Affiliation:
1. Nanjing Audit University, China
2. Renmin University of China, China
Abstract
Drawing upon the attention-based view, we examine whether political connections facilitate or hinder the speed of new venture internationalisation. Given the limited managerial attention and information-processing capacities of decision-makers, international new ventures (INVs) need to make a trade-off between domestic business activities and rapid foreign expansion. We hypothesise that INVs with political connections, being embedded in political networks in their home market, tend to focus their attention on domestic business activities rather than rapid internationalisation. We also hypothesise that a high level of subnational trade openness mitigates the baseline negative relationship. Analyses based on the longitudinal data of INVs publicly listed in China support the hypotheses. Our study contributes to the literature by unveiling the dilemma of INVs which are developing board political connections at home and seeking rapid internationalisation abroad.
Funder
Foundation of Humanities and Social Sciences, Ministry of Education, China
‘Belt and Road’ National Audit Research Institute, Nanjing Audit University
National Natural Science Foundation of China
Subject
Business and International Management
Cited by
1 articles.
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