Sequential internationalization of small-and medium-sized enterprises from newly industrializing economies

The Korean experience in China

Hyungoh Lee, Keun Lee, Jooyoung Kwak

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

This article develops a new 'sequential internationalization' theoretical framework to explain internationalization by small-and medium-sized enterprises (SMEs) from a dynamic emerging economy. Looking at 18 cases of Korean SMEs in China, it analyzes the changing map of the division of labor between parent firms in Korea and subsidiaries in China. We find that internationalization has been sequential, reflecting the higher resource constraints facing SMEs in comparison with large firms. SMEs tend to proceed from a product-based to a value chain-based division of labor, and finally to a market-based division of labor between the parent firm and its local subsidiaries.

Original languageEnglish
Pages (from-to)61-84
Number of pages24
JournalAsian Business and Management
Volume12
Issue number1
DOIs
Publication statusPublished - 2013 Feb 1

Fingerprint

small and medium-sized enterprise
internationalization
division of labor
China
economy
firm
experience
parents
value chain
Korea
Internationalization
Small and medium-sized enterprises
market
resources
Division of labor
Subsidiaries

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Sociology and Political Science
  • Political Science and International Relations

Cite this

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