Foreign entry mode selection strategies in banking: an issue of control and resources

The increase in foreign acquisitions and joint ventures, which have followed recent environmental changes in the banking sector, suggest that banks have modified their internationalization strategies. Motivated by this observation and the lack of research which could explain the foreign entry mode selection strategies of banks, this study has developed and tested a framework of foreign entry mode selection in banking. Drawing on existing literature, the study argues that managers select entry routes based on their desire for control and need for complementary resources. These motives are products of the evaluation of host country, target market and firm-specific factors. This two-stage model has been tested by collecting data through mailed questionnaires sent to 600 bank managers. Using multinomial logit and multiple regression, the validated data from 124 usable questionnaires were analyzed. The results suggest that bank managers' motives for control and resources can determine the selection of foreign direct investment (FDI) entry modes. Control motives differentiate greenfield investments and acquisitions from joint ventures, and resource motives differentiate acquisitions and joint ventures from greenfield investments. When both motives are considered together, one entry mode is determined. However, findings have shown that these motives are not a result of the evaluation of the foreign venture under investigation, rather, they reflect mangers' general preferences for control and resources. Drawing on these findings, this piece of research has proposed a single-stage model where these preferences are evaluated concurrently with factors related to the specific entry. Testing this model has shown that besides bank managers' general preferences for control and resources, host country risks, target market conditions and the bank's product and network strategies also influence the choice of entry modes. By considering both control and resource issues, this study has managed to integrate previous research on entry mode selection and comprehensively investigate all FDI entry modes. In addition, it has provided a paradigm of integration of the macro-level economic theories on internationalization of banking with firm-focused theories. This has been achieved by consolidating Dunning's eclectic theory with entry mode selection themes such as transaction cost analysis, barriers to entry, internationalization process and network coordination and configuration

Economic evaluation using decision analytical modelling : design, conduct, analysis, and reporting

Economic evaluations are increasingly conducted alongside randomised controlled trials, providing researchers with individual patient data to estimate cost effectiveness. However, randomised trials do not always provide a sufficient basis for economic evaluations used to inform regulatory and reimbursement decisions. For example, a single trial might not compare all the available options, provide evidence on all relevant inputs, or be conducted over a long enough time to capture differences in economic outcomes (or even measure those outcomes). In addition, reliance on a single trial may mean ignoring evidence from other trials, meta-analyses, and observational studies. Under these circumstances, decision analytical modelling provides an alternative framework for economic evaluation. Decision analytical modelling compares the expected costs and consequences of decision options by synthesising information from multiple sources and applying mathematical techniques, usually with computer software. The aim is to provide decision makers with the best available evidence to reach a decision—for example, should a new drug be adopted? Following on from our article on trial based economic evaluations, we outline issues relating to the design, conduct, analysis, and reporting of economic evaluations using decision analytical modelling

Entrepreneurial growth expectations and information flows in networks.

The study analyzes entrepreneur’s expectations regarding future growth by analyzing the relationship between information flows from networks and the perceived risk of decisions associated with the future size of a firm. The main proposition is that growth expectations might be the outcome of superior judgment stemming from privileged information derived from networks. To provide evidence in support of this hypothesis a sample selection model is estimated using a two-step estimation procedure. Cross-section questionnaire data are used in the empirical analysis. Evidence is provided on the role of inter-firm contacts and relationships as a mechanism able to assist entrepreneurs in better assessing and even reduce the risk and uncertainty associated with their present and future decisions regarding firm growth. The study provides evidence on the factors affecting expected growth rates while it explicitly formulates and tests the hypothesis that expectations regarding growth might be the outcome of superior judgment stemming from privileged information derived from networks. Analysis indicates that networks are indeed information mechanisms, however, such information should be specific to problem solving firm processes. Better informed entrepreneurs are those that foresee higher growth in the future, yet they are not blocked in only local networking.small firms; expected growth; networks; information; Greece.

Small Business Performance in Urban Tourism

Research findings indicate that the successful performance of small businesses is an important determinant of regional development. Successful business performance is affected by a number of firm-specific factors including human and social capital. Although, small and medium firms comprise the vast majority of the tourism production system, research on small business performance in tourism is rather limited. Drawing on recent advances and empirical evidence from enterpreneurship and small business literature we control first, for the role of human and social capital and second, for the role of owners'/managers' perceptions of place attractiveness over small business performance. We hypothesise that such perceptions should have specific effects on tourism business performance. Analysis is based on cross-sectional data gathered from face-to-face interviews with small tourism businesses owners/managers in Patras, Greece.

Entrepreneurial culture and innovation in the services sector: case study evidence from Greece

Innovation in the services sectors has been a rather neglected research area under the commonly held view that manufacturing firms are the main drivers of innovation in developed economies. The rise of the service economy has redirected the research agenda towards the potential of services firms to adopt innovation activity. Here we analyze the determinants of innovation activity in the tourism industry, which is one of the fastest growing service industries in the world. Our analysis builds upon the theoretical notion of entrepreneurial culture in order to suggest that entrepreneurs possess such culture when they actively and consciously seek information in order to underwrite the risk and ambiguity inherent in actions such as innovation activity. At the empirical level, entrepreneurial culture is approximated by active engagement in networking activity. Our results indicate that both internal and external to the firm social capital generation processes, determine innovation activity in tourism and provide evidence over the selective nature of information networks.social capital, innovation, firm behavior