Opportunity beliefs in internationalization: A microhistorical approach

Leppäaho, Tanja; Mainela, Tuija; Paavilainen-Mäntymäki, Eriikka

doi:10.1057/s41267-023-00599-x

Cited by 3 publications

(2 citation statements)

References 39 publications

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“…The findings suggest that the signals coming from formal institutions can play an important role in the re-entry mode choices of MNEs in host markets. In a recent study, Leppäaho et al (2023) stressed the role played by opportunity seeking and microhistory in the context of internationalization. We also argue that, in the case of Yamaha, multiple forms of learning – e.g.…”

Section: Discussionmentioning

confidence: 99%

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Market exit and re-entry in a volatile emerging economy: a case study of Yamaha motorcycles in Pakistan

Khan

Zahoor

Arslan

et al. 2023

MBR

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Purpose This study aims to understand the dynamics underpinning the exit and re-entry strategies adopted by multinational enterprises (MNEs) in an emerging market, Pakistan. Design/methodology/approach This study undertook an in-depth historical case study of Yamaha Motorcycles, which had initially entered Pakistan as a joint venture but had then exited and re-entered as a wholly owned subsidiary. Findings This study found that, despite its status as a market leader and one of the older players in the Pakistani market, changing market dynamics in the 2000s – especially the increased competition brought by more affordable (inexpensive) Chinese motorcycles and the weak enforcement of industrial policies – had pushed Yamaha Motorcycles to exit. Another factor that had contributed to its exit were differences in risk perception and strategies with its local joint venture partner (a Pakistani business group). Hence, both firm-level and institutional factors had played significant roles in Yamaha’s market exit. This study further found that re-entering in a wholly owned subsidiary operation mode had been beneficial for the firm, as it gained a significant market share due to its focus on innovation and on capturing a market niche, which had earlier not been its main focus. The findings also suggest that opportunity logics and multiple forms of learning can be important for a firm’s re-entry into a host market – such as experiential (i.e. learning from experience) and vicarious learning (i.e. learning from other organizations, including suppliers and competitors) in an emerging market context, in which institutions evolve amid political and policy uncertainty. Finally, this study found that exit and re-entry timing is an important factor for the development of competitive advantage in a host market. Originality/value This study is among the few to have investigated the exit and re-entry strategies of MNEs in emerging markets. The relatively short time during which Yamaha Motorcycles had been out of the market had benefited it on its re-entry, as the firm had been able to capitalize on its prior learning and ties to suppliers’ networks.

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Section: Discussionmentioning

confidence: 99%

“…experiential and vicarious) of learning and opportunity logics (cf. Leppäaho et al , 2023), and that these can be important in the context of uncertain and volatile emerging markets.…”

Section: Introductionmentioning

confidence: 99%

Market exit and re-entry in a volatile emerging economy: a case study of Yamaha motorcycles in Pakistan

Khan

Zahoor

Arslan

et al. 2023

MBR

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Time matters: Rethinking the role of time in the philosophical, conceptual and methodological domains of international business

Plakoyiannaki,

Paavilainen-Mäntymäki,

Hassett

et al. 2024

Journal of World Business

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CEO childhood trauma experience and firm internationalization

Du,

Xiang,

Ruan

2024

CMS

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Purpose The purpose of this study is to examine how the childhood trauma experiences of CEOs influence firms’ internationalization. Design/methodology/approach The research used a difference-in-difference method with constructing a treatment group whose chief executive officer (CEO) experienced the great famine in China between the ages of 7 and 11, and a control group whose CEO was born within three years after 1961. Findings The study reveals a significant inverse correlation between CEOs’ childhood trauma experiences and firm internationalization. However, this correlation is weaker in the case of state-owned enterprises and firms led by CEOs with overseas work experience. Originality/value To the best of the authors’ knowledge, this study is the first to extend the theoretical framework to elucidate firms’ internationalization by introducing childhood trauma theory into the field of international business literature. Second, the authors link the literature on the effect of CEO explicit traits and psychological traits on firm internationalization by exploring how CEOs’ childhood trauma experience shapes their risk aversion, which, in turn, influences firm internationalization. Third, the authors address the call for examining the interplay of CEO life experiences by scrutinizing the moderating effect of CEO overseas work experience on the association between CEOs’ childhood trauma exposure and firm internationalization.

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Opportunity beliefs in internationalization: A microhistorical approach

Cited by 3 publications

References 39 publications

Market exit and re-entry in a volatile emerging economy: a case study of Yamaha motorcycles in Pakistan

Market exit and re-entry in a volatile emerging economy: a case study of Yamaha motorcycles in Pakistan

Time matters: Rethinking the role of time in the philosophical, conceptual and methodological domains of international business

CEO childhood trauma experience and firm internationalization

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