Intra- and Inter-organizational Imitative Behavior: Institutional Influences on Japanese Firms' Entry Mode Choice

Published on Mar 1, 2002in Journal of International Business Studies7.72
· DOI :10.1057/palgrave.jibs.8491003
Jane W. Lu19
Estimated H-index: 19
(NUS: National University of Singapore)
This paper compares the predictions of transaction cost and institutional theories in an empirical study of the entry mode choice for 1,194 Japanese foreign subsidiaries. The findings indicate the institutional model adds significant explanatory power over and above the predictions of the transaction cost model. Using the concepts of frequency-based, trait-based and outcome-based imitation, I find support for institutional isomorphism, as later entrants tended to follow the entry mode patterns established by earlier entrants. Isomorphic behavior was also present within a firm, as firms exhibited consistency in entry mode choices across time. Further, a firm's investment experience moderated institutional influences on entry mode choice.
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  • Citations (335)
Published on Jun 1, 2005in Journal of Development Economics2.85
Theo S. Eicher26
Estimated H-index: 26
(LMU: Ludwig Maximilian University of Munich),
Jong Woo Kang1
Estimated H-index: 1
We examine multinationals’ optimal entry modes into foreign markets as a function of market size, FDI fixed costs, tariffs and transport costs. Our results highlight why large countries are more likely to attract acquisition investment, while intermediate-sized countries may be served predominantly through trade, even in the presence of high tariffs. Small countries are most likely to experience either FDI or no entry. We also show how these results vary with the competition intensity in the hos...
Published on Jun 1, 2000in Academy of Management Journal7.19
Takehiko Isobe10
Estimated H-index: 10
(University of Marketing and Distribution Sciences),
Shige Makino24
Estimated H-index: 24
(CUHK: The Chinese University of Hong Kong),
David B. Montgomery31
Estimated H-index: 31
(Stanford University)
This study examined whether early movers and technology leaders attained superior performance in emerging economic regions. We assessed the determinants and performance consequences of two key aspe...
Published on Mar 1, 2000in Economics and Politics1.04
Witold J. Henisz31
Estimated H-index: 31
(UPenn: University of Pennsylvania)
This article forges an explicit link between an objective measure of political constraints and variation in cross-national growth rates. It derives a new measure of political constraints from a simple spatial model of political interaction that incorporates information on the number of independent branches of government with veto power and the distribution of preferences across and within those branches. The derived variable is found to have a statistically and economically significant impact on...
Published on Dec 1, 1998in Journal of International Business Studies7.72
Shige Makino24
Estimated H-index: 24
(CUHK: The Chinese University of Hong Kong),
Paul W. Beamish59
Estimated H-index: 59
(UWO: University of Western Ontario)
The international joint venture (JV) literature has focused on two parent JVs formed between one foreign and one local firm. Yet, other types of JVs exist. This paper identifies four distinct forms of JVs based on the JV partners′ nationality and equity affiliation. These are: (i) JVs that are formed between affiliated home-country based firms; (ii) JVs that are formed between unaffiliated home-country based firmsl; (iii) JVs that are formed between home-country based and local firms; and (iv) J...
Published on Apr 1, 1997in Academy of Management Review10.63
Peter W. Roberts2
Estimated H-index: 2
(UNSW: University of New South Wales),
Royston Greenwood43
Estimated H-index: 43
(U of A: University of Alberta)
Transaction cost and institutional theories are integrated in order to enhance understanding of the process by which entities adopt new organizational designs. By grafting cognitive and institutional constraints into the comparative-efficiency framework favored by transaction cost theorists, theorists using the constrained-efficiency framework demonstrate both how efficiency-seeking organizations may be biased in favor of current designs and those that are legitimated within their institutional ...
Published on Dec 1, 1996in Journal of International Business Studies7.72
Shige Makino24
Estimated H-index: 24
(CUHK: The Chinese University of Hong Kong),
Andrew Delios37
Estimated H-index: 37
(UWO: University of Western Ontario)
Foreign firms in host country environments frequently face location-based disadvantages. This study proposes three means (channels) of overcoming local knowledge disadvantages. Based on a sample of 558 Japanese joint ventures (JVs) located in Southeast and East Asia, we find that partnering with local firms (the first channel) can be a primary strategy for accessing local knowledge and improving JV performance. JV experience in the host country (the second channel) also mitigates local knowledge...
Published on Dec 1, 1997in Administrative Science Quarterly8.02
W. Richard Scott40
Estimated H-index: 40
Introduction Early Institutionalists Institutional Theory and Organizations Constructing an Analytic Framework I Three Pillars of Institutions Constructing an Analytic Framework II Content, Agency, Carriers and Levels Institutional Construction, Maintenance and Diffusion Institutional Processes Affecting Societal Systems, Organizational Fields, and Organizational Populations Institutional Processes Affecting Organizational Structure and Performance Institutional Change Looking Back, Looking Forw...
Published on Dec 1, 1993in Administrative Science Quarterly8.02
Heather A. Haveman22
Estimated H-index: 22
Follow the Leader: Mimetic Isomorphism and Entry Into New Markets Heather A. Haveman Administrative Science Quarterly, Volume 38, Issue 4 (Dec., 1993), 593-627. Stable URL: http://links.j—8392%28199312%2938%3A4%3C593%3AFTLMIA%3E2.0.CO%3B2—V Your use of the JSTOR archive indicates your acceptance of J STOR’s Terms and Conditions of Use, available at JSTOR’s Terms and Conditions of Use provides, in part, that unless you have obtained p...
Published on Feb 1, 1993in Academy of Management Journal7.19
Lawton R. Burns31
Estimated H-index: 31
(UA: University of Arizona),
Douglas R. Wholey25
Estimated H-index: 25
(CMU: Carnegie Mellon University)
Organizational design theorists argue that organizations adopt matrix (departmentalized) structures for technical reasons, to solve problems of internal coordination and information processing. Research on interorganizational networks suggests that organizations adopt new structures because of mimetic forces and normative pressures. We examined the effects of both sets of factors on the adoption of matrix management in a group of hospitals. Multivariate analyses revealed that matrix adoption is ...
Published on Jul 1, 1988in Strategic Management Journal5.57
Jean-François Hennart41
Estimated H-index: 41
(UPenn: University of Pennsylvania)
This paper presents a transaction costs theory of equity joint ventures. It distinguishes between ‘scale’ and ‘link’ JVs. Scale JVs arise when parents seek to internalize a failing market, but indivisibilities due to scale or scope economies make full ownership of the relevant assets inefficient. Link JVs result from the simultaneous failing of the markets for the services of two or more assets whenever these assets are firm‐specific public goods, and acquisition of the firm holding them would e...
Cited By335
Published on Sep 5, 2018in The Multinational Business Review
Yoo Jung Ha3
Estimated H-index: 3
(Ebor: University of York),
Yingqi Wei20
Estimated H-index: 20
(University of Leeds)
Purpose Corporate environmental innovation (CEI) is a proactive type of response to increasing public scrutiny regarding firms’ environmental performance. While past studies have overwhelmingly focused on coercive mechanisms and assumed a closed national institutional field, less attention has been given to non-coercive and transnational inter-firm mimetic mechanisms. This paper aims to investigate the joint effect of coercive isomorphic mechanisms from domestic institutions and mimetic isomorph...
Published on Nov 1, 2018in Journal of Purchasing and Supply Management3.09
Li Wan (University of Udine), Guido Orzes10
Estimated H-index: 10
(Free University of Bozen-Bolzano)
+ 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...
Published on Jun 1, 2019in Organization Studies3.54
Heechun Kim1
Estimated H-index: 1
(U of C: University of Calgary),
Robert E. Hoskisson58
Estimated H-index: 58
(Rice University),
J. Daniel Zyung1
Estimated H-index: 1
(SMU: Southern Methodist University)
We theorize how family and non-family CEOs in family multinational enterprises (FMNEs) divest foreign subsidiaries. In doing so, we propose an integrative framework that supplements the socioemotional wealth perspective by introducing the notion of socioemotional favoritism. Using this framework, we hypothesize and find that family CEOs are less likely to divest than non-family CEOs by analyzing 161 Korean manufacturing FMNEs between 1998 and 2003. We also find that family CEOs avoid divesting f...
Published on Apr 26, 2019
Diego Quer14
Estimated H-index: 14
(University of Alicante),
Laura Rienda12
Estimated H-index: 12
(University of Alicante)
+ 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...
Published on Mar 11, 2019in European Business Review
Anders Pehrsson11
Estimated H-index: 11
(LNU: Linnaeus University)
Purpose Business relatedness is important in international diversification because it enables a firm’s transfer of resources to business units operating in foreign markets. The purpose is to develop a conceptual model based on a review of major contributions of studies regarding the relatedness of subsidiaries, joint ventures, or any other foreign unit. Design/methodology/approach The paper examines theory bases, the relatedness construct, data issues, and key achievements of previous studies. D...
Hailiang Zou6
Estimated H-index: 6
(SHU: Shanghai University),
Xuemei Xie6
Estimated H-index: 6
(SHU: Shanghai University)
+ 1 AuthorsMengyu Yang1
Estimated H-index: 1
(SHU: Shanghai University)
Published on Jan 1, 2019
This chapter uses an international opportunity identification-based approach to understand specific foreign market entry mode choices of family firms. We employ an exploratory case study design based on ten German family firms’ entry mode choices for China and India. Our main findings suggest that for first-time entries, the type of international opportunity identification—accidental or purposeful—influences foreign market entry mode choices. Family firms that accidentally discover international...
Published on Dec 1, 2018in Journal of World Business5.79
Jean-Luc Arregle9
Estimated H-index: 9
(EMLYON Business School),
Toyah L. Miller14
Estimated H-index: 14
(UTD: University of Texas at Dallas)
+ 1 AuthorsPaul W. Beamish59
Estimated H-index: 59
(UWO: University of Western Ontario)
Abstract Multinational enterprises (MNEs) use the regional aggregation and integration of their foreign direct investments as an important part of their internationalization. Internationalization decisions are integrated at the region level; however, little work has focused on explaining the extent of this regional integration. We develop theoretical arguments and test new hypotheses about MNEs’ general international experience and international geographic scope (i.e., institutional diversity an...
Published on Dec 1, 2018in International Business Review3.64
Francisco Mas-Ruiz15
Estimated H-index: 15
(University of Alicante),
Enar Ruiz-Conde4
Estimated H-index: 4
(University of Alicante),
Aurora Calderón-Martínez3
Estimated H-index: 3
(University of Alicante)
This study examines imitation behavior in the foreign entry mode of the members of a strategic group within the industry. Following the institutionalist perspective, we argue that legitimating actors (trade associations, training institutions and investors, among others) can exert pressure on strategic group members to conform to institutionalized organizational practices and structures. We hypothesize that a company’s choice of foreign entry mode is determined by the previous choices of other c...