FDI Ownership Strategy: A Japanese-US MNE Comparison

Jung, Jae C.; Beamish, Paul W.; Goerzen, Anthony

doi:10.1007/s11575-008-0034-8

Cited by 27 publications

(19 citation statements)

References 64 publications

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“…We observe divergent degrees of control, ranging from minority, via 50‐50 to majority ownership configurations, each representing divergent entry scenarios and possibilities at the time of market entry. This corresponds with earlier findings that highlight the propensity of Japanese MNEs to opt for JV configurations when entering emerging markets (Delios & Beamish, ; Jung, Beamish, & Goerzen, ). Apart from the institutional possibilities, ownership involves balancing control and commitment.…”

Section: Discussionsupporting

confidence: 91%

Subsidiary Capacity Building in Emerging Markets: How Japanese MNEs Sequence Market Entry and Development Strategies in India

Horn¹

2015

Thunderbird International Business Review

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This paper asks the pragmatic question of how and to what extent fi rms build subsidiary competitiveness over time. By merging international business and international marketing theory, we integrate the unconnected discourses on market entry, development, product sequencing, and diffusion. The context of our research questions is marketing and entry strategies of four Japanese fi rms in India. All have had to learn the sequencing of both entry and product diversifi cation. While strategies vary between the fi rms, the cases exhibit that entry and product diversifi cation decisions are interlinked. Market entry confi gurations are central for developing market-led solutions in large emerging markets. This study offers insights into how Japanese MNEs build subsidiary competitiveness when faced with the early stages of the Indian consumer market take-off. Second, through the integration of international business and international marketing theory, we fi nd that new product performance and international diversifi cation interact in specifi c ways, and this contributes to future theoretical developments.

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Section: Discussionsupporting

confidence: 91%

Subsidiary Capacity Building in Emerging Markets: How Japanese MNEs Sequence Market Entry and Development Strategies in India

Horn¹

2015

Thunderbird International Business Review

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“…Although the studies identified have not recognized explicitly the intensity dimension developed above, some researchers have operationalized international experience in a manner consistent with our conceptualization of the intensity dimension. Some researchers have operationalized international experience as the number of subsidiaries established in the host country (Jung et al . 2008), region (Barkema and Drogendijk 2007) or internationally (Fey et al .…”

Section: International Experience As a Multidimensional Constructmentioning

confidence: 99%

International Experience in International Business Research: A Conceptualization and Exploration of Key Themes

Clarke

Tamaschke

Liesch

2012

Int J Management Reviews

117

139

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International experience, the experience that firms accrue from operating internationally, is a key concept in explaining firm internationalization. This paper reviews the conceptualization of international experience in the international business literature. It highlights how prior research has identified three dimensions of the international experience construct (length, scope and diversity), thereby demonstrating that international experience should be treated as a multidimensional construct. In addition, intensity is presented as a fourth and novel dimension of international experience. The importance of this multidimensional conceptualization is highlighted in an explanation of why the international diversification and international experience constructs are not synonymous. In light of the importance of international experience in explaining firm internationalization, the authors explore how the source of the firm's international experience will determine the limits to its application in foreign markets. In particular, the authors distinguish between location‐bound international experience and non‐location‐bound international experience as sources of firm‐specific advantages (FSAs). The FSAs that the firm develops from its experience with equity and non‐equity entry modes are presented as examples of specific FSAs developed within the firm's bundle of FSAs concerning internationalization. The paper concludes with some implications of the conceptualization of international experience for several issues of international business research as well as providing managerial implications.

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“…Some past studies analyzed the choice between greenfield investment and acquisition entry strategy by the investing foreign MNEs (e.g., Arslan & Larimo, 2011;Brouthers & Brouthers, 2000;Datta, Herrmann, & Rasheed, 2002;Demirbag et al, 2008Demirbag et al, , 2009Hennart & Park, 1993;Larimo, 2003;Shimizu, Hitt, Vaidyanath, & Pisano, 2004;Slangen & Hennart, 2008). Other IB studies addressed the ownership mode strategy of MNEs by studying the choice between wholly owned subsidiary or joint venture formation (e.g., Anderson & Gatignon, 1986;Arslan & Larimo, 2010;Brouthers & Hennart, 2007;Jung, Beamish, & Goerzen, 2008;Luo, 2001). However, the literature review reveals that very few IB and market entry studies (e.g., Jakobsen & Meyer, 2008) have analyzed acquisition entry strategy of MNEs specifically by differentiating between full acquisitions versus partial acquisitions, in case the MNE decides to acquire a local firm at time of market entry in a new target country.…”

Section: Introductionmentioning

confidence: 99%

Acquisition Entry Strategy of Nordic Multinational Enterprises in China: An Analysis of Key Determinants

Arslan¹,

Wang²

2014

Journal of Global Marketing

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This article addresses the key determinants of acquisition entry strategy (i.e., the choice between full versus partial acquisition) of Nordic multinational enterprises (MNEs) in China. Although general establishment and entry mode strategies have been a highly researched area in international business studies, acquisitions as a specific entry strategy and its different aspects have been scarcely researched. Therefore, the current study aims to fill the gap in literature by analyzing determinants of acquisition entry strategy based on three important theoretical bases: transaction cost economics, resource-based view, and institutional theory. Our study is one of the first to analyze acquisition entry strategy of MNEs from all four Nordic economies (Denmark, Finland, Norway, and Sweden) in China during 1987 through 2012, and this unique empirical context adds further value to the study findings. The empirical results show that high target country experience, high cultural distance, high level of product diversification, and subsidiary location in institutionally developed and open cities of China were positively associated with choice of full acquisitions by Nordic MNEs. On the other hand, high industry research and development intensity and timing of acquisition led to the choice of partial acquisitions by the investing Nordic MNEs.

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FDI Ownership Strategy: A Japanese-US MNE Comparison

Cited by 27 publications

References 64 publications

Subsidiary Capacity Building in Emerging Markets: How Japanese MNEs Sequence Market Entry and Development Strategies in India

Subsidiary Capacity Building in Emerging Markets: How Japanese MNEs Sequence Market Entry and Development Strategies in India

International Experience in International Business Research: A Conceptualization and Exploration of Key Themes

Acquisition Entry Strategy of Nordic Multinational Enterprises in China: An Analysis of Key Determinants

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