A Meta-analysis on Subsidiary Exit

Coudounaris, Dafnis N.

doi:10.1007/978-3-319-45596-9_155

Cited by 9 publications

(17 citation statements)

References 57 publications

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“…Past research identifies several factors that influence MNC foreign subsidiary exits such as firm innovativeness, firm financial performance, macro and microeconomic factors in the target country, environmental factors in the target country, type of experience, organizational characteristics/factors, and the chosen investment strategy (Pot et al, 2018). Previous studies (Lee and Madhavan, 2010;Coudounaris, 2017) indicate that the factors above have different influences on the divestment of subsidiaries. However, few previous studies have measured the influence of these factors, and there is no single study that has tested the fit of similar models with the assistance of structural equation modeling.…”

Section: Introductionmentioning

confidence: 99%

“…Benito (2005) questions why Rugman and Brewer (2001) do not mention anything about divestment in their anthology on the state-of-the-art in IB research. Furthermore, different studies by Lee and Madhavan (2010) and Coudounaris (2017) (see Endnote) examine numerous empirical studies on divestments and firm performance in meta-analyses.…”

Section: Introductionmentioning

confidence: 99%

“…Furthermore, in the study by Coudounaris (2017), meta-analysis of both advertising intensity and product diversification are used as direct effects on subsidiary exit. However, this study used both constructs as moderators instead, because they are both used as moderators in firm performance (Nijs, Dekimpe, Steenkamp, and Hanssens, 2001;Hitt, Tihanyi, Miller and Connelly, 2006).…”

Section: Introductionmentioning

confidence: 99%

“…The recent economic crisis of 2008-2011, which resulted in many cases of subsidiary failure worldwide (Jung et al, 2018), triggered substantial interest among MNCs in the re-investigation of the divestment strategy and other strategies to be implemented or examined, that is, the moderating effects of product diversification and advertising intensity. Coudounaris (2017) reveals eleven significant relationships among six constructs, namely parent firm factors, environmental factors in the target country, experience, organizational characteristics, investment strategy, and subsidiary divestment.…”

Section: Introductionmentioning

confidence: 99%

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Three decades of subsidiary exits: Parent firm financial performance and moderators

Coudounaris

Orero-Blat

Rodríguez-García

2020

Journal of Business Research

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This study aimed to find important constructs and relationships among models of subsidiary divestment during the period from 1989 to 2018 using correlation matrices of 80 studies, the selection of which was based on six criteria. It revealed eight important constructs, namely firm innovativeness, environmental factors in the target country, type of experience, organizational characteristics, investment strategy, parent firm financial performance, subsidiary divestment, and the moderating effects of advertising intensity and product diversification. Furthermore, it shed light on seven relationships that should be considered in future attempts to measure or assess parent performance related to its antecedents and subsidiary divestment. Moreover, advertising intensity and product diversification were respectively weakening and strengthening moderators on firm financial performance, and advertising intensity was a weakening moderator between organizational characteristics and subsidiary divestment. The implementation of a product diversification policy did not assist in preventing subsidiary divestment. Conclusions, implications, limitations, and future research were discussed.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Three decades of subsidiary exits: Parent firm financial performance and moderators

Coudounaris

Orero-Blat

Rodríguez-García

2020

Journal of Business Research

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“…In our view, the last point is of crucial importance. Until now, both theoretical and empirical studies on foreign divestments (Berry, 2010, 2013; Coudounaris, 2017; Lee & Song, 2012; McDermott, 2010) paid little attention to the way the divested unit had been included into corporate business portfolios. Our study may be used as evidence of the presence of behavioral elements in the foreign divestment process, similar to the existence of behavioral elements in the FDI process (see Aharoni, 2010).…”

Section: Discussionmentioning

confidence: 99%

Rituals of opening ceremonies of overseas manufacturing facilities of multinational corporations in Russia

Gurkov

Kokorina

Saidov

et al. 2019

Thunderbird Intl Bus Rev

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We explore the meaning of rituals of public plant‐opening ceremonies, which are popular in many countries and mandatory in Russia for greenfield investment projects implemented by multinational corporations. The study is based on the analysis of videos from the public opening ceremonies supplemented with the analysis of financial data on the studied industrial projects. We argue that in a country with underdeveloped physical infrastructure and volatile business regulations, opening ceremonies for new industrial projects have three implications: (a) such events are festivities which are centered on an exchange of gratitude between foreign investors and the local authorities for their non‐opportunistic behavior; (b) such events serve as “the rite of passage” of a newly built facility into the local business and social infrastructure; and (c) assurances in speeches during opening ceremonies about the long‐term nature of industrial projects are taken seriously as obligations and serve as an additional barrier to exit from industrial assets.

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Archetypes of Driver Combinations Leading to Foreign Market Exit: An Investigation into European Grocery Retailing

2021

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Existing research into retailers’ foreign market exits has uncovered a number of drivers that lead multinational retailers to divest from certain countries. While scholars have investigated these drivers in isolation from one another, combinations of drivers that affect divestment decisions simultaneously remain under-researched despite scholars having indicated their importance and having called for a detailed, more holistic analysis. In this study, using a case study approach and qualitative content analysis of a wide variety of publicly available contemporary documents from different perspectives and experts, we investigate the drivers leading to all 32 country exits of the 50 largest grocery retailers in Europe in the 5-year period between 2014 and 2018. In line with previous research, the study shows the most frequent exit drivers are a low performance of the subsidiary, a low performance of the parent company, and a strategic refocus of the parent company. However, we demonstrate that for most exits, combinations of multiple interrelated drivers at the subsidiary level, the host-country level, and the parent level have a joint influence on retailers’ decisions to exit foreign markets. We also show that exits often include both failure-related drivers and strategy-related drivers. Furthermore, using the configurational approach, we identify exemplary combinations of market exit drivers that occur frequently and propose five archetypes of such combinations that suffice to explain all market exits in the dataset. For future research, we propose extending our typology through the application of a similar approach to different contexts and to use quantitative research based on the qualitative findings to generate more generalizable results.

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A Meta-analysis on Subsidiary Exit

Cited by 9 publications

References 57 publications

Three decades of subsidiary exits: Parent firm financial performance and moderators

Three decades of subsidiary exits: Parent firm financial performance and moderators

Rituals of opening ceremonies of overseas manufacturing facilities of multinational corporations in Russia

Archetypes of Driver Combinations Leading to Foreign Market Exit: An Investigation into European Grocery Retailing

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