Industry risk taking and risk-taking strategy of born-global firms: An empirical study based on the industrial variety perspective

Jing Huang, Linyu Liu, Ren Lu*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

2 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to study the relationship between industry risk taking and risk-taking strategy of born-global firms (BGs), and how industry-related variety moderates that relationship.

Design/methodology/approach: The authors apply fixed effect model to analyze 26,499 observations on 10,508 BGs in 276 Chinese cities.

Findings: The authors find that industry risk taking positively influences risk-taking strategy of BGs, and industry-related variety positively moderates such relationship.

Originality/value: The findings reveal how BGs formulate their risk-taking strategy given the dilemma of risk nature and hurdles in firm establishment and rapid internationalization. This paper extends understanding on BGs’ strategy making, supplements the theoretical framework on BGs with an integrated viewpoint containing “regional–industry–firm” levels and contributes to the industry variety argument.

Original languageEnglish
Pages (from-to)1-21
JournalAsia-Pacific Journal of Business Administration
Volume12
Issue number1
Early online date25 Nov 2019
DOIs
Publication statusPublished - Nov 2019
MoE publication typeA1 Journal article-refereed

Keywords

  • Born-global firms
  • Industry risk taking

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