How does home region focus boost international performance for INVs in the international post-entry phase? The mediating role of international opportunity-pursuing orientation

Purpose This study aims to improve our understanding of international opportunity pursuing orientation (IOO) through which home region focus affects international performance. Design/methodology/approach The authors collected a sample of 360 International New Ventures (INVs) in the international post-entry phase from a two-wave survey in China. They tested the mediating effects of IOOs using structural equation modeling. Findings Both existing and envisaged IOOs are positively associated with international performance. Home region focus is positively related to existing IOO but negatively related to envisaged IOO. Existing and envisaged IOOs play a significant mediating role between home region focus and international performance. Research limitations/implications This study advances the regionalization hypothesis literature and international entrepreneurship perspective by introducing two new mediators, existing and envisaged IOOs, to link home region focus to international performance. Practical implications Managers should foster existing (envisaged) IOO to transform high (low) home region focus into superior international performance. Policymakers should help firms develop IOOs by organizing managers to visit abroad and formulating the function of embassies and consulates to collect foreign information. Originality/value While home region focus is essential for performance, there is a dearth of research explaining the underlying mechanisms through which home region focus affects performance. IOO is a novel antecedent of international performance among INVs at the international post-entry stage.