Entry and access to competencies abroad: Emerging market firms versus advanced market firms

Journal of International Management

Volumn 20, Issue 2, 2014, Pages 137-152

  De Beule, Filip ^a   Elia, Stefano ^b   Piscitello, Lucia ^b  

^a UNIVERSITY OF LEUVEN   (Belgium)

^b POLITECNICO DI MILANO   (Italy)

Author keywords

Acquisitions; Emerging market firms; Endogenous and exogenous uncertainty; Entry mode; Institutional distance; Liability of origin

Indexed keywords

EID: 84899989122     PISSN: 10754253     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.intman.2013.05.002     Document Type: Article

References (80)

1. Anand J., Delios A. Location specificity and the fungibility of downstream assets to foreign subsidiaries. Journal of International Business Studies 1997, 28:579-604.
2. Anand J., Delios A. Absolute and relative resources as determinants of international acquisitions. Strategic Management Journal 2002, 23:119-134.
3. Anand J., Kogut B. Technological capabilities of countries, firm rivalry and foreign direct investment. Journal of International Business Studies 1997, 28:445-465.
4. Aulakh P.S. Emerging multinationals from developing economies: motivations, paths and performance. Journal of International Management 2007, 13:235-240.
5. Balakrishnan S., Koza M. Information asymmetry, adverse selection and joint ventures: Theory and evidence. Journal of Economic Behavior and Organization 1993, 20:99-117.
6. Barkema H.G., Vermeulen F. International expansion through start-up or acquisition: a learning perspective. Academy of Management Journal 1998, 47:7-26.
7. Billitteri C., Lo Nigro G., Perrone G. How risk influences the choice of governance mode in biopharmaceutical inter-firm relationships. International Business Review 2013, (in press).
8. Blodgett L. Partner contributions as predictions of equity share in international joint ventures. Journal of International Business Studies 1991, 22:63-78.
9. Brouthers K.D. Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of International Business Studies 2002, 33:203-221.
10. Brouthers K.D., Brouthers L.E. Acquisition or greenfield start-up? Institutional, cultural, and transaction cost influences. Strategic Management Journal 2000, 21:89-97.
11. Brouthers K., Hennart J. Boundaries of the firm: insights from international entry mode research. Journal of Management 2007, 33:395-425.
12. Brown J.R., Dev C.S., Zhou Z. Broadening the foreign market entry mode decision: separating ownership and control. Journal of International Business Studies 2003, 34:473-488.
13. Caves R.E., Mehra S.K. Entry of foreign multinationals into the U.S. manufacturing industries. Competition in Global Industries 1986, Harvard Business School, Boston. M. Porter (Ed.).
14. Chari M., Chang K. Determinants of the share of equity sought in cross-border acquisitions. Journal of International Business Studies 2009, 40:1277-1297.
15. Chen S. The motives for international acquisitions: capability procurements, strategic considerations, and the role of ownership structures. Journal of International Business Studies 2008, 39:454-471.
16. Chen S., Hennart J. Japanese investors' choice of joint ventures vs. wholly-owned subsidiaries in the US: the role of market barriers and firm capabilities. Journal of International Business Studies 2002, 33:1-18.
17. Chiao Y.C., Lo F.Y., Yu C.M. Choosing between wholly-owned subsidiaries and joint ventures of MNCs from an emerging market. International Marketing Review 2010, 27:338-365.
18. Child J., Rodrigues S.B. The internationalization of Chinese firms: a case for theoretical extension?. Management and Organization Review 2005, 1:381-410.
19. Cuervo-Cazurra A., Genc M. Transforming disadvantages into advantages: developing country MNEs in the least developed countries. Journal of International Business Studies 2008, 39:957-979.
20. Dikova D., van Witteloostuijn A. Foreign direct investment mode choice: entry and establishment modes in transition economies. Journal of International Business Studies 2007, 38:1013-1033.
21. Erramilli M.K. The experience factor in foreign market entry behavior of service firms. Journal of International Business Studies 1991, 22:479-501.
22. Eurostat-OECD Science, Technology and Innovation in Europe 2007, Eurostat Pocketbooks.
23. Fatica S. Investment liberalization and cross-border acquisitions: the effect of partial foreign ownership. Review of International Economics 2010, 18:320-333.
24. Florida R. The globalization of R & D: results of a survey of foreign-affiliated R&D laboratories in the USA. Research Policy 1997, 26:85-103.
25. Folta T.B. Governance and uncertainty: the trade-off between administrative control and commitment. Strategic Management Journal 1998, 19:1007-1028.
26. Gammeltoft P., Barnard H., Madhok A. Emerging multinationals, emerging theory: macro- and micro-level perspectives. Journal of International Management 2010, 16:95-101.
27. Gooris J., Peeters C. Home-host country distance in offshore governance choices. Journal of International Management 2014, 20:73-86.
28. Guillen M., Garcia-Canal E. The American model of multinational firm and the "new" multinationals from emerging economies. Academy of Management Perspectives 2009, 23:23-35.
29. Gulati R., Singh H. The architecture of cooperation: managing coordination costs and appropriation concerns for strategic alliances. Administrative Science Quarterly 1998, 43:781-814.
30. Hagedoorn J., Duysters G.M. External sources of innovative capabilities: the preference for strategic alliances or mergers and acquisitions. Journal of Management Studies 2002, 39:167-188.
31. Harrigan K.R. Vertical integration and corporate strategy. Academy of Management Review 1985, 28:397-425.
32. Hennart J.-F. The transaction costs theory of joint ventures: an empirical study of Japanese subsidiaries in the United States. Management Science 1991, 37:483-497.
33. Hennart J.-F. A transaction costs theory of equity joint ventures. Strategic Management Journal 1988, 9(4):361-374.
34. Hennart J.-F. Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets. Journal of International Business Studies 2009, 40:1432-1454.
35. Hennart J.-F., Larimo J. The impact of culture on the strategy of multinational enterprises: does national origin affect ownership decisions by foreign direct investors into the United States?. Journal of International Business Studies 1998, 29:515-538.
36. Hennart J.-F., Park Y.R. Greenfield vs. acquisition: the strategy of Japanese investors in the United States. Management Science 1993, 39:1054-1070.
37. John G., Weitz B.A. Forward integration into distribution: an empirical test of transaction cost analysis. Journal of Law, Economics, and Organization 1988, 4:337-355.
38. Kane T., Holmes K.R., O'Grady M.A. 2007 Index of Economic Freedom 2007, The Heritage Foundation and Dow Jones & Company, Inc., Washington, DC and New York, (http://www.heritage.org/research/features/index/downloads/Index2007.pdf).
39. Kogut B. Joint ventures and the option to expand and acquire. Management Science 1991, 37:19-33.
40. Kogut B., Singh H. The effect of national culture on the choice of entry mode. Journal of International Business Studies 1988, 19(3):411-432.
41. Kostova T. Transnational transfer of strategic organizational practices: a contextual perspective. Academy of Management Review 1999, 24:308-324.
42. Kostova T., Zaheer S. Organizational legitimacy under conditions of complexity: the case of the multinational enterprise. Academy of Management Review 1999, 24:64-81.
43. Kuemmerle W. The drivers of foreign direct investment into research and development: an empirical investigation. Journal of International Business Studies 1999, 30:1-24.
44. Li Y., Peng M.W. Developing theory from strategic management research in China. Asia Pacific Journal of Management 2008, 25:563-572.
45. López-Duarte C., García-Canal E. Adverse selection and the choice between joint ventures and acquisitions: evidence from Spanish firms. Journal of Institutional and Theoretical Economics 2002, 158:304-324.
46. Luo Y., Tung R.L. International expansion of emerging market enterprises: a springboard perspective. Journal of International Business Studies 2007, 38:481-498.
47. Madhok A. The nature of multinational firm boundaries: transaction cost, firm capabilities and foreign market entry mode. International Business Review 1998, 7:259-290.
48. Makino S., Neupert K.E. National culture, transaction costs, and the choice between joint venture and wholly owned subsidiary. Journal of International Business Studies 2000, 31:705-713.
49. Mariotti S., Mutinelli M. Italia Multinazionale 2010 2010, Rubbettino Editore, Soveria Mannelli.
50. Mathews J.A. Dragon multinationals: new players in 21st century globalization. Asia Pacific Journal of Management 2006, 23:5-27.
51. Meyer K.E. Institutions, transaction costs and entry mode choice in Eastern Europe. Journal of International Business Studies 2001, 31:357-367.
52. Meyer K.E., Nguyen H.V. Foreign investment strategies and sub-national institutions in emerging markets: evidence from Vietnam. Journal of Management Studies 2005, 42:63-93.
53. Meyer K.E., Estrin S., Bhaumik S.K., Peng M.W. Institutions, resources, and entry strategies in emerging economies. Strategic Management Journal 2009, 30:61-80.
54. Meyer K.E., Wright M., Pruthi S. Managing knowledge in foreign entry strategies: a resource-based analysis. Strategic Management Journal 2009, 30:557-574.
55. Meyer K., Mudambi R., Narula R. Multinational enterprises and local contexts: the opportunities and challenges of multiple embeddedness. Journal of Management Studies 2011, 48:235-252.
56. Milliken F.J. Three types of perceived uncertainty about the environment: state, effect and response uncertainty. Academy of Management Review 1987, 12:133-143.
57. Morschett D., Schramm-Klein H., Swoboda B. Decades of research on market entry modes: what do we really know about external antecedents of entry mode choice?. Journal of International Management 2010, 16(1):60-77.
58. Pant A. The liabilities of origin: a perspective on location and legitimacy in international business. EIBAzine 2012, 11:2-5. (November).
59. Phene A., Tallman S., Almeida P. When do acquisitions facilitate technological exploration and exploitation?. Journal of Management 2012, 38:753-783.
60. Porter M.E. Competitive Strategy 1980, Free Press, New York.
61. Ramachandran J., Pant A. The liabilities of origin: an emerging economy perspective on the costs of doing business abroad. Advances in International Management 2010, volume 23:231-265. Emerald Group Publishing Limited. T. Devinney, T. Pedersen, L. Tihanyi (Eds.).
62. Ravenscraft D.J., Scherer F.M. Life after takeover. The Journal of Industrial Economics 1987, 36:147-157.
63. Rui H., Yip G. Foreign acquisitions by Chinese firms: a strategic intent perspective. Journal of World Business 2008, 43:213-226.
64. Santoro M.D., McGill J.P. The effect of uncertainty and asset co-specialization on governance in biotechnology alliance. Strategy Management Journal 2005, 26:1261-1269.
65. Stucchi T. Emerging market firms' acquisitions in advanced markets: matching strategy with resource-, institution- and industry-based antecedents. European Management Journal 2012, 30(3):278-289.
66. Sutcliffe K.M., Zaheer A. Uncertainty in the transaction environment: an empirical test. Strategic Management Journal 1998, 19:1-23.
67. Uhlenbruck K., Rodriguez P., Doh J., Eden L. The impact of corruption on entry strategy: evidence from telecommunication projects in emerging economies. Organization Science 2006, 17:402-414.
68. Van Assche A. Dissecting developing country multinationals' home-grown advantages. Proceedings of the EIBA Annual Conference: Taking International Business to the Next Level - Emerging Issues, Strategies and Economies 2011, Academy of Economic Studies, Bucharest. L. Voinea (Ed.).
69. van de Vrande V., Vanhaverbeke W., Duysters G. External technology sourcing: the effect of uncertainty on governance mode choice. Journal of Business Venturing 2009, 24:62-80.
70. Vanhaverbeke W., Duysters G., Noorderhaven N. External technology sourcing through alliances or acquisitions: an analysis of the application-specific integrated circuits industry. Organization Science 2002, 13:714-733.
71. Walker G., Weber D. Supplier competition, uncertainty, and make or buy decisions. Academy of Management Journal 1987, 30:589-596.
72. Whited T.M. External finance constraints and the intertemporal pattern of intermittent investment. Journal of Financial Economics 2006, 81:467-502.
73. Xu D., Shenkar O. Institutional distance and the multinational enterprise. Academy of Management Review 2002, 27:608-618.
74. Yasai-Ardekani M. Structural adaptations to environments. Academy of Management Review 1986, 11:9-21.
75. Yildiz H.E. Not all differences are the same: dual roles of status and cultural distance in sociocultural integration in cross-border M&As. Journal of International Management 2014, 2014:25-37.
76. Yiu D., Makino S. The choice between joint venture and wholly owned subsidiary: an institutional perspective. Organization Science 2002, 13:667-683.
77. Zaheer S. Overcoming the liability of foreignness. Academy of Management Journal 1995, 38:341-363.
78. Zaheer S., Schomaker M.S., Nachum L. Distance without direction: restoring credibility to a much-loved construct. Journal of International Business Studies 2012, 43:18-27.
79. Zeng M. Managing the cooperative dilemma of joint ventures: the role of structural factors. Journal of International Management 2003, 9(2):95-113.
80. Zhao H., Luo Y., Suh T. Transaction cost determinants and ownership-based entry mode choice: A meta-analytic review. Journal of International Business Studies 2004, 35:524-544.