Persistence and Learning: Success Factors of Taiwanese Firms in International Markets

A relatively recent trend in international marketing is the rising number of firms from nontriad countries seeking growth and profits from foreign markets. Yet no study has examined the international performance of these firms. How successful have their efforts been? What factors drive their success? The authors examine these questions by building a theory-based conceptual framework that links firm international performance to its antecedents. They test the framework using a sample of 110 Taiwanese firms. The key findings are as follows: (1) The internationalization-performance relationship is characterized by a joint U + N shape, (2) learning capacity is positively associated with international performance, and (3) research and development intensity is not a key driver of performance. Though based on a sample of Taiwanese firms only, these results imply that nontriad firms embarking on internationalization must persist despite early setbacks, must develop their learning capacity, and should not develop extensive research and development capabilities while internationalizing. The authors conclude with a discussion of the reasons for these findings.