The Moderating Impact of Informal Institutional Distance and Formal Institutional Risk on SME Entry Mode Choice

Journal of Management Studies

Volumn 48, Issue 2, 2011, Pages 330-351

  Schwens, Christian ^a   Eiche, Julia ^a   Kabst, Ruediger ^a  

^a JUSTUS LIEBIG UNIVERSITY   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79951575576     PISSN: 00222380     EISSN: 14676486     Source Type: Journal    
DOI: 10.1111/j.1467-6486.2010.00970.x     Document Type: Article

References (85)

1. Agarwal, S. and Ramaswami, S. N. (1992). 'Choice of foreign market entry mode: impact of ownership, location and internalization factors'. Journal of International Business Studies, 23, 1-27.
2. Ai, C. and Norton, E. C. (2003). 'Interaction terms in logit and probit models'. Economic Letters, 80, 123-29.
3. Allison, P. D. (1999). Multiple Regression: A Primer. Thousand Oaks, CA: Pine Forge.
4. Allison, P. D. (2002). Missing Data. Thousand Oaks, CA: Sage.
5. Anand, J. and Delios, A. (1997). 'Location specificity and the transferability of downstream assets to foreign subsidiaries'. Journal of International Business Studies, 28, 579-603.
6. Anderson, D. R., Sweeney, D. J. and Williams, T. A. (1996). Statistics for Business and Economics. St Paul, MN: South-Western College Publishing.
7. Armstrong, J. S. and Overton, T. S. (1977). 'Estimating non-response bias in mail surveys'. Journal of Marketing Research, 14, 396-402.
8. Autio, E., Sapienza, H. J. and Almeida, J. G. (2000). 'Effects of age at entry, knowledge intensity, and imitability on international growth'. Academy of Management Journal, 43, 909-24.
9. Baird, I. S., Lyles, M. A. and Orris, J. B. (1994). 'The choice of international strategies by small business'. Journal of Small Business Management, 32, 48-59.
10. Bogner, W. C., Thomas, H. and McGee, J. (1996). 'A longitudinal study of the competitive positions and entry paths of European firms in the U.S. pharmaceutical market'. Strategic Management Journal, 17, 85-107.
11. Brislin, R. W. (1970). 'Back-translation for cross-cultural research'. Journal of Cross-Cultural Psychology, 1, 185-216.
12. Brouthers, K. D. and Brouthers, L. E. (2003). 'Why service and manufacturing entry mode choices differ: the influence of transaction cost factors, risk and trust'. Journal of Management Studies, 40, 1179-204.
13. Brouthers, K. D. and Hennart, J.-F. (2007). 'Boundaries of the firm: insights from international entry mode research'. Journal of Management, 33, 395-425.
14. Brouthers, K. D. and Nakos, G. (2004). 'SME entry mode choice and performance: a transaction cost perspective'. Entrepreneurship Theory and Practice, 28, 229-47.
15. Burgel, O. and Murray, G. C. (2000). 'The international market entry choice of start-up companies in high-technology industries'. Journal of International Marketing, 8, 33-62.
16. Chang, S. J. and Rosenzweig, P. M. (2001). 'The choice of entry mode in sequential foreign direct investment'. Strategic Management Journal, 22, 747-76.
17. Chang, S.-J., van Witteloostuijn, A. and Eden, L. (2010). 'From the editors: common method variance in international business research'. Journal of International Business Studies, 43, 178-84.
18. Criscuolo, P. and Narula, R. (2007). 'Using multi-hub structures for international R&D: organisational inertia and the challenges of implementation'. Management International Review, 47, 1-22.
19. Cuervo-Cazurra, A. and Genc, M. E. (2011). 'Obligating, pressuring, and supporting dimensions of the environment and the non-market advantages of developing-country multinational companies'. Journal of Management Studies, 48, 441-55.
20. Delios, A. and Henisz, W. J. (2000). 'Japanese firms' investment strategies in emerging economies'. Academy of Management Journal, 43, 305-23.
21. Dikova, D. and van Witteloostuijn, A. (2007). 'Foreign direct investment mode choice: entry and establishment modes in transition economies'. Journal of International Business Studies, 38, 1013-33.
22. Erramilli, M. K. and D'Souza, D. E. (1993). 'Venturing into foreign markets: the case of the small service firm'. Entrepreneurship Theory and Practice, 17, 4, 29-41.
23. Erramilli, M. K. and D'Souza, D. E. (1995). 'Uncertainty and foreign direct investment: the role of moderators'. International Marketing Review, 12, 47-60.
24. Erramilli, M. K. and Rao, C. P. (1993). 'Service firms' international entry-mode choice: a modified transaction-cost analysis approach'. Journal of Marketing, 57, 19-38.
25. Estrin, S., Baghdasaryan, D. and Meyer, K. (2009). 'The impact of institutional and human resource distance on international entry strategies'. Journal of Management Studies, 46, 1171-96.
26. Gatignon, H. and Anderson, E. (1988). 'The multinational corporation's degree of control over foreign subsidiaries: an empirical test of a transaction cost explanation'. Journal of Law, Economics & Organization Studies, 19, 305-36.
27. Gelbuda, M., Meyer, K. E. and Delios, A. (2008). 'International business and institutional development in Central and Eastern Europe'. Journal of International Management, 14, 1-11.
28. German Institute of SMEs - Institut für Mittelstandsforschung Bonn (1997). 'Unternehmensgrößenstatistik 1997/98'. Bundesministerium für Wirtschaft und Technologie (BMWI). Bonn.
29. Glaister, K. W. and Buckley, P. J. (1996). 'Strategic motives for international alliance formation'. Journal of Management Studies, 33, 301-32.
30. Golden, B. R. (1992). 'The past is the past - or is it? The use of retrospective accounts as indicators of past strategy'. Academy of Management Journal, 35, 848-60.
31. Goodnow, J. D. and Hansz, J. H. (1972). 'Environmental determinants of overseas market entry strategies'. Journal of International Business Studies, 3, 33-60.
32. Hair, J. E. Jr, Anderson, R. E., Tatham, R. L. and Black, W. C. (1995). Multivariate Data Analysis: With Readings. Upper Saddle River, NJ: Prentice Hall.
33. Haleblian, J. and Finkelstein, S. (1999). 'The influence of organizational acquisition experience on acquisition performance: a behavioral learning perspective'. Administrative Science Quarterly, 44, 29-56.
34. Hannan, M. T., Laszlo, P. and Carroll, G. R. (2002). Structural Inertia and Organizational Change Revisited: The Evolution of Organizational Inertia. Research Paper Series, Stanford University, Graduate School of Business, Stanford, CA.
35. Hayward, M. L. A. (2002). 'When do firms learn from their acquisition experience? Evidence from 1990-1995'. Strategic Management Journal, 23, 21-39.
36. Henisz, W. J. (1998). The Institutional Environment for International Investment: Safeguarding against State Sector Opportunism and Opportunistic Use of the State. Berkeley, CA: University of Berkeley.
37. Henisz, W. J. (2000). 'The institutional environment for economic growth'. Economics and Politics, 12, 1-31.
38. Hoetker, G. (2007). 'The use of logit and probit models in strategic management research: critical issues'. Strategic Management Journal, 28, 331-43.
39. House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W. and Gupta, V. (Eds) (2004). Culture, Leadership, and Organisations: The GLOBE Study of 62 Societies. Thousands Oaks, CA: Sage Publications.
40. Huber, G. P. and Power, D. J. (1985). 'Retrospective reports of strategic level managers: guidelines for increasing their accuracy'. Strategic Management Journal, 6, 171-80.
41. Hutzschenreuter, T., Voll, J. C. and Verbeke, A. (2011). 'The impact of added cultural distance and cultural diversity on international expansion patterns: a Penrosean perspective'. Journal of Management Studies, 48, 305-29.
42. Isobe, T., Makino, S. and Montgomery, D. B. (2000). 'Resource commitment, entry timing, and market performance of foreign direct investments in emerging economies: the case of Japanese international joint ventures in China'. Academy of Management Journal, 43, 468-84.
43. Jaccard, J. (2001). Interaction Effects in Logistic Regression. Sage University Paper Series on Quantitative Applications in the Social Sciences, 07-135. Thousand Oaks, CA: Sage.
44. Javidan, M. and House, R. J. (2001). 'Cultural acumen for global managers: lessons from project GLOBE'. Organizational Dynamics, 29, 289-305.
45. Kim, W. C. and Hwang, P. (1992). 'Global strategy and multinationals' entry mode strategy'. Journal of International Business Studies, 23, 29-53.
46. Klein, S. (1989). 'A transaction cost explanation of vertical control in international markets'. Academy of Management Science, 17, 253-62.
47. Klein, S., Frazier, G. L. and Roth, V. J. (1990). 'A transaction cost analysis model of channel integration in international markets'. Journal of Marketing Research, 27, 196-208.
48. Kwon, Y.-C. and Konopa, L. J. (1993). 'Impact of host country market characteristics on the choice of foreign market entry mode'. International Marketing Review, 10, 60-76.
49. Li, P.-Y. and Meyer, K. E. (2009). 'Contextualizing experience effects in international business: a study of ownership strategies'. Journal of World Business, 44, 370-82.
50. Li, L. and Qian, G. (2008). 'Partnership or self-reliance entry modes: large and small technology-based enterprises' strategies in overseas markets'. Journal of International Entrepreneurship, 6, 188-208.
51. Little, R. J. A. and Rubin, D. B. (1987). Statistical Analysis with Missing Data. New York: Wiley.
52. Luo, Y. (2001). 'Determinants of entry in an emerging economy: a multilevel approach'. Journal of Management Studies, 38, 443-72.
53. Maxwell, S. E. and Delaney, H. D. (1993). 'Bivariate median splits and spurious statistical significance'. Psychological Bulletin, 113, 181-90.
54. McCallum, R., Zhang, S., Preacher, K. J. and Rucker, D. D. (2002). 'On the practice of dichotomization of quantitative variables'. Psychological Methods, 7, 19-40.
55. McClelland, G. H. and Judd, C. M. (1993). 'Statistical difficulties of detecting interactions and moderator effects'. Psychological Bulletin, 114, 376-90.
56. Meyer, K. E. and Nguyen, H. V. (2005). 'Foreign investment strategies and sub-national institutions in emerging markets: evidence from Vietnam'. Journal of Management Studies, 42, 63-93.
57. Meyer, K. E., Estrin, S., Bhaumik, S. K. and Peng, M. W. (2009). 'Institutions, resources, and entry strategies in emerging economies'. Strategic Management Journal, 30, 61-80.
58. Miller, C. C., Cardinal, L. B. and Glick, W. H. (1997). 'Retrospective reports in organizational research: a re-examination of recent evidence'. Academy of Management Journal, 40, 189-204.
59. Morschett, D., Schramm-Klein, H. and Swoboda, B. (2010). 'Decades of research on market entry modes: what do we really know about external antecedents of entry mode choice?'. Journal of International Management, 16, 60-77.
60. Mudambi, R. and Navarra, P. (2002). 'Institutions and international business: a theoretical overview'. International Business Review, 11, 635-46.
61. Nakos, G. and Brouthers, K. D. (2002). 'Entry mode choice of SMEs in Central and Eastern Europe'. Entrepreneurship Theory and Practice, 27, 47-63.
62. North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.
63. Norton, E. C., Wang, H. and Ai, C. (2004). 'Computing interaction effects and standard errors in logit and probit models'. Stata Journal, 4, 154-67.
64. Nunnally, J. (1978). Psychometric Theory. New York: McGraw-Hill.
65. Oviatt, B. M. and McDougall, P. P. (1994). 'Toward a theory of international new ventures'. Journal of International Business Studies, 25, 45-64.
66. Pan, Y. and Tse, D. K. (2000). 'The hierarchical model of market entry modes'. Journal of International Business Studies, 31, 535-54.
67. Peng, M. W. (2000). Business Strategies in Transition Economies. Thousand Oaks, CA: Sage.
68. Podsakoff, P. M. and Organ, D. W. (1986). 'Self-reports in organizational research: problems and prospects'. Journal of Management, 12, 531-44.
69. Powers, E. A. (2005). 'Interpreting logit regressions with interaction terms: an application to the management turnover literature'. Journal of Corporate Finance, 11, 504-22.
70. Ramamurti, R. (2004). 'Developing countries and MNEs: extending and enriching the research agenda'. Journal of International Business Studies, 35, 277-83.
71. Sanchez-Peinado, E., Pla-Barber, J. and Hebert, L. (2007). 'Strategic variables that influence entry mode choice in service firms'. Journal of International Marketing, 15, 67-91.
72. Shaver, J. M. (2005). 'Testing for mediating variables in management research: concerns, implications, and alternative strategies'. Journal of Management, 31, 330-53.
73. Shenkar, O. (2001). 'Cultural distance revisited: towards a more rigorous conceptualization and measurement of cultural differences'. Journal of International Business Studies, 32, 519-35.
74. Simon, H. (1996). Hidden Champions, Lessons from 500 of the World's Best Unknown Companies. Boston, MA: Harvard Business School Press.
75. Slangen, A. H. L. and Hennart, J.-F. (2007). 'Greenfield or acquisition entry: a review of the empirical foreign establishment mode literature'. Journal of International Management, 13, 403-29.
76. Slangen, A. H. L. and van Tulder, R. J. M. (2009). 'Cultural distance, political risk, or governance quality? Towards a more accurate conceptualization and measurement of external uncertainty in foreign entry mode research'. International Business Review, 18, 276-91.
77. Tallman, S. and Chacar, A. S. (2011). 'Knowledge accumulation and dissemination in MNEs: a practice-based framework'. Journal of Management Studies, 48, 278-304.
78. Tatoglu, E., Demirbag, M. and Kaplan, G. (2003). 'Motives for retailer internationalization to Central and Eastern Europe'. Emerging Markets Finance and Trade, 39, 40-57.
79. Tihanyi, L., Griffith, D. A. and Russell, C. J. (2005). 'The effect of cultural distance on entry mode choice, international diversification, and MNE performance: a meta-analysis'. Journal of International Business Studies, 36, 1-14.
80. Van de Vijver, F. and Hambleton, R. K. (1996). 'Translating tests: some practical guidelines'. European Psychologist, 1, 89-99.
81. Whitley, R. (1999). Divergent Capitalisms: The Social Structuring and Change of Business Systems. New York: Oxford University Press.
82. Whitley, R. (2005). 'How national are business systems? The role of states and complementary institutions in standardizing systems of economic coordination and control at the national level'. In Morgan, G., Whitley, R. and Moen, E. (Eds), Changing Capitalisms? Internationalization, Institutional Change, and Systems of Economic Organization. New York: Oxford University Press, 190-231.
83. Wolfe, J. and Jackson, C. (1987). 'Creating models of strategic decision making process via participant recall: a free simulation examination'. Journal of Management, 13, 123-34.
84. Xu, D. and Shenkar, O. (2002). 'Institutional distance and the multinational enterprise'. Academy of Management Review, 27, 608-18.
85. Zhao, H., Luo, Y. and Suh, T. (2004). 'Transaction cost determinants and ownership-based entry mode choice: a meta-analytical review'. Journal of International Business Studies, 35, 524-44.