Propensity for Internationalization in Emerging Economies: Is The Key to Success in Strategic Orientations and Institutional Factors?

Abstract

Objective: This study aims to analyze the mediation of institutional factors in the relationship between strategic orientations and the propensity of companies, particularly technology-based companies (TBCs), to internationalize in emerging economies. Method: This quantitative, descriptive, cross-sectional survey was conducted with a population and sample of 137 Brazilian TBCs. The data were analyzed through correlational and multivariate analysis using the structural equation modeling technique. Results: The findings indicate that institutional factors positively influence the propensity for internationalization of the investigated TBCs. Additionally, these institutional factors mediate the relationship between entrepreneurial strategic orientations and international growth orientation. In other words, entrepreneurship can enhance the international expansion capacity of TBCs, and the institutional environment of the target market often influences the success of this expansion. Conclusion: The presence of mediation, even when there is a strong entrepreneurial orientation, suggests that TBCs do not operate in isolation. Rather, their success is deeply connected to the institutional contexts in which they operate. For an effective international growth strategy, TBCs must focus on their internal capacities and orientations and remain attentive and adaptable to the nuances and demands of the institutional environment.