Abstract:

Internationalization is an important driving force for the ongoing expansion of “Specialized, Special New” firms. Based on case studies of Uniview, Jinzhou, and SinoHyTec, we discover that industry maturity level, differences in domestic and international demand, and firm-specific technological capabilities all influence initial path choices for internationalization, as explained by the combination of the contingency theory and Ansoff matrix. When the industry is mature, the disparities between domestic and international demand are modest, and the firm has a technological advantage, the firm prioritizes accessing international new markets with current goods, following the “market development” path. When the industry is mature, the differences in domestic and international demands are significant, and the firm is well endowed with technology but mismatched with international market demand, it needs to develop new products before going international, adopting the “product development” path. When the firm operates in an emerging industry with untapped domestic and international demands and needs to leverage global knowledge and resources to establish technological capabilities, a global R&D network becomes paramount, and the “technology cooperation” path should be adopted. As internationalization progresses, contingency factors may change, and internationalization paths will be dynamically modified.

Key words: “Specialized, Special New” firms, manufacturing firms, internationalization, Ansoff matrix, contingency theory