Factors enhancing the choice of higher resource commitment entry modes in international new ventures

Ripollés, María Soledad Arnau; Blesa, Andreu; Monferrer, Diego

doi:10.1016/j.ibusrev.2011.07.007

Cited by 94 publications

(68 citation statements)

References 200 publications

(225 reference statements)

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“…Our findings have led us to reject the influence of after-sales service and/or technological support on EEM. These findings are in keeping with Burgel and Murray (2000), but run contrary to the results reported by Aspelund, Madsen and Moen (2007) and Ripollés, Blesa and Monferrer (2012) Our findings are in line with other authors, like Hagen and Zucchella (2014), and suggest that cohesive networks play a more important role than large networks in entry mode choice (Coviello and Munro 1997;Berg et al 2008). But they extend past research by showing that the point is not to belong to a certain type of network but the firm's ability to manage interactions.…”

Section: Discussioncontrasting

confidence: 65%

“…IE literature also suggests that INVs use a wide variety of foreign entry modes (Gabrielsson et al 2008) ranging from non-equity entry modes (NEEMs) (Oviatt and McDougall 1994;Jansson and Sandberg 2008;Gabrielsson et al 2008) to equity entry modes (EEMs) (Burgel and Murray 2000;Aspelund et al 2007;Ripollés et al 2012). However, IE research 3 choice in the INV context.…”

Section: Introductionmentioning

confidence: 99%

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Entry mode choices in the international new ventures context. A study from different theoretical perspectives

Ripollés

Blesa

2016

Int Entrep Manag J

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Few studies have investigated the factors that enhance entry mode choice in the context of international new ventures (INVs). In this paper, we hypothesize that the characteristics of INVs' products or services can explain their preference for equity entry modes. We also hypothesize that the inter-firm networks in which INVs are embedded play a deciding role in their choice of non-equity entry modes. When INVs are in inter-firm networks in which activities are developed to manage them, non-equity entry modes are preferred. We have adopted an effectuation approach to study the influence of different inter-firm network management activities on entry mode choice. In short, we have studied the effect of developing inter-firm network knowledge exchange, coordination, adaptation, conflict resolution and resource sharing management activities. In this paper we attempt to contribute to international entrepreneurship studies by reconciling the most widely accepted approaches to entry mode choice (Transactional Cost Economics, Organizational Capabilitiesbased and Network perspective) and international new ventures. Our findings show that the technological complexity of INVs' products/services explain their preference for equity entry modes. Additionally, the development of network management activities among the networked firms determines the INVs' preference for non-equity entry modes. Our results draw a decision model that differs from the ones derived from previous perspectives, which highlight the role of different characteristics of international new ventures.

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Section: Discussioncontrasting

confidence: 65%

Section: Introductionmentioning

confidence: 99%

Entry mode choices in the international new ventures context. A study from different theoretical perspectives

Ripollés

Blesa

2016

Int Entrep Manag J

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“…During this process managers identify shared values and goals of their organizations to which they are psychologically attached (Gundlach et al, 1995;Ripolles et al, 2012). According to this view, committed partners desire to continue their relationship because they like and enjoy the relationship (Jaros et al, 1993;Vandenberghe and Tremblay, 2008;Cater and Cater, 2010).…”

Section: Relationship Commitmentmentioning

confidence: 99%

The formation of trust and commitment in business relationships in the Middle East: Understanding Et-Moone relationships

Abosag

Lee

2013

International Business Review

115

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Abstract:In recent years, different forms of relationships that are culturally bond have emerged such as; "Guanxi' in China (Yau, Lee, Chow, Sing, and Tse, 2000; Lou, 2007;Liu, Li, Tao and Wang, 2008), "Blat' in Russia (Michailova and Worm, 2003) and "Boon Koon' in Thailand (Pimpa, 2008). While these special forms of relationships are culturally bond, studies have also suggested that the development of a business relationship is directly linked to the development of trust and commitment (Wilson, 1995). Considering that these forms are culturally bond, studies from the Middle East on the formation of trust and commitment within relationship development are largely absent. We argue that understanding the dynamic formation of trust and commitment will help to better understand Et-Moone business relationships within the specific cultural context of the Middle East. Thus, this study combines the insights from the theory of life-cycle (Ford, 1980;Dwyer et al., 1987) and the theory of trust and commitment by Morgan and Hunt (1994) to understand business relationships in the Middle East. Based on qualitative research using a longitudinal approach and 33 semi-structured in-depth interviews conducted in 2003, this study finds the relationship between trust and commitment to be far more dynamic and changeable as the relationship evolves. Also, it finds that trust and commitment are major factors in establishing Et-Moone relationships.

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“…Ripolles et al, 2010;Ripolles et al, 2007;Zhou, 2007). Almost all papers that inspect the influence of entrepreneurship on companies' involvement in international markets disclose a significant (Chandra et al, 2009;Ibeh, 2003;Kazem & van der Heijden, 2006;Ripolles et al, 2012;Ripolles et al, 2007) or at least a partially significant (Kabiri & Salehi, 2013;Kropp et al, 2008) relationship. These empirical conclusions are in accordance with the RBV theory, which discusses firm-level entrepreneurship as a featured resource that helps companies to 1 Examples include entrepreneurship (Dimitratos et al, 2004;Hult et al, 2003;Miller, 1983), strategic posture (Covin & Slevin, 1989;Covin et al, 1990), entrepreneurial style (Naman & Slevin, 1993), entrepreneurial orientation (Dai et al, 2014;Knight, 2000;Wales et al, 2013;Wiklund, 1999), corporate entrepreneurship (Kaya, 2006;Zahra & Covin, 1995;Zahra & Garvis, 2000), entrepreneurial strategy making (Dess et al, 1997;Li et al, 2005), entrepreneurial characteristics (Autio et al, 2000), strategic orientation (Francis & Collins-Dodd, 2000;Robertson & Chetty, 2000), and entrepreneurial posture (Balabanis & Katsikea, 2003;Caruana et al, 2002;Zhou, 2007).…”

Section: Crick and Jones (2000)mentioning

confidence: 99%

The Internationalization of SMEs: An Interactive Perspective of Firm-Level Entrepreneurship and Network Structure

Hosseini¹

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The positive relationship of firm-level entrepreneurship and performance has received much attention in recent years and has become an attractive title in the entrepreneurship literature. This popularity encourages researchers to study the role played by the phenomenon on other organizational outputs such as internationalization. Until now, the majority of international studies have put their attention on the conceptual explanation of the interaction, and the number of empirical studies on the subject is few. Furthermore, almost all the empirical studies have been performed in developed and emerging markets, and developing areas such as the Middle East are nearly ignored. In the real context of Iranian business, policymakers support entrepreneurship as a proven way to improve the internationalization of smaller companies. Following this assumption, several supportive plans have been designed and executed which aim to increase the entrepreneurial status of SMEs as a way to enhance their internationalization. A question worth answering here is: Does having a better entrepreneurial stature mean better internationalization for Iranian SMEs? To answer this question and to fill the gap in the literature on the subject, this research explains the relationship of firm-level entrepreneurship and the internationalization of Iranian SMEs. To resolve the current conceptualization problem of firm-level entrepreneurship and to respect a broad conceptualization of entrepreneurship, a profile measurement model was employed in which companies are classified into four different groups: non-entrepreneurial, forced entrepreneurial, latent entrepreneurial, and actual entrepreneurial. This profile model incorporates the two popular constructs of entrepreneurial orientation and corporate entrepreneurship to determine the entrepreneurial stature of a company. Surprisingly, while the literature predicted the highest level of internationalization for actual entrepreneurial companies, the forced entrepreneurial firms showed the best internationalization in reality. The only exception was when the environments became very hostile, in which the actual entrepreneurial SMEs suppressed the forced entrepreneurial, showing better internationalization. These unexpected conclusions led the researcher to consider the complementary role of business networks. A case study approach was applied. The results revealed the importance of actor type in the decision to enter a foreign market, structural holes in identifying international opportunities, and network closure in realizing the opportunities. In simpler words, the forced entrepreneurial company held a better position to receive the information about international markets because most actors who dealt with them where international companies. In addition, it enjoyed an external network rich of structural holes and a dense internal network, which respectively facilitated the exploration and exploitation of subsequent international opportunities. All in all, however, firm-level entrepreneurship seems a...

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Factors enhancing the choice of higher resource commitment entry modes in international new ventures

Cited by 94 publications

References 200 publications

Entry mode choices in the international new ventures context. A study from different theoretical perspectives

Entry mode choices in the international new ventures context. A study from different theoretical perspectives

The formation of trust and commitment in business relationships in the Middle East: Understanding Et-Moone relationships

The Internationalization of SMEs: An Interactive Perspective of Firm-Level Entrepreneurship and Network Structure

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