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| The Effect of Structural Organicity on Reverse Internationalization Performance: A Perspective of Dynamic Capabilities |
| WANG Tao，LU Yuxin，JIN Luoxin |
| 1. Wuhan University, Wuhan, China; 2. Shenzhen Institute of Information Technology, Shenzhen, Guangdong， China |
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Abstract There are increasingly more Emerging Market Enterprises (EMEs) which successfully expand to developed countries. This phenomenon is inconsistent with the traditional internationalization theory. What is the factor that contributes to the success of its reverse internationalization? We identify organizational structure as an important factor. From the perspective of dynamic capabilities, this study explores the effect of EMEs’ organizational structure on its reverse internationalization performance. Collecting data through a survey of 128 Chinese firms that invest in developed counties, we find that structural organicity (flatness, decentralization, and employee multifunctionality) has a positive impact on the EMEs’ internationalization performance through the mediation of dynamic capabilities. Furthermore, institutional distance strengthens the positive relationship.
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Received: 26 April 2017
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