Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective

Mohr, Alexander T.; Batsakis, Georgios; Stone, Zita

doi:10.1057/s41267-017-0138-0

Cited by 70 publications

(50 citation statements)

References 109 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For example, network externalities may extend more easily across some national borders than others. Regional economic integration and cultural or institutional similarities within regions (Ghemawat, 2017; Mohr, Batsakis, & Stone, 2018) may promote within‐region internationalization. For platforms with highly local markets (e.g., Uber), subnational regions such as cities and metropolitan areas may be more salient than countries.…”

Section: Discussionmentioning

confidence: 99%

Platforms without borders? The international strategies of digital platform firms

Stallkamp

Schotter

2019

Global Strategy Journal

225

159

View full text Add to dashboard Cite

Research Summary: Digitalization has enabled firms with so‐called platform business models to emerge in many sectors of the economy. By facilitating transactions between different groups of users (e.g., buyers and sellers), platform firms are disrupting industries around the world. However, little is known about the international strategies of platform firms, as research has mostly examined platforms in single‐country contexts. We address this gap by integrating insights from platform research in strategy and economics—specifically the notion of network externalities—with internalization theory. We extend the existing typology of network externalities by distinguishing between within‐country and cross‐country network externalities. We derive testable propositions regarding the foreign entry modes of platform firms, their international strategic posture (multidomestic vs. globally integrated), as well as foreign market selection criteria and market exit. Managerial Summary: Many companies in the digital economy operate platform business models, which create value by connecting different groups of users, such as buyers and sellers. We examine how network externalities—the notion that a platform becomes more valuable to each user as more users join—influence the international expansion of these firms. We show that it is important to consider the geographic scope of network externalities, that is, whether network externalities operate across national borders or whether platform firms have to create separate user networks in each country. The distinction between within‐country and cross‐country network externalities affects key internationalization decisions, such as how to enter foreign markets, whether to pursue multidomestic or global strategies, how to select foreign markets, and when to exit from a foreign market.

show abstract

Section: Discussionmentioning

confidence: 99%

Platforms without borders? The international strategies of digital platform firms

Stallkamp

Schotter

2019

Global Strategy Journal

225

159

View full text Add to dashboard Cite

show abstract

“…Our analysis of the selected 80 studies (see Table 1 below) reveals that parent firm performance is a common construct in 52 studies. Among these 52 studies, 30 examine parent performance/profitability (Kaul et al, 2018;Mohr et al, 2018;Tan and Sousa, 2017;Dai et al, 2017;Zschoche, 2016;Damaraju et al, 2015;Soule et al, 2014;Durand and Vergne, 2014;Elfenbein and Knott, 2014;Chung et al, 2013;Dai et al, 2013;Xia and Li, 2013;Cui and Kumar, 2012;Fisch and Zschoche, 2012;Kim et al, 2012;Brauer and Wiersema, 2012;Polidoro et al, 2011;Wu et al, 2011;Berry, 2010;Brauer and Schimmer, 2010;Anand et al, 2009;Lu and Hébert, 2005;Shimizu and Hitt, 2005;Delios and Beamish, 2001;Shaver et al, 1997;Markides, 1995;Baden-Fuller, 1989), and five (Xia and Li, 2013;Delios et al, 2008;Berry, 2004;and Haynes et al, 2000) relate to return on sales (ROS).…”

Section: Parent Firm Financial Performance and Subsidiary Performancementioning

confidence: 99%

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

Coudounaris

Orero-Blat

Rodríguez-García

2020

Journal of Business Research

View full text Add to dashboard Cite

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.

show abstract

“…However, also other antecedents have been identified. Internal factors that potentially influence deinternationalization include changes in leadership (Cairns, Quinn, Alexander, & Doherty, 2010), international experience (Choquette, 2018;Delios & Beamish, 2001), strategic fit (Sousa & Tan, 2015), and speed of internationalization (Mohr, Batsakis, & Stone, 2018). Examples of external factors are changes in exchange rates and tariffs (Fitzgerald & Haller, 2018) and a decline in demand in the host country (Benito, 1997).…”

Section: Internationalization As a Discontinuous Processmentioning

confidence: 99%

The Palgrave Handbook of Family Firm Internationalization

Leppäaho¹,

Jack²

2021

View full text Add to dashboard Cite

Prior research on internationalization of family firms relies on an, often implicit, assumption that internationalization is a continuous process, that is, they engage in an ongoing and increasing level of international activities. However, in reality internationalization is often a discontinuous process in which firms internationalize, de-internationalize, and potentially, reinternationalize. In the conceptual study presented in this chapter, we suggest that the behavioral theory of the firm and the four key concepts of quasi resolution of goal conflict, uncertainty avoidance, problemistic search, and learning, can provide a theoretical framework for understanding family firms' internationalization as a discontinuous process. While literature on family firms' internationalization builds on and borrows parts of the behavioral theory of the firm like considering the notions of multiple goals and uncertainty avoidance, other concepts of problemistic search and learning have received less attention. Following a review of literature on family firms' internationalization, we introduce new areas for empirical research and relevant research questions about family firms' internationalization as a discontinuous process based on key concepts of the behavioral theory of the firm.

show abstract

Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective

Cited by 70 publications

References 109 publications

Platforms without borders? The international strategies of digital platform firms

Platforms without borders? The international strategies of digital platform firms

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

The Palgrave Handbook of Family Firm Internationalization

Contact Info

Product

Resources

About