Determinants of Foreign Investment of U.S. Advertising Agencies

Terpstra, Vern; Yu, Chwo‐Ming Joseph

doi:10.1057/palgrave.jibs.8490373

Cited by 328 publications

(220 citation statements)

References 29 publications

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“…Other research finds that market entry decisions are positively related to country size and the levels of development, trade, and infrastructure (e.g., Davidson 1980;Loree and Guisinger 1995;Terpstra and Yu 1988). In this study, we present a broader consideration of cultural and economic factors by considering the impact of knowledge developed by foreign subsidiaries on subsequent foreign market entries.…”

Section: Background On Foreign Market Entry Researchmentioning

confidence: 97%

Whose Culture Matters? Near-Market Knowledge and Its Impact on Foreign Market Entry Timing

Mitra

Golder

2002

Journal of Marketing Research

195

165

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suggestions on previous drafts; Don Lehmann for early discussions on the project; Sergio Meza for computer programming assistance; and Wagner Kamakura, Russ Winer, and three anonymous reviewers for their comments and suggestions. Whose Culture Matters? Near-Market Knowledge and Its Impact on Foreign Market Entry Timing AbstractMarket entry decisions are some of a firm's most important strategic choices. Although some recent studies have begun to consider the impact of learning and experience on foreign market entry, no study has examined the impact of a firm's own operations in similar markets on subsequent entry decisions. In this study, we introduce the concept of near-market knowledge to reflect the knowledge firms generate by operating in similar markets, both culturally and economically. We compile extensive data on the complete foreign market entries of 19 multinational firms. We use a hazard model on 722 entry observations to evaluate the impact of our dynamic near-market knowledge measures and other economic and cultural variables on foreign market entry timing. In contrast with much previous research, we find that cultural distance from the domestic market is not a significant factor. However, we do find significant effects for our new measures of near-market cultural and economic knowledge. We find significant effects for several other economic variables as well. We discuss the implications of these findings for future research and management practice.

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Section: Background On Foreign Market Entry Researchmentioning

confidence: 97%

Whose Culture Matters? Near-Market Knowledge and Its Impact on Foreign Market Entry Timing

Mitra

Golder

2002

Journal of Marketing Research

195

165

View full text Add to dashboard Cite

show abstract

“…A further distance measure, geographic distance, is typically only included as a control variable, with its use as an independent variable in its own right largely limited to studies on foreign direct investment and international trade (e.g. Dow, 2000;Terpstra & Yu, 1988). Legal distance has, to the best of our knowledge, not been studied as a separate barrier in any prior research in IHRM or IB, although it is sometimes subsumed under the regulatory element of institutional distance.…”

Section: Literature Review and Hypotheses Language Differences In Commentioning

confidence: 99%

Hablas vielleicht un peu la mia language?A comprehensive overview of the role of language differences in headquarters–subsidiary communication

Harzing

Pudelko

2013

The International Journal of Human Resource Management

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The management of human resources in headquarters (HQ)-subsidiary relationships requires intensive communication, but effective communication often depends on having a shared language. Hence, language differences can be a serious threat to the successful management of human resources in multinational corporations (MNCs). In this large-scale quantitative study, encompassing data from more than 800 subsidiaries in thirteen countries, we investigated four related issues. First, in terms of the importance of language differences, we found that HQ-subsidiary relationships are clearly affected by language differences and that the latter form a distance category of their own, which should not be subsumed under the related, but separate concept of cultural differences. Second, regarding the consequences of language differences for communication outcomes, we found that a lack of a shared language is associated with misunderstanding, conflict and parallel information networks which could harm HQ-subsidiary interactions. Third, with regard to the impact of language differences on communication methods, we found that a lack of a shared language is associated with a significantly lower level of oral (face-to-face and phone) communication, but not written communication. Fourth, and finally, in terms of a potential solution to communication problems caused by language differences, we found that expatriates can facilitate both communication and knowledge transfer between HQ and subsidiaries.

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“…Studies have been conducted on the internationalization of a number of professional service industries: e.g., accounting, financial services, advertising and management consultancy (Daniels, Thrift, & Leyshon, 1989;Terpstra & Yu, 1998;Kipping, 2002;Freeman et al, 2007). In many PSF sectors, firms have begun building integrated 'global professional networks' (Brock, 2006: 164).…”

Section: The International Context Of Services and Professional Servimentioning

confidence: 99%

Delivering ‘effortless experience’ across borders: Managing internal consistency in professional service firms

Segal‐Horn

Dean

2009

Journal of World Business

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This article explore s how professional service firms manage across borders. When clients require consistent services delivered across multiple locations, especially across borders, then firms need to set up an organization that is itself sufficiently flexible to be able to support such consistent service delivery. Our discussion is illustrated by the globalization process of law firms. We argue that the globalization of large corporate law firms primarily takes place in terms of investments in the development of protocols, processes and practices that enhance internal consistency such that clients receive an 'effortless experience' of the service across multiple locations worldwide. Over the longer term the ability to deliver such effortless experience is dependent upon meaningful integration within and across the firm. Firms that achieve this are building a source of sustainable competitive advantage.

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Determinants of Foreign Investment of U.S. Advertising Agencies

Cited by 328 publications

References 29 publications

Whose Culture Matters? Near-Market Knowledge and Its Impact on Foreign Market Entry Timing

Whose Culture Matters? Near-Market Knowledge and Its Impact on Foreign Market Entry Timing

Hablas vielleicht un peu la mia language?A comprehensive overview of the role of language differences in headquarters–subsidiary communication

Delivering ‘effortless experience’ across borders: Managing internal consistency in professional service firms

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