Entrepreneurial Orientation, Relational Embeddedness, and Internationalization Performance of Service MNEs: The Moderating Role of Simultaneous Production and Consumption

Existing studies on the relationship between entrepreneurial orientation (EO) and internationalization performance have yielded inconsistent findings. To address this issue, this study focuses on the contingent roles of institutional context and industry-specific characteristics. We also explore how EO enables service multinational enterprises (MNEs) in emerging markets to build deeply embedded relationships that help them navigate institutional voids and improve internationalization performance. Using a sample of Chinese service MNEs, this study finds that EO is positively associated with both relational embeddedness and internationalization performance. Relational embeddedness serves as an institutional bridge through which emerging-market service MNEs with strong EO can obtain resources and legitimacy in host countries, thereby improving internationalization performance. Moreover, simultaneous production and consumption significantly moderates both the relationship between EO and relational embeddedness and the moderated mediation effect of EO on internationalization performance through relational embeddedness. These findings provide a theoretical basis for understanding how service MNEs in emerging markets use internal EO and secure external resources through relational embeddedness to improve internationalization performance. We also provide recommendations for stakeholders of service MNEs in emerging markets to calibrate their entrepreneurial strategies in accordance with their service characteristics.