Equity Ownership Strategy in Greenfield Investments : Influences of Host Country Infrastructure and MNE Resources in Emerging Markets

This chapter addresses equity ownership strategy in greenfield investments by multinational enterprises (MNEs) in the emerging markets (EMs). It is one of the few studies to hypothesize and analyze influences of host EM physical infrastructure in relation to investment decisions of MNEs. We use resource dependence theory (RDT) as a theoretical basis and test the moderating effects of firm resources like size and host country investment experience. Moreover, the current study assumes a more nuanced approach to studying equity ownership by analyzing wholly owned subsidiaries versus joint ventures (JVs) and including majority versus minority JVs in the analysis as well. The empirical results based on greenfield investments undertaken by Nordic (Danish, Finnish, Norwegian, and Swedish) MNEs in EMs during 1990–2015 reveals the importance of host country physical infrastructure for high equity ownership strategy. Moreover, host country investment experience moderates the effect of physical infrastructure on equity ownership strategy. Finally, the analysis of a sub-sample of greenfield JVs reveals that determinants of equity ownership strategy differ somewhat between greenfield JV or greenfield wholly owned subsidiaries (WOS).© The Author(s) 2019.fi=vertaisarvioitu|en=peerReviewed

Conceptualizing and measuring strategy implementation – a multi-dimensional view

Through quantitative methodological approaches for studying the strategic management and planning process, analysis of data from 208 senior managers involved in strategy processes within ten UK industrial sectors provides evidence on the measurement properties of a multi-dimensional instrument that assesses ten dimensions of strategy implementation. Using exploratory factor analysis, results indicate the sub-constructs (the ten dimensions) are uni-dimensional factors with acceptable reliability and validity; whilst using three additional measures, and correlation and hierarchical regression analysis, the nomological validity for the multi-dimensional strategy implementation construct was established. Relative importance of ten strategy implementation dimensions (activities) for practicing managers is highlighted, with the mutually and combinative effects drawing conclusion that senior management involvement leads the way among the ten key identified activities vital for successful strategy implementation

Ex-post Performance Implications of Divergence of Managers’ Perceptions of ‘Distance’ From ‘Reality’ in International Business

Despite much research on “distance”, little attention has been paid to the effect of divergence of managers’ perceptions of distance from reality (i.e. distance divergence) and its implications for firm performance. This knowledge is highly important since managerial perceptions of the firm’s environment do not always coincide with the actual environmental characteristics. Consequently, strategies based on inaccurate data may result in erroneous forecasts, missed opportunities and business failure. Using survey data from senior managers of Swedish exporters and corresponding objective data, this study is a first attempt to explore the ex-post performance implications of “distance divergence” when expanding into foreign markets. Our results demonstrate that the larger the divergence between managers’ perceptions of cultural distance and corresponding “objective” distance, the lower the performance expressed in companies’ sales. However, over/underestimation of cultural distance does not have differential effects on firm performance.“Stiftelsen Olle Hakelius Stipendiefond”, Grant no: 1165001

S-D logic-informed customer engagement: Integrative framework, revised fundamental propositions, and application to CRM

Advance online in 2016</p

Obstacles to export initiation and expansion

The increasing globalization of markets witnessed in recent years has been paralleled by growing research attention upon the internationalization of small and medium sized firms. In industrialized nations, a significant degree of dormant export potential has been identified in this firm size sector. The proliferation of extant literature can explain structural, behavioural and process-based aspects of export expansion. However, it remains that limited conceptual and empirical insights exist that explain the phenomena underlying pre-export decision making and behaviour. The present inquiry addresses this issue and investigates those obstacles that act upon domestic firms' intentions to enter overseas markets via the export channel. Specifically, the empirical study documented here establishes significant differences in the extent to which exporting obstacles discourage export engagement amongst varied groups of domestic firms considered in terms of their export intention. It also draws a similar comparison between such groups of non-exporting firms and those already engaged in export operations. The findings are interpreted and discussed in the light of current knowledge and attention is paid towards pertinent implications for export management and future research.exports implementation interfirm comparisons internationalization marketing strategy