The interactions of institutions on foreign market entry mode

Ang, Swee Hoon; Benischke, Mirko H.; Doh, Jonathan P.

doi:10.1002/smj.2295

Cited by 173 publications

(171 citation statements)

References 96 publications

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“…Because all these studies have used numbers of prior choices as a predictor of current ones, they have, however, been unable to unambiguously establish why firms often make the same choices as they themselves and their peers made before. Some studies have argued that firms learn from prior choices (e.g., Padmanabhan & Cho, 1999;Vermeulen & Barkema, 2001) whereas others have added that they may also imitate such choices, either ritualistically or to establish intra-firm or local external legitimacy (e.g., Ang, Benischke, & Doh, 2014;Guillen, 2003;Yiu & Makino, 2002). There may also be a third -hitherto overlooked -explanation, that is, the continued presence of key factors that led the focal firm or its peers to use the same mode for previous entries.…”

Section: Research Avenuesmentioning

confidence: 98%

Yes, we really do need more entry mode studies! A commentary on Shaver

2014

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In a recent commentary published in this journal, Shaver raises the provocative question of whether we need more entry mode studies. After assessing the reasons for Shaver's doubts and further developing his broad research suggestions, we conclude that this question should be answered affirmatively. We derive three important questions for future entry mode research: (1) What determines the evolution of operations resulting from suboptimal mode choices?(2) What causes the replication of past mode choices? (3) How is the entry decision process structured? Focusing on these questions should assure a bright future for entry mode research. INTRODUCTIONIn a provocative commentary upon Keith Brouthers winning the 2012 JIBS Decade Award, Shaver (2013) raises the fundamental question of whether we need more entry mode studies. We argue that this question needs to be answered affirmatively for three reasons. First, we contend that Shaver's doubts about the need for more studies are based on an overly rosy view of the state of knowledge about entry modes. Second, we find that his doubts are partly unnecessary because the bulk of recent studies published in top-level journals still make what he himself would consider nonincremental contributions. Third, although we are glad that Shaver in the end also sees a future for entry mode research, we see several ways in which his rather general research suggestions can be developed further to generate important new insights. Specifically, we recommend that future studies focus on three important questions: (1) What determines the evolution of foreign operations resulting from suboptimal entry mode choices?(2) What causes multinational enterprises (MNEs) to replicate past mode choices? (3) What is the structure of the process through which MNE managers select an entry mode? Focusing on these questions will likely yield the "substantive and potentially transformative contributions" that Shaver (2013: 24) asks for, on top of the ones made by extant top-level studies published since Brouthers (2002).

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Section: Research Avenuesmentioning

confidence: 98%

Yes, we really do need more entry mode studies! A commentary on Shaver

2014

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“…According to the World Investment Report (WIR, ), most emerging economy governments (e.g., China and Brazil) now actively encourage local enterprises to go global. While most studies have focused on MNCs from developed economies, a growing body of studies (e.g., Ang, Benischke, & Doh, ; Contractor, Kumar, & Kundu, ; Kalasin, Dussauge, & Rivera‐Santos, ; Peng, ; Sun, Peng, Ren, & Yan, ; Yaprak & Karademir, ) have examined the expansion behavior and international entry strategies of emerging market firms into other foreign markets.…”

Section: Introductionmentioning

confidence: 99%

Performance and business relatedness as drivers of exit decision: A study of MNCs from an emerging country

Tan

Sousa

2017

Global Strategy Journal

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Research Summary This study examines the exit behavior of emerging market MNCs in the context of the parent company (PC)‐foreign affiliate (FA) relationship. Specifically, we consider business relatedness as a moderating variable and examine its impact on the relationship between an FA’s international performance and its exit decision from a foreign market. Our results, based on data collected from multiple informants in 180 Chinese firms, indicate that product relatedness and intangible resource relatedness have different moderating impacts on the FA performance‐FA exit decision relationship. Implications of these findings, along with the limitations of the study, are discussed. Managerial Summary Although the research on international entry and expansion is particularly important, an aspect that has been largely ignored in the literature is the exit behavior of firms. This study examines whether the extent to which a foreign subsidiary is similar to its parent's core business may influence the firm's exit decision. The findings indicate that managers are more likely to exit a poorly performing FA if there is a high (vs. low) level of product relatedness between the FA and its PC's core business. The results also suggest that intangible resource relatedness exerts a different contingent effect on the FA performance‐FA exit relationship than does product relatedness.

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“…According to a manager of HPP, "Two things move us: the first is the certainty that this is the best choice; the second is because this is the best and we are going to do this with people and sometimes in spite of people" (Interview HPP-01, emphasis added). This revealed a conflict between concern with organizational performance and relevant institutions, which highlights the influence of the environment on organizational choices, and decisions based on the assumption of a strategy-mediated impact of institutional pressure (Ang et al, 2015;Paroutis & Heracleous, 2013).…”

Section: Tension Between Internal Conditions and Environmental Pressuresmentioning

confidence: 99%

“…Although these are not the only explanatory elements of the strategy formation process, it is recognized that their implications challenge the transformation of intentions into actions. After all, being institutionally embedded (Greenwood et al, 2014;Peng, Sun, Pinkhan, & Chen, 2009), the strategic decisions of agents are influenced not only by results from a purely economic viewpoint but also by aspects perceived as socially appropriate (Ang, Benischke, & Doh, 2015;Lieberman & Asaba, 2006).…”

Section: Organization Strategies and The Environmentmentioning

confidence: 99%

Strategic Management in Hospitals: Tensions between the Managerial and Institutional Lens

Pascuci

Júnior

Crubellate

2017

BAR, Braz. Adm. Rev.

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The relationship between organizations and their environments has been object of study by scholars of the theory of organizations and in discussions concerning organizational strategy. When these perspectives come together, two sets of different but overlapping forces in the strategy formation process are highlighted. The purpose of this study is to analyze how strategic management contributed to reducing tensions derived from managerial and institutional logics in philanthropic hospitals. It is a comparative case study, with a multi-method approach. The data were examined using narrative and document analysis techniques. The analysis indicated that integrating organizational-managerialist and institutional perspectives raises continuous tensions within organizations with a direct impact on managerial decisions, strategic actions and performance. The strategic management approach should be sensitive enough to recognize and reduce these tensions and find ways to integrate them more effectively. This effort requires a combination of strong leadership skills and appropriate managerial tools. Flexibility, adaptability, creativity and informal interactions should be the basis of any strategic initiatives. Daring and innovation of the hospitals -more than acquiescence -are essential to their social and financial sustainability.

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The interactions of institutions on foreign market entry mode

Cited by 173 publications

References 96 publications

Yes, we really do need more entry mode studies! A commentary on Shaver

Yes, we really do need more entry mode studies! A commentary on Shaver

Performance and business relatedness as drivers of exit decision: A study of MNCs from an emerging country

Strategic Management in Hospitals: Tensions between the Managerial and Institutional Lens

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