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Chao Zhao

Doctor of Philosophy, (International Business)
Study Completed: 2019
Massey Business School


Thesis Title
Post-entry internationalization speed, managerial cognition, and firm performance: A dynamic capability perspective

Read article at Massey Research Online: MRO icon

Internationalisation is an important growth strategy for firms, especially for small- and medium-sized enterprises (SMEs). Given their limited resources, they face questions about whether to expand into foreign markets slowly and conservatively, or move boldly, experimenting with multiple entry modes, using early experience and contacts as a springboard for expansion into new distant markets. Using data collected from 343 SMEs operating in Australia and New Zealand, Miss Zhao found that rapid internationalisation could improve firm performance, but only to a certain point. Dynamic capabilities in general and absorptive capacity in particular play a highly important role in determining the performance implications of rapid expansion in the post-entry stage. Internationalisation speed, interacting with prior international experience, influences the trajectory of absorptive capacity development. In addition, managerial cognition in terms of rational and heuristic cognitive styles impose distinct influences on absorptive capacity under the influence of market dynamism.

Dr Yuanfei Kang
Dr Jeffrey Kennedy
Professor Martina Battisti