Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?

Hien Thi Ngoc Huynh, Phuong V. Nguyen and Khoa T. Tran
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Hien Thi Ngoc Huynh: School of Business, International University-Vietnam National University, Ho Chi Minh City 700000, Vietnam
Phuong V. Nguyen: School of Business, International University-Vietnam National University, Ho Chi Minh City 700000, Vietnam
Khoa T. Tran: School of Business, International University-Vietnam National University, Ho Chi Minh City 700000, Vietnam

Administrative Sciences, 2018, vol. 8, issue 4, 1-15

Abstract: This paper aims to investigate the three-stage theory of international expansion in the long run from the perspective of firm behavior. Although this topic has been mostly explored using data from developed countries, this paper aims to fill the research gap in an emerging market by using an extensive unbalanced panel data of 12,704 unlisted Vietnam manufacturing enterprises from the General Statistics Office during 2007 to 2012. The findings illustrated a significant S-shaped relationship between internationalization and performance. Notably, the results depict significantly moderating effects of both high-discretion slacks and low-discretion slacks on the internationalization–performance relationship across three stages of global expansion as an enterprise enhances this relationship in the first and third stage although this worsens it in the middle stage. The empirical results suggest that firms should determine the optimum level of internationalization and slacks in addition to balancing their costs with their real gains.

Keywords: internationalization; organizational slack; firm performance (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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