Market Entry Mode Selection: The Experience of Small Firms in Hong Kong Investing in China

Shi, Yi Zheng; Ho, Po Yuk; Siu, Wai Sum

doi:10.1080/713999128

Cited by 40 publications

(21 citation statements)

References 38 publications

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“…However, it is important to note that past IB studies have reported mixed findings with regard to the effect of international experience on entry strategy of MNEs. Several studies such as Padmanabhan and Cho (1999), Shi, Ho, and Siu (2001), Claver and Quer (2005), and Arslan and Larimo (2010) have indicated a nonsignificant relationship between international experience and choice of ownership. However, in some China-specific studies, international experience has been found to be positively associated with the probability of Taiwanese firms to choose full ownership (e.g., Chiao et al, 2010).…”

Section: International Experiencementioning

confidence: 95%

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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Section: International Experiencementioning

confidence: 95%

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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“…It was found that market-seeking motives (if related to market expansion rather than to the defence of markets) are positively associated with high-control entry modes (Tsai and Cheng, 2002;Gil et al, 2006); this result, however, is not very robust (Morschett et al, 2010). The same applies for cost-reducing motives; for example, Shi et al (2001) did not find a significant relationship between this type of motive and entry mode choice. Moreover, the results of studies where cost-reducing objectives are one element of an aggregated variable reflecting resource-seeking motives are ambiguous; some authors found a positive association with high-control entry modes (e.g.…”

Section: Motivesmentioning

confidence: 43%

Determinants of Equity-Based and Co-Operative Foreign R&D and Impact on the Parent Firm’s Performance

Berger

Hollenstein

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation. Terms of use: Documents in EconStor may JEL AbstractThe paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation.Keywords: Internationalisation of R&D; Governance of foreign R&D; International R&D cooperation; Foreign R&D and performance; OLI paradigm and R&D IntroductionOver the last twenty years internationalisation of R&D strongly increased and its pattern changed quite considerably (OECD, 2008). Several studies highlighted that R&D investments at foreign locations are motivated not only by traditional market and cost considerations but, more and more, by the intention to gain access to specific knowledge not available at home (see, among many others, Cantwe...

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“…The results are ambiguous in the case of cost-reducing motives (Shan 1991;Shi et al 2001;Gil et al 2006). As our model deals with R&D activities, we include three motive variables (dummies: high/low relevance): In addition to market-and cost-oriented motives (RDMARK, RDCOST), we account for knowledge-seeking foreign R&D (RDKNOW).…”

Section: Motives Of Foreign Randdmentioning

confidence: 74%

Choice of Foreign R&D Entry Mode and Its Relation to Firm Performance: A Firm-level Analysis for Switzerland and Austria

Hollenstein

Berger²

2015

Economics

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The objective of this study is to identify the determinants of a firm's foreign entry mode choice and the relationship between mode selection and firm performance for the specific case of R&D-a topic not yet investigated in entry mode research. Separate estimates of a Heckman selection model for Austria and Switzerland based on comparable firm-level data and variable specification show for both countries that the OLI model is well-suited to explain not only the propensity to invest in R&D abroad but also the related choice between an equity-based and a non-equity governance mode. Moreover, the research reveals that foreign R&D activity is positively related to firm performance and that this relationship is stronger in the case of an equity-based mode of governance, however only in the Swiss case. The differences between the two countries primarily reflect the much higher degree of internationalisation of the Swiss economy.

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Market Entry Mode Selection: The Experience of Small Firms in Hong Kong Investing in China

Cited by 40 publications

References 38 publications

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

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

Determinants of Equity-Based and Co-Operative Foreign R&D and Impact on the Parent Firm’s Performance

Choice of Foreign R&D Entry Mode and Its Relation to Firm Performance: A Firm-level Analysis for Switzerland and Austria

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