Expanding to institutionally different countries. Reasons, Firm International Experience, and Entry Mode Choice

Détails

ID Serval
serval:BIB_288A963F0E4A
Type
Partie de livre
Sous-type
Chapitre: chapitre ou section
Collection
Publications
Titre
Expanding to institutionally different countries. Reasons, Firm International Experience, and Entry Mode Choice
Titre du livre
Strategic Alliances in a Globalizing World
Auteur(s)
Castañer X., Genç M.
Editeur
IAP (Information Age Publishing)
Lieu d'édition
Charlotte, NC, USA
ISBN
978-1-61735-378-9
Statut éditorial
Publié
Date de publication
03/2011
Editeur scientifique
Das T. K.
Série
Research in Strategic Alliances
Pages
1-25
Langue
anglais
Résumé
We examine entry mode choice and its consequences when a multinational enterprise (MNE) expands into an institutionally different country. We argue that discussions of entry mode should distinguish between informal (e.g., culture) and formal (e.g., laws) institutions, and should take into account not just the home country of the MNE and its distance to the focal host country, but the MNE's overall footprint and experience across the world in general, especially in countries with an institutional structure that is similar to that of the focal host country. Specifically, we argue that firms with experience in countries with different informal institutions will be more likely to enter via acquisitions than firms without such experience, that such experience will not matter as much in the case of formal institutions, and that such firms will exit more quickly when they enter via equity alliances than through full acquisitions. We also distinguish between balanced and unbalanced alliances and argue that balanced alliances will be more enduring, but only when the host country is culturally (not legally) different from the other countries where the MNE has experience. Our arguments suggest that entry mode should be conditioned on a firm's experience in other markets, and that intercountry differences in formal versus informal institutions have distinct influences on entry mode.
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Création de la notice
11/11/2010 16:06
Dernière modification de la notice
20/08/2019 13:08
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