The strategy of specialization is the fundamental competitive strategy of niche leaders. However, whether the specialization strategy contributes to the internationalization of niche leaders in a complex and dynamic environment remains understudied. Using a sample of Chinese manufacturing listed niche leader enterprises over the period 2014-2020, this paper decomposes internationalization degree into two dimensions, namely, breadth and depth of internationalization, and examines the impact of specialization strategy on niche leader’s internationalization, as well as the moderating effects of home country level and organizational level factors. The empirical results show that specialization strategy promotes the internationalization of niche leaders, and such effect is stronger in niche leaders than in “non-niche leader” enterprises. Moreover, while firm size strengthens the positive effect of specialization strategy on niche leaders’ internationalization, the industry competition and firm’s market position in home country weaken such effect. The results suggest that although the specialization strategy can be used by niche leaders to expand the depth and breadth of their international operations, the influence of important contextual factors should be taken into consideration. Our findings extend the relevant research on the antecedents of the internationalization of niche leaders.
