Mirroring Back: How Middle-Sized Multinational Enterprises Innovate by Internationalization

The strategies of internationalization have been one of most relevant topics in managerial literature in the last decade. Although new perspectives are flourishing, and new approaches integrate different knowledge and competences of several disciplines theoretical frameworks build on large size multinationals show some limits to be applied in studying medium sized organization. The research question is how medium size multinational enterprises (MMNE) innovate leveraging the international exposure? In our first exploratory research we try to demonstrate that, “one size does not fit all” and the results sustain the internationalization theory based on replication versus adaptation. The first study provides a framework and some preliminary evidence to comprehend how and why the MMNEs internationalization strategies deviate from the strategies of the multinational and global companies (MNC). The second field study provides an explanation of major factors that influence the innovation of business models generated by internationalization in a dynamic and growing foreign market. We outline these consequences of international learning in a set of action that defines the “mirroring back” effects. The final research question is whether internationalization strategy may amplify the organizational capabilities extending the innovation by internationalization and if this effect happens in midsize firms. Our research is focused on MMNEs in China. Two reasons drive us to consider these markets: first, the relevance of Chinese economy in the global competitive arena; second, the speed of the institutional changes in a rapid and persistent economic growth (Pontiggia and Vescovi, 2013).