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Determinants of Entry in an Emerging Economy: A Multilevel Approach

Published on May 1, 2001in Journal of Management Studies5.84
· DOI :10.1111/1467-6486.00244
Yadong Luo64
Estimated H-index: 64
(UM: University of Miami)
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Abstract
The dynamics of the world economy and global competition patterns are encouraging multinational enterprises (MNEs) to expand into emerging economies. This study validates the proposition that entry mode selection in an emerging economy is influenced by situational contingencies at four levels: nation, industry, firm, and project. Analysis of data collected from China suggests that the joint venture is preferred when perceived governmental intervention or environmental uncertainty is high or host country experience is low. The wholly-owned entry mode is preferred when intellectual property rights are not well protected, the number of firms in the industry is growing fast, the need for global integration is high, or the project is located in an open economic region. The importance of these multilevel determinants requires simultaneous and inseparable considerations of the risk, return, control, and resource effects of the entry mode decision. This necessitates a theoretical integration of multiple perspectives such as transaction cost, the eclectic paradigm, bargaining power, and organizational capability.
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B. Elango4
Estimated H-index: 4
(ISU: Illinois State University),
Karthik Dhandapani2
Estimated H-index: 2
(Indian Institute of Management Tiruchirappalli),
Claudio Giachetti8
Estimated H-index: 8
(Ca' Foscari University of Venice)
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Desislava Dikova10
Estimated H-index: 10
(WU: Vienna University of Economics and Business),
Andrei Panibratov8
Estimated H-index: 8
(SPbU: Saint Petersburg State University)
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Estimated H-index: 1
+ 2 AuthorsQuan-Hoang Vuong12
Estimated H-index: 12
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Estimated H-index: 10
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+ 2 AuthorsGuido Nassimbeni22
Estimated H-index: 22
(University of Udine)
Abstract The Entry Mode (EM) choice is a fundamental issue in reshoring initiatives. Despite several authors have studied the determinants of offshoring EM, no study has investigated so far the factors affecting the reshoring EM and its relation with the offshoring EM. The purpose of this paper is to examine which factors influence entry mode choice in reshoring initiatives. We develop a conceptual framework that explains the reshoring EM in terms of country-, industry-, firm- and project-specif...
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Michael Nippa1
Estimated H-index: 1
(Free University of Bozen-Bolzano),
Jeffrey J. Reuer41
Estimated H-index: 41
(CU: University of Colorado Boulder)
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Fang-Yi Lo1
Estimated H-index: 1
(FCU: Feng Chia University),
Kun-Huang Huarng1
Estimated H-index: 1
(National Taipei University of Business),
Andrea Rey-Martí4
Estimated H-index: 4
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Published on Apr 26, 2019
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Estimated H-index: 14
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Estimated H-index: 12
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+ 1 AuthorsSi Miao (SWUST: Southwest University of Science and Technology)
Purpose The conventional wisdom suggests that the lack of prior host country-specific experience and a higher institutional distance deter multinational enterprises (MNEs) from entering a foreign country. However, past studies report that Chinese MNEs show an unconventional risk-taking behavior choosing foreign locations, where they have no prior experience or there is an increased institutional distance. Drawing on the institutional theory, the purpose of this paper is to argue that Chinese Gov...
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Estimated H-index: 2
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Estimated H-index: 59
(UWO: University of Western Ontario)
Corporate anti-corruption initiatives can make a substantial contribution towards curtailing corruption and advancing efforts to achieve the United Nations’ Sustainable Development Goals. However, researchers have observed that underdeveloped assumptions with respect to the conceptualization of corruption and how firms respond to corruption risk impeding the efficacy of anti-corruption programs. We investigate the relationship between the perceived level of corruption in foreign host countries a...
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