Charting New Courses to Enter Foreign Markets: Conceptualization, Theoretical Framework, and Research Directions on Non-traditional Entry Modes

Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional modes are encapsulated by the extent of embeddedness required for exploring new and/or exploiting existing resources. In particular, we draw attention to four such categories of non-traditional entry modes the literature has touched on, i.e., capital access, innovation outposts, virtual presence, and managed ecosystem. We explore the key attributes, antecedents, and strategic implications of these modes. Our paper highlights the need for enriching current entry mode research by considering a broader range of entry mode activities available to firms as well as employing new theoretical perspectives to understand the complex phenomena of internationalization

A Longitudinal Study of IJV Performance in Eastern Europe

Why do some international joint ventures (IJV) succeed while others fail? Scholars suggest that cultural differences and trust influence IJV success. Others maintain that ownership and control structures explain performance differences. Still others imply that learning and governmental actions create these differences. We use a longitudinal methodology to examine the impact of all these factors on IJV performance for a sample of Eastern/Western European IJVs. We found that culture, trust, learning, ownership, control and governments all contribute to the success or failure of IJVs.http://deepblue.lib.umich.edu/bitstream/2027.42/39625/3/wp239.pd

A Longitudinal Study of IJV Performance in Eastern Europe

Why do some international joint ventures (IJV) succeed while others fail? Scholars suggest that cultural differences and trust influence IJV success. Others maintain that ownership and control structures explain performance differences. Still others imply that learning and governmental actions create these differences. We use a longitudinal methodology to examine the impact of all these factors on IJV performance for a sample of Eastern/Western European IJVs. We found that culture, trust, learning, ownership, control and governments all contribute to the success or failure of IJVs.joint venture, performance, trust, culture, learning, key stakeholder, onwnership, control

Psychic distance : antecedents, retail strategy implications and performance outcomes

The authors propose a conceptual model of the psychic distance&ndash;organizational performance relationship that incorporates organizational factors (international experience and centralization of decision making), entry strategy, and retail strategy implications. The findings suggest that when entering psychically distant markets, retailers should adopt low-cost/low-control entry strategies and adapt their retail strategy to a greater extent than in psychically close markets. However, the authors find that such strategic responses have an adverse effect on performance. They find that international experience, psychic distance, entry strategy, and retail strategy adaptation are significant drivers of organizational performance and factors that determine critical success in international retailing.<br /

Resource determinants of strategy and performance: the case of British exporters

This study adopts the RBV of the firm in order to identify critical advantage-generating resources and capabilities with strong positive export strategy and performance implications. The proposed export performance model is tested using a structural equation modeling approach on a sample of 356 British exporters. We examine the individual as well as the concurrent (simultaneous) direct and indirect effects of five resource bundles on export performance. We find that four resources/capabilities: managerial, knowledge, planning, and technology, have a significant positive direct effect on export performance, while relational and physical resources exhibited no unique positive effect. We also find that the firm’s export strategy mediates the resource-performance nexus in the case of managerial and knowledge-based resources. The theoretical and methodological grounding of this study contributes to the advancement of export related research by providing better specification of the nature of the effects – direct or indirect – of particular resource factors on export performance

Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies

We investigate foreign market re-entry commitment strategies, namely the changes in the modes of operation (commitment) undertaken by multinational enterprises (MNEs) as they return to foreign markets from which they had previously exited. We combine organisational learning theory with the institutional change literature to examine the antecedents of re-entry commitment strategies. From an analysis of 1,020 re-entry events between 1980 and 2016, we find that operation mode prior to exit is a strong predictor of subsequent re-entry mode. Contrary to the predictions of learning theory, we did not find support for the effect of experience accumulated during the initial market endeavour on the re-entry commitment strategies of MNEs. In turn, exit motives significantly impact on the re-entrants' decision to re-enter via a different mode of operation, by either increasing or decreasing their commitment to the market. We show that re-entrants do not replicate unsuccessful operation mode strategies if they had previously underperformed in the market. When favourable host institutional changes occur during the time-out period re-entrants tend to increase commitment in the host market irrespective of the degree of prior experience accumulated in the market