'2R-Based View' on the Internationalization of Service MNEs from Emerging Economies: Evidence from China

Abstract

This study combines the resource-based view of the firms and region-based view of the strategy (i.e., a 2R-based view) to shed light on the crucial roles of firm-specific resources and region-specific heterogeneity within the context of China, a large emerging economy. The study explains the variations in internationalization levels among service multinational enterprises (MNEs). Based on a large sample analysis of Chinese service MNEs, our findings demonstrate that MNEs with good cost efficiency and few intangible resources exhibit great propensity for international expansion, thereby achieving high internationalization level. Chinese service MNEs located in a coastal region or a region with well-developed institutional environments achieve high internationalization level as well. These findings support a U-shaped relationship between the internationalization of service MNEs and their performance. Our research findings confirm our predictions from the 2R-based view, which provides valuable insight into the regional development and international strategy of MNEs from emerging economies.