Internationalization speed and firm risk in Chinese EMNEs: the moderating roles of market power and ownership concentration

Purpose This study examines how internationalization speed affects firm risk in emerging market multinational enterprises (EMNEs) and investigates the moderating roles of market power and ownership concentration. Design/methodology/approach Panel data on Chinese A-share listed EMNEs from 2013 to 2022 are analyzed using generalized least squares models, with robustness checks including Heckman two-stage and two-stage least squares estimations. Findings Faster internationalization reduces risk. This risk-reducing effect weakens as market power or ownership concentration rises, and can reverse when either is high. Research limitations/implications Findings are based on Chinese EMNEs and downside risk. Future research should examine other contexts and risk dimensions. Practical implications Managers should treat speed as a strategic lever conditioned by firms’ internal conditions, investing in knowledge integration and decision-making mechanisms before accelerating expansion. Originality/value This study introduces internationalization speed as a process-level determinant of firm risk, shifting attention from the size of firms' option portfolios to the pace at which they are built. Grounded in real options theory, we argue that speed expands growth and switching option portfolios that structurally bound risk exposure, while market power and ownership concentration constrain firms' capacity to exercise these options under rapid expansion.