Indian Journal of Marketing

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Measuring the Degree of Internationalization (DOI) of Indian Manufacturing Companies


Affiliations
1 PhD Scholar, SVKM’s NMIMS University, V. L. Mehta Road, Vile Parle (West), Mumbai – 400 056, India
2 Distinguished Professor & Former Vice-Chancellor, SVKM’s NMIMS University, V. L. Mehta Road, Vile Parle (West), Mumbai – 400 056, India
3 Associate Dean, SVKM’s NMIMS University, V. L. Mehta Road, Vile Parle (West), Mumbai – 400 056, India
4 Associate Professor, Tata Institute of Social Sciences, Mumbai – 400 088, India
     

   Subscribe/Renew Journal


Many Indian companies from manufacturing sectors such as industrial, consumer discretionary, and materials have forayed into international markets through exports, overseas ventures, mergers and acquisitions (M&As), joint ventures, etc. Still, there remain unanswered findings to be gained from new research to measure the degree of internationalization (DOI) of international business operations by applying an index, for the first time, to Indian manufacturing companies. Moreover, existing studies, predominantly emanating from developed economies, have explored DOI in the context of developed economies. The extant approaches are limited because explaining the phenomenon of measuring the DOI of firms from emerging economies using frameworks designed for companies in developed countries may lead to incorrect results, as they are characterized by institutional voids like poor governance, greater governmental control, and nascent institutions. This original empirical investigation researched vital phenomena pertaining to Indian manufacturing companies by addressing the gaps outlined above. Researchers can cite germane measures of DOI via the proposed index to support academics and practitioners to determine whether a specific Indian manufacturing company has recently ventured into or plans to launch into the international markets by employing a more thorough composite measure of DOI.

Keywords

Degree of Internationalization, Indian Manufacturing Firms, Multinational, Foreign Direct Investment, Emerging Economies, Strategic Management.

Paper Submission Date : April 29, 2021 ; Paper Sent Back for Revision : May 15, 2021 ; Paper Acceptance Date : May 20, 2021 ; Paper Published Online : October 15, 2021.

User
Subscription Login to verify subscription
Notifications
Font Size

  • Altaf, N., & Shah, F. A. (2015). Internationalization and firm performance of Indian firms: Does product diversity matter? Pacific Science Review B: Humanities and Social Sciences, 1(2), 76–84. https://doi.org/10.1016/j.psrb.2016.05.002

  • Baskaran, S. A., & Chaarlas, L. J. (2012). A study on the outward FDI from India. Zenith International Journal of Business Economics & Management Research, 2(6), 49–60.

  • Bryman, A., & Cramer, D. (2002). Quantitative data analysis with SPSS release 10 for Windows: A guide for social scientists. Routledge.

  • Chaudhry, D., Tomar, P., & Joshi, P. (2018). Deconstructing Indian overseas foreign direct investments: Historical and contemporary trends. OXFAM Discussion Papers, March 2018. http://icrier.org/pdf/Deconstructing_Indian_Overseas_FDI.pdf

  • Dörrenbächer, C. (2000). Measuring corporate internationalisation. Intereconomics, 35(3), 119–126. https://doi.org/10.1007/BF02927197

  • Field, A. P. (2009). Discovering statistics using SPSS: (and sex, drugs and rock ‘n’ roll) (3rd ed.). Sage.

  • Gammeltoft, P., Pradhan, J. P., & Goldstein, A. (2010). Emerging multinationals: Home and host country determinants and outcomes. International Journal of Emerging Markets, 5(3/4), 254–265. https://doi.org/10.1108/17468801011058370

  • Gaur, A. S., & Kumar, V. (2009). International diversification, business group affiliation and firm performance: Empirical evidence from India. British Journal of Management, 20(2), 172–186. https://doi.org/10.1111/j.1467-8551.2007.00558.x

  • Ghimire, S. K. (2018). Measuring the degree of internationalization of Chinese Companies (Master’s thesis). The University of Agder. https://uia.brage.unit.no/uia-xmlui/bitstream/handle/11250/2561967/Ghimire,%20Santosh%20Kumar.pdf?sequence=1

  • Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis (5th ed. ). Prentice-Hall.

  • Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6th ed.). Pearson University Press.

  • Jankowska, J. (2011). Measures of company internationalization. In A. Ujwary-Gil & A. Nalepka (eds.), Business and non-profit organizations facing increased competition and growing customers’ demands. WSB - NLU, 20, 419–429.

  • Johanson, J., & Vahlne, J. - E. (1977). The internationalization process of the firm — A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23–32. https://doi.org/10.1057/palgrave.jibs.8490676

  • Joseph, R. K. (2019). Outward FDI from India: Review of policy and emerging trends (ISID Working Paper 124). Institute for Studies in Industrial Development. https://isid.org.in/wp-content/uploads/2020/04/WP214.pdf

  • Kaiser, H. F. (1970). A second-generation little jiffy. Psychometrika, 35, 401–415. https://doi.org/10.1007/BF02291817

  • Kaushal, L. A. (2018). Outward foreign direct investment: The Indian experience. Transnational Corporations Review, 10(1), 86–97. https://doi.org/10.1080/19186444.2018.1436658

  • Khanna, T., & Palepu, K. (2000). The future of business groups in emerging markets: Long-run evidence from Chile. Academy of Management Journal, 43(3), 268–285. https://doi.org/10.5465/1556395

  • Kirca, A. H., Hult, G. T., Deligonul, S., Perryy, M. Z., & Cavusgil, S. T. (2012). A multilevel examination of the drivers of firm multinationality: A meta-analysis. Journal of Management, 38(2), 502–530. https://doi.org/10.1177%2F0149206310369177

  • Lohani, J., & Bhatia, T. (2017). Factors affecting OFDI in Indian manufacturing firms: Technical analysis. International Journal of Research in Humanities and Social Studies, 4(4), 9–12. http://dx.doi.org/10.22259/ijrhss.0404002

  • Manthri, P., Bhokray, K., & Momaya, K. S. (2015). Export competitiveness of select firms from India: Glimpse of trends and implications. Indian Journal of Marketing, 45(5), 7–13. https://doi.org/10.17010/ijom/2015/v45/i5/79934

  • Mroczek–Dąbrowska, K. (2016). Degree of internationalization in mesoeconomic perspective. Studia Ekonomiczne, 286, 96–106.

  • Peterson, R. A. (1994). A meta-analysis of Cronbach’s coefficient alpha. Journal of Consumer Research, 21(2), 381–391. https://www.jstor.org/stable/2489828

  • Pradhan, J. P. (2008). The evolution of Indian outward foreign direct investment : Changing trends and patterns. International Journal of Technology and Globalisation, 4(1), 70–86.

  • Ramaswamy, R. (1996). Design and management of service processes: Keeping customers for life. Addison-Wesley.

  • Ramsey, J. R., Barakat, L. L., & Cretoiu, S. L. (2013). Internationalization and its possible impact on subjective and objective performance: Evidence from Brazilian TNCs. Transnational Corporations, 21(2), 21–46. https://doi.org/10.18356/8e2c91ba-en

  • Rana, S., Saikia, P. P., & Barai, M. K. (2018). Globalization and Indian manufacturing enterprises. FIIB Business Review, 7(3), 167–175. https://doi.org/10.1177/2319714518803440

  • Reserve Bank of India. (2011). Outward FDI from India for the period April 2007 to May 31, 2011. https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=24600

  • Shih-Yung, W., Li-Wei, L., & Su-Mei, G. (2019). The influence of internationalization degree on the performance of industry-specific companies: A case study of Taiwan (2001–2017). International Journal of Economics and Financial Issues, 9(4), 212–227.

  • Singla, C., & George, R. (2013). Internationalization and performance : A contextual analysis of Indian firms. Journal of Business Research, 66(12), 2500–2506. https://doi.org/10.1016/j.jbusres.2013.05.041

  • Subramaniam, D. (2016). Evolving global business trends and India’s challenges. Prabandhan: Indian Journal of Management, 9(3), 43–53. https://doi.org/10.17010/pijom/2016/v9i3/89185

  • Sullivan, D. (1994). Measuring the degree of internationalization of a firm. Journal of International Business Studies, 25, 325–342. https://doi.org/10.1057/palgrave.jibs.8490203

  • Sullivan, D. (1996). Measuring the degree of internationalization of a firm: A reply. Journal of International Business Studies, 27(1), 179–192. https://www.jstor.org/stable/155378

  • Szymura - Tyc, M. (2013). Measuring the degree of firms’ internationalization at their early stages of international commitment. Journal of Economics & Management, 13(3), 101–118.

  • Thite, M. (2016). Internationalisation of India Inc.: Tracing the global footprints of Indian multinationals. In M. Thite, A. Wilkinson, & P. Budhwar (eds.), Emerging Indian multinationals: Strategic players in a multipolar world. Oxford University Press.

  • Thomas, R., & Narayanan, K. (2017). Determinants of outward foreign direct investment: A study of Indian manufacturing firms. Transnational Corporations, 24(1), 9–26. https://doi.org/10.18356/43478432-en

  • UNCTAD. (2017). World investment report (2017) - Investment and the digital economy. https://unctad.org/system/files/official-document/wir2017_en.pdf

  • Verbeke, W., Pérez-Cueto, F. J., de Barcellos, M. D., Krystallis, A., & Grunert, K. G. (2010). European citizen and consumer attitudes and preferences regarding beef and pork. Meat Science, 84(2), 284–292. https://doi.org/10.1016/j.meatsci.2009.05.001


Abstract Views: 265

PDF Views: 3




  • Measuring the Degree of Internationalization (DOI) of Indian Manufacturing Companies

Abstract Views: 265  |  PDF Views: 3

Authors

Ramakrishnan Ramamurthi
PhD Scholar, SVKM’s NMIMS University, V. L. Mehta Road, Vile Parle (West), Mumbai – 400 056, India
Rajan Saxena
Distinguished Professor & Former Vice-Chancellor, SVKM’s NMIMS University, V. L. Mehta Road, Vile Parle (West), Mumbai – 400 056, India
Bala Krishnamoorthy
Associate Dean, SVKM’s NMIMS University, V. L. Mehta Road, Vile Parle (West), Mumbai – 400 056, India
Gordhan Saini
Associate Professor, Tata Institute of Social Sciences, Mumbai – 400 088, India

Abstract


Many Indian companies from manufacturing sectors such as industrial, consumer discretionary, and materials have forayed into international markets through exports, overseas ventures, mergers and acquisitions (M&As), joint ventures, etc. Still, there remain unanswered findings to be gained from new research to measure the degree of internationalization (DOI) of international business operations by applying an index, for the first time, to Indian manufacturing companies. Moreover, existing studies, predominantly emanating from developed economies, have explored DOI in the context of developed economies. The extant approaches are limited because explaining the phenomenon of measuring the DOI of firms from emerging economies using frameworks designed for companies in developed countries may lead to incorrect results, as they are characterized by institutional voids like poor governance, greater governmental control, and nascent institutions. This original empirical investigation researched vital phenomena pertaining to Indian manufacturing companies by addressing the gaps outlined above. Researchers can cite germane measures of DOI via the proposed index to support academics and practitioners to determine whether a specific Indian manufacturing company has recently ventured into or plans to launch into the international markets by employing a more thorough composite measure of DOI.

Keywords


Degree of Internationalization, Indian Manufacturing Firms, Multinational, Foreign Direct Investment, Emerging Economies, Strategic Management.

Paper Submission Date : April 29, 2021 ; Paper Sent Back for Revision : May 15, 2021 ; Paper Acceptance Date : May 20, 2021 ; Paper Published Online : October 15, 2021.


References





DOI: https://doi.org/10.17010/ijom%2F2021%2Fv51%2Fi10%2F166438