Intra- and Inter-organizational Imitative Behavior: Institutional Influences on Japanese Firms' Entry Mode Choice

Abstract

This paper compares the predictions of transaction cost and institutional theories in an empirical study of the entry mode choice for 1,194 Japanese foreign subsidiaries. The findings indicate the institutional model adds significant explanatorypower over and above the predictions of the transaction cost model. Using the concepts of frequency-based, trait-based and out-T he entry mode choice is an important decision in international strategy because of its relationships to the performance and survival of a firm's foreign subsidiaries (Stopford and Wells, 1972; Beamish and Makino, 1998). The major stream of research in the entry mode field has emphasized relationships between a firm's assets, and its need for control and ownership, as it modeled the entry mode choice from an economic perspective (Anderson and Gatignon, 1986). Theorists have emphasized that come-based imitation, I find support for institutional isomorphism, as later entrants tended to follow the entry mode patterns established by earlier entrants. Isomorphic behavior was also present within a firm, as firms exhibited consistency in entry mode choices across time. Further, a firm's investment experience moderated institutional influences on entry mode choice. the entry mode choice stemmed from two asset-based influences. High-control modes (for example, wholly-owned subsidiaries) are used when there is a need to control and safeguard a parent firm's contributed assets in its foreign subsidiaries (Gatignon and Anderson, 1988; Hennart and Park, 1993). Low-control modes (for example, joint ventures) are used when a foreign firm requires access to complementary assets for international expansion (Beamish and Banks,

Knowledge acquisition for the internationalization of the smaller firm: Content and sources

“…Firms can also acquire knowledge externally from specialist organizations such as export intermediaries (Peng & Ilinicth, 1998) or other commercial and government sources (Leonidou & Adams Florou, 1998). One form of vicarious learning is mimicking other firms for example, by looking to similar firms when making foreign entry mode decisions (Lu, 2002). Firms without international presence can reduce the uncertainty perceived by others in their foreign market entries by imitating firms that have some legitimacy in having achieved successful market entries (Forsgren, 2002).…”

Influence factors in change methods choice and their impact on change deficiencies: A case study of construction industry in transition economy

“…Frequency-based imitation, as the purest form of mimetic isomorphism, includes the tendency to imitate practices that have been adopted by a large number of organizations (Lu 2002). Compared to frequency-based imitation, trait-based imitation is a more selective mimetic process in which an organization imitates a subset of the most successful organizations.…”

Abordagem Conceitual às Estratégias de Internacionalização sob Pressões Institucionais Duais para Legitimidade e Conformidade

“…Ou seja, para sobreviver e prosperar, as empresas necessitam ganhar legitimidade, que conseguem por meio de comportamento isomórfico (D. Li et al, 2012;DiMaggio & Powell, 1983;Haunschild & Miner, 1997;J. Meyer & Rowan, 1977;Lu, 2002;Martin et al, 1998). Em essência, isso significa imitar os agentes locais, utilizando as práticas institucionalizadas (Haveman, 1993).…”

“…As externas incluem as estruturas reguladoras, as agências governamentais, a opinião pública, leis e sistema legal, tribunais, grupos de interesse, profissões, cultura, regulação e economia (Scott, 2003). Ou seja, cada nova subsidiária é pressionada para ganhar legitimidade no país receptor, adotando um conjunto de normas, regras, procedimentos e relacionamentos, valores e estrutura organizacional que sejam ajustados aos requisitos institucionais dos locais (Lu, 2002;Martin, Swaminathan, & Mitchell, 1998). As pressões internas, em contraponto, evidenciam que cada subsidiária no estrangeiro precisa assumir normas, valores, práticas e procedimentos, esquemas e modelos organizacionais, etc., que estejam em conformidade com as normas internas da EMN (Davis, Desai, & Francis, 2000;Kostova & Roth, 2002;M.…”