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Internationalization and donations allocated to domestic market: Evidence from emerging market SMEs

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  • Zhou, Chao

Abstract

This study investigates the effect of internationalization on the donations allocated to domestic markets in small and medium-sized enterprises (SMEs) from China. By adopting the resource dependence theory, we suggest that more internationalized firms are less dependent on the resources provided by stakeholders in the domestic market for survival, and therefore, are likely to donate less to domestic markets. Based on a sample of Chinese SMEs from 2008 to 2021, we find that internationalization negatively affects donations allocated to the domestic market, supporting the logic of the resource dependence theory. Moreover, our analysis reveals that host country characteristics, such as cultural distance, political risk, and economic growth, significantly strengthen this negative effect. This suggests that the host country context significantly impacts the relationship between internationalization and donations allocated to the domestic market among SMEs from emerging markets.

Suggested Citation

  • Zhou, Chao, 2025. "Internationalization and donations allocated to domestic market: Evidence from emerging market SMEs," Research in International Business and Finance, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000431
    DOI: 10.1016/j.ribaf.2025.102787
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    More about this item

    Keywords

    Internationalization; Corporate donation; Corporate philanthropy; SMEs; Resource dependence theory; Host country characteristics;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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