Internationalization Processes and Organizational Size: The Moderating Effects of Business Groups

Based on the information-processing perspective, this article examines the relationship between the pace and scope of firm internationalization and organizational size. Additionally, as contextual variables, for example, business groups may have a moderating influence on organizational size. The analysis involves a sample of 772 publicly listed firms in Taiwan over a period of nine years (2000-2008). The findings indicate that the pace and scope of internationalization positively influence organizational size. It is also observed that when a firm is affiliated with a business group based on friendship, the relationship between the pace and scope of firm internationalization and organizational size will be positively moderated, and when a firm is affiliated with a family business group, the relationship between the pace and scope of firm internationalization and organizational size will be negatively moderated. This research contributes to the literature linking corporate strategy in firm internationalization with organizational theory.