusdevel-
oped economies (DEs). Using a sample of INVs from China, we discover that both speeds
of internationalization into EEs and into DEs positively affect international performance,
but the speed of internationalization into DEs has a greater inuence. We also nd that
although resource synchronizationpositively moderates the relationships between the two
speeds and international performance, it has a greater moderating rolein the link between
the speed of internationalization into DEs and international performance. Our ndings
not only contribute to the INV approach by addressing the inconsistencies about the inter-
nationalization speed and performance relationship, but also advance the resource-based
view by offering a more complete understanding of resource-based performance advan-
tages.
Introduction
Internationalization speed refers to a ‘rm’s av-
erage rate ofinternational expansion’ (Chetty,
Johanson and Martín, 2014), which differs from
initial entry timing (Autio, Sapienzaand Almeida,
2000; Oviatt and McDougall, 2005). Understand-
ing the effect of internationalization speed on
performance among international new ventures
(INVs; Oviatt and McDougall, 1994) is widely
recognized as an important issue in the eld
of INV research (Huang et al., 2021), given an
increasing number of INVs internationalizing
rapidly (e.g. Deng, Jean and Sinkovics, 2018; Hen-
nart, Majocchi and Hagen, 2021) and theoretical
and empirical discords in extant literature. The-
oretically, accelerating internationalization speed
benets INVs by exploiting valuable resources
and transient foreign marketopportunitiesswiftly,
and acquiring new foreign market knowledge ef-
fectively (Sapienza et al., 2006; Zahra, Ireland and
Hitt, 2000). Nevertheless, expediting internation-
alization speed also impairsINVs’ performance
due to the greatly shortened time for exploiting
and developing rm-specic advantages and an
exponential increase in adjustment and coordina-
tion costs (Hilmersson and Johanson, 2016; Yayla
et al., 2018). Empirically, numerous INV studies
examining the performance of internationaliza-
tion speed have reported mixed ndings due to
these opposing arguments (e.g. Demir et al., 2021;
Kang, Zhao and Battisti, 2022; Sadeghi, Rose and
Chetty, 2018).
To reconcile the inconsistencies, prior research
on the internationalization speed and performance
relationship among INVs has proposed different
© 2022 British Academy of Management.
Internationalization Speed2235
operationalizationsof the mainvariablesof inter-
est, such as internationalization speed (Deng, Jean
and Sinkovics, 2018; Hilmersson and Johanson,
2016; Sadeghi, Rose and Chetty, 2018). Prior re-
search has also identied some moderators forthis
relationship, including slack resources, innovation
resources (Sui and Baum, 2014), the level of mar-
ket liberalization (Deng, Jeanand Sinkovics, 2018)
and coordination mechanisms (Demir et al., 2021).
Although previous research has contributed to
our understanding of this relationship, it is inade-
quate. For example, previous research has not yet
examined whether the speeds of internationaliza-
tion into emerging economies (EEs) and developed
economies (DEs) have different effects on interna-
tional performance. It has also paid little attention
to how resource synchronization from the ex-
tended resource-based view (Barney, Ketchen Jr
and Wright, 2011; Sirmon et al., 2011) moderates
this relationship. Resource synchronization refers
to an action involving the integration and balance
of interdependent resource bundles to ensure that
a rm’s business activities reinforce and align with
strategic and competitiveenvironments (Holcomb,
Holmes Jr and Connelly, 2009).
We argue that considering the speeds of inter-
nationalization into EEs and DEs and resource
synchronization is important for clarifying the
relationship between internationalization speed
and performance. Specically, the effects of inter-
nationalization speed on performance depend on
the destination location: EEs and DEs.Compared
with EEs, DEs provide rapid INVs with larger
and more protable market opportunities, and
more opportunities of acquiring and exploiting
sophisticated technological and marketknowledge
that are more valuable in DEs (Yamakawa, Peng
and Deeds, 2008, 2013; Zhou, Wu and Barnes,
2012). Thus, we predict that the speed of inter-
nationalization into DEs has a greater impact
on international performance than the speed of
internationalization into EEs.
Furthermore, the effects of the two speeds on
international performance vary with resource
synchronization. Accelerating the two speeds not
only exposes INVs to foreign market opportu-
nities swiftly and new foreign market knowledge
continually, but also enables INVs to have an
opportunity to exploit technological and foreign
market knowledge. The extended resource-based
view (Barney, Ketchen Jr and Wright, 2011) sug-
gests that while owning resources is necessary for
competitive advantage, they must be effectively
orchestrated to realize competitive advantage (Sir-
mon et al., 2011). According to this view, resource
synchronization requires sensitive identication
ofcustomers’ demands, improved adjustment and
coordination of resources, reduced friction and
information sharing (Carnes et al., 2021), which
facilitate the exploitation of foreign market op-
portunities and technological and foreign market
knowledge. Resource synchronization also allows
for effective interpretation (Hinds and Bailey,
2003), high learning exibility (Holcomb, Holmes
Jr and Connelly, 2009) and slack resources, which
promote the acquisition of new foreign market
knowledge. Therefore, we argue that resource
synchronization strengthens the relationships be-
tween both speeds and international performance
among INVs. We further expect that resource
synchronization has a greater moderating role in
the performance effect of the speed ofinterna-
tionalization into DEs than in that into EEs.
In light of the importance aforementioned, this
paper aims to investigate and compare the direct
inuences of thespeeds of internationalization
into EEs and DEs on international performance
and the moderating roles of resource synchro-
nization. To this end, we use the latent moderated
structural equation method and a sample of INVs
from China. This method resolves the problemsof
product indicator generation and the non-normal
distribution of product terms faced by multivari-
ate regressions (Kelava et al., 2011). While the
core arguments of this paper are not necessarily
conned to the Chinese context, China is partic-
ularly suitable for testing them because Chinese
INVs are expanding in international markets at a
surprisingly fast pace and their managers seem to
be apt at coordinating and orchestrating resources
(Lu et al., 2010).
This paper makes several contributions to the
relevant literature. First, this paper contributes to
the INV approach (Oviatt and McDougall, 1994)
by explaining why the speeds of international-
ization into EEs and DEs, which differ from the
extant dimensions of internationalization speed
(Deng, Jean and Sinkovics, 2018; Hilmersson and
Johanson, 2016; Kim et al., 2020; Oviatt and
McDougall, 2005; Sadeghi, Rose and Chetty,
2018), have different effects on international per-
formance among INVs. Our paper proposes two
new dimensions of internationalization speed
and provides a nuanced understanding of the
© 2022 British Academy of Management.
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