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

Author

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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)

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.

Suggested Citation

  • Hien Thi Ngoc Huynh & Phuong V. Nguyen & Khoa T. Tran, 2018. "Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?," Administrative Sciences, MDPI, vol. 8(4), pages 1-15, October.
    • Handle: RePEc:gam:jadmsc:v:8:y:2018:i:4:p:64-:d:178184
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    References listed on IDEAS

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    2. Joshua Akinlolu Olayinka & Sirinuch Loykulnanta, 2019. "How Domestic Firms Benefit from the Presence of Multinational Enterprises: Evidence from Indonesia and Philippines," Economies, MDPI, vol. 7(3), pages 1-14, September.

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