Location-boundedness, investment irreversibility, and divestment of international joint ventures under host market demand uncertainty

Song, Sangcheol

doi:10.1016/j.lrp.2021.102073

Cited by 6 publications

(3 citation statements)

References 119 publications

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“…The results contradict existing knowledge on DMNEs foreign divestment but align with expectations for EMNEs, highlighting the importance of differentiating their characteristics and strategies from DMNEs (Cuervo-Cazurra, 2016; Paul and Benito, 2018). Despite a growing body of literature on EMNEs, few studies have examined their foreign divestment behavior, with most focusing on Asiatic countries, particularly Korea (Pattnaik and Lee, 2014; Song, 2014a, 2014b, 2014c; 2022; Song and Lee, 2017; Zeng et al , 2013) and more recently, India and China (Athreye et al , 2023). The Korean studies do not approach foreign divestment from an emerging market perspective.…”

Section: Discussionmentioning

confidence: 99%

“…Considering that internationalization and de-internationalization decisions may be influenced by different factors, EMNEs may diverge in their divestment choices from DMNEs and multilatinas, a subset of EMNEs, have a distinct trajectory from other EMNEs, this study contributes to the literature by specifically examining multilatinas’ subsidiary divestment. To our knowledge, this is the first study to explore this topic and one of the few investigating EMNEs’ subsidiary divestment decisions (exceptions include Athreye et al , 2023; da Fonseca et al , 2023; Pattnaik and Lee, 2014; Song, 2014a, 2014b, 2014c, 2022; Song and Lee, 2017; Zeng et al , 2013). Furthermore, our study’s findings challenge the conventional understanding of foreign divestment antecedents, aligning with the EMNE literature and providing new insights into multilatinas’ divestment behavior.…”

Section: Introductionmentioning

confidence: 99%

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Multilatinas’ foreign divestment and host country institutional uncertainty: is there a best entry strategy?

da Fonseca,

da Rocha,

Ferreira

2023

EBR

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Purpose This paper aims to investigate the divestment behavior of emerging market multinationals from Latin America – multilatinas – by examining how their foreign market entry decision impacts the likelihood of subsidiary divestment. Design/methodology/approach The hypotheses are tested using Cox’s proportional hazard rate model in a longitudinal database of Brazilian multinational companies established in 43 countries. Findings Results indicate that these subsidiaries can thrive in environments that bear similarities to their home country, being less likely to divest in institutionally weak countries. Contrary to developed country multinationals, these firms benefit from foreign entry decisions that entail handling partnerships abroad; thus, wholly-owned greenfield (WOGF) investments have a higher likelihood of being divested. Originality/value To the best of the authors’ knowledge, this paper is the first to analyze foreign divestment from multilatinas, accounting for how entry mode strategy and host country institutions may impact these firms’ de-internationalization.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Multilatinas’ foreign divestment and host country institutional uncertainty: is there a best entry strategy?

da Fonseca,

da Rocha,

Ferreira

2023

EBR

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“…Extant research findings posit that international market complexity propels SMEs to search and identify market knowledge (Makri et al ., 2017; Mihailova et al ., 2020). International market complexity also encourages firms to reconfigure their competencies to react appropriately by incorporating relevant developments and avoiding obsolescence (Raonic et al ., 2004; Song, 2021). Therefore, the increasing level of international market complexity acts as a barrier for SMEs and may require potential responses to survive in such situations.…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

International servitization of SMEs in emerging markets: antecedents and boundary conditions

Zahoor

Christofi

Nwoba

2023

IMR

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PurposeProduct-service innovation (i.e. servitization) is providing opportunities to small and medium-sized enterprises (SMEs) to offer services that are directly coupled to their products. Despite scholarly efforts on servitization in domestic markets, the determinants of international product-service innovation remain unclear. Therefore, this study draws insights from dynamic capability (DC) view and aims to examine the international human capital and international product-service innovation relationship. Specifically, the authors argue that the effect of international human capital on international product-service innovation is mediated by international inter-organizational marketing capability (IIMC) and moderated by international market complexity.Design/methodology/approachThe authors test the conceptual model using structural equation modeling on a sample of 211 SMEs operating in United Arab Emirates (UAE) – an emerging market economy.FindingsThe results show that IIMC mediates the relationship between international human capital and international product-service innovation. The authors further found that the indirect relationship between international human capital and international product-service innovation is strengthened when international market complexity increases in magnitude.Originality/valueThis study advances the knowledge on international servitization by examining international human capital and IIMC as the determinants and international market complexity as a moderator. Data collection in the UAE contributes to empirical research on international servitization from emerging markets.

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Portfolio ownership, production shifts, and downside risks: Evidence from Korea

Song

2023

Journal of Business Research

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Location-boundedness, investment irreversibility, and divestment of international joint ventures under host market demand uncertainty

Cited by 6 publications

References 119 publications

Multilatinas’ foreign divestment and host country institutional uncertainty: is there a best entry strategy?

Multilatinas’ foreign divestment and host country institutional uncertainty: is there a best entry strategy?

International servitization of SMEs in emerging markets: antecedents and boundary conditions

Portfolio ownership, production shifts, and downside risks: Evidence from Korea

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