INTERNATIONALIZATION OF EMERGING MARKET FIRMS: IMPACTS OF BUSINESS GROUP AFFILIATION AND OWNERSHIP CONCENTRATION IN TURKEY CONTEXT

Emerging market firms are known for their lack of ownership advantages for internationalization. For this reason, most of them should search for these advantages in foreign markets. On the other hand, emerging market firms have specific governance structures which can facilitate some ownership advantages to internationalize. This study proposes that emerging market firms could also have ownership advantages at a threshold level that enhance their internationalization level. Moreover, business group affiliation and ownership concentration would have moderating roles in this positive relation. Accordingly, World Bank Enterprise Surveys database is used for sample formation. Hypotheses of the study are tested with a sample of Turkish firms that cover 4159 firm-year observations between 2008-2019. According to statistical findings, a negative relationship between ownership advantages and internationalization level is found for emerging market firms. However, there is no significant moderating effects of business group affiliation and ownership concentration.