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Internationalization at Inception: Insights from the Indian Textile Industry's Born Globals

Author

Listed:
  • Srividhya, M

    (Centre for Economic and Social Studies (CESS), Hyderabad, India)

  • Vidya, C.T.

    (Centre for Economic and Social Studies (CESS), Hyderabad, India)

Abstract

This study investigates the nature and shape of the relationship between internationalization and firm performance in textile Born Globals (BGs) in India. Utilizing a three-stage model and the M-curve hypothesis, the research examines this relationship comprehensively. The findings confirm a two-stage, inverted U-shaped relationship between internationalization and firm performance in the short run and an extended four-stage M-curve hypothesis in the long run. Additionally, the study identifies several variables that positively impact the performance of textile BGs in India during internationalization. The impact of these variables varies between the short and long term. In the short run, firm size and slack are significant factors in determining firm performance. However, research and development intensity and

Suggested Citation

  • Srividhya, M & Vidya, C.T., 2024. "Internationalization at Inception: Insights from the Indian Textile Industry's Born Globals," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 39(3), pages 688-713.
    • Handle: RePEc:ris:integr:0917
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    More about this item

    Keywords

    internationalization; firm performance; India; Born-Globals; firm size;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F00 - International Economics - - General - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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