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Do We Really Need More Entry Mode Studies

Published on Jan 1, 2013in Journal of International Business Studies7.72
· DOI :10.1057/jibs.2012.24
J. Myles Shaver26
Estimated H-index: 26
(UMN: University of Minnesota)
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Abstract
This commentary's title is not meant to be a rhetorical question. In congratulating Brouthers (2002) for the JIBS Decade Award, we have an opportunity to assess where we are within this field of inquiry, and what is our trajectory. I believe that we have accomplished a lot in this area of study. Nevertheless, I am concerned about its current trajectory, so much so that I think we should seriously question whether we need more entry mode studies – especially if we are going to get more of the same.
  • References (15)
  • Citations (60)
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References15
Newest
Published on Jun 1, 2015in International Business Review3.64
Jean-François Hennart41
Estimated H-index: 41
,
Hsia Hua Sheng7
Estimated H-index: 7
,
Gustavo Pimenta1
Estimated H-index: 1
The theory of entry mode choice has modeled that choice as solely determined by the foreign investor. Hennart's bundling model, on the other hand, argues that foreign entry into a host market involves the bundling of intangibles contributed by the foreign investor with local complementary inputs contributed by local actors, and that the chosen mode of entry will be the one that maximizes the joint gains of both parties. That chosen mode will depend on the relative efficiency of the various marke...
Published on Dec 1, 2014in International Business Review3.64
Katharina Laufs2
Estimated H-index: 2
(HHU: University of Düsseldorf),
Christian Schwens17
Estimated H-index: 17
(HHU: University of Düsseldorf)
Despite significant differences between small and medium-sized enterprises (SMEs) and large multinational enterprises (MNEs), the majority of extant foreign market entry mode choice literature has focused on MNEs. The current state of knowledge regarding SME foreign market entry mode choice is equivocal. The present paper reviews the current state of SME foreign market entry mode choice literature and maps future research directions. To this end, we systematically analyze 33 relevant journal art...
Published on Jan 1, 2013
Xavier Martin15
Estimated H-index: 15
,
K.F. van den Oever1
Estimated H-index: 1
We examine patterns and changes in the use of various theoretical perspectives, and in the approach to testing individual or combinations of theories, within the field of international strategy which constitutes one of the major areas of international business research. We conduct a systematic bibliometric analysis of 22 years’ worth of empirical papers. We generate tabular evidence and introduce the use of network graphing methodology to report and analyze the co-occurrence of theories. We find...
Published on Jan 1, 2013in Journal of International Business Studies7.72
Xavier Martin15
Estimated H-index: 15
(Tilburg University)
Several theoretical and empirical developments in the literature on foreign entry mode and performance, and on (international) strategy more generally, were influenced or prefigured by Brouthers’ (2002) JIBS Decade Award winning paper. Regarding theory, Brouthers is an archetype of the integration of transaction cost and institutional perspectives. I argue that it is also relevant to the growing literature that aims at synthesizing these and other perspectives. Methodologically, Brouthers (2002)...
Published on Jan 1, 2013in Journal of International Business Studies7.72
Keith D. Brouthers30
Estimated H-index: 30
(UG: University of Groningen)
For several decades researchers have focused on the entry mode decision because it is critically important for firms expanding abroad. Despite this attention we still lack clear tools to help managers make effective entry decisions. In this paper I review past research exploring transaction cost and institutional perspectives of mode choice, provide a critique of this literature, and generate suggestions to move our knowledge forward. In addition, I review the limited research exploring entry mo...
Published on Dec 1, 2009in Journal of International Business Studies7.72
Jean-François Hennart41
Estimated H-index: 41
(Tilburg University)
Both Anderson and Gatignon and the Uppsala internationalization model see the initial mode of foreign market entry and subsequent modes of operation as unilaterally determined by multinational enterprises (MNEs) arbitraging control and risk and increasing their commitment as they gain experience in the target market. OLI and internalization models do recognize that foreign market entry requires the bundling of MNE and complementary local assets, which they call location or country-specific advan...
Published on Jul 1, 2006in Journal of International Business Studies7.72
J. Myles Shaver26
Estimated H-index: 26
(UMN: University of Minnesota)
Journal of International Business Studies (2006), doi: I0. 1057/palgrave.jibs.8400217 In my role of Department Editor at JIBS, I have seen over 100 empirical manuscripts. Overall, I have been impressed with the degree to which tests match the theory and the choice of statistical technique given the nature of the data. However, there is a systematic behavior that I would encourage us as a field to remedy. We should reconsider how we interpret empirical findings in our work. The current norm for i...
Published on Jul 1, 2003in Journal of International Business Studies7.72
Xavier Martin15
Estimated H-index: 15
(NYU: New York University),
Robert Salomon17
Estimated H-index: 17
(SC: University of Southern California)
This study updates and extends research on foreign entry modes by examining the impacts of knowledge transfer capacity and knowledge tacitness. Research on international corporate expansion has long emphasized that deploying intangible knowledge-based assets is required for successful international expansion. More recently, research from a ‘knowledge-based’ perspective has addressed the role of tacitness in constraining a firm's ability to transfer knowledge internationally. We combine these per...
Published on Jun 1, 2002in Journal of International Business Studies7.72
Keith D. Brouthers30
Estimated H-index: 30
(UEL: University of East London)
In this study, we examine foreign market entry mode choice and firm performance for a sample of European Union firms. Examining both financial and non-financial performance measures, we attempt to determine if firms that select their entry mode based on transaction cost, institutional context, and cultural context variables perform better than firms that make other mode choices. We found that mode choice did matter. Firms whose mode choice could be predicted by the extended transaction cost mode...
Published on Apr 1, 1998in Management Science4.22
Anton J. Kleywegt1
Estimated H-index: 1
(NYU: New York University),
Jason D. Papastavrou13
Estimated H-index: 13
,
J. Myles Shaver26
Estimated H-index: 26
(NYU: New York University)
Firms choose strategies based on their attributes and industry conditions; therefore, strategy choice is endogenous and self-selected. Empirical models that do not account for this and regress performance measures on strategy choice variables are potentially misspecified and their conclusions incorrect. I highlight how self-selection on hard-to-measure or unobservable characteristics can bias strategy performance estimates and recommend an econometric technique that has been developed to account...
Cited By60
Newest
Published on May 15, 2019in Journal of International Business Studies7.72
Birgitte Grogaard5
Estimated H-index: 5
(BI Norwegian Business School),
Asmund Rygh4
Estimated H-index: 4
,
Gabriel R.G. Benito24
Estimated H-index: 24
(BI Norwegian Business School)
We use internalization theory to analyze the establishment and entry mode decisions of state-owned (SOE) and privately owned (POE) enterprises. We enrich internalization theory by building on insights from economic theory of corporate governance and taking into account particular characteristics of SOEs such as non-economic motivations, long-term orientation, and different risk preferences. We examine foreign entries over a 10-year period in the Canadian oil and gas industry. This single-country...
Published on Mar 1, 2018in Journal of Business Research4.03
Filippo Albertoni2
Estimated H-index: 2
(Polytechnic University of Milan),
Stefano Elia9
Estimated H-index: 9
(Polytechnic University of Milan),
Lucia Piscitello17
Estimated H-index: 17
(Polytechnic University of Milan)
Abstract Experience, meant as the repetition of the same action, is considered a predictor of the entry mode choice in foreign markets because it allows reducing uncertainty. However, repetition does not necessarily increase the expected performance, depending on the learning stemming from previous experiences. Focusing on offshoring decisions, namely the choice between captive and outsourcing entry mode, we distinguish between the inertial repetition of routines vs. the mindful repetition of pr...
Published on Jan 30, 2019in Journal of International Business Studies7.72
Sea Jin Chang25
Estimated H-index: 25
(KAIST)
This study examines the decision to convert international joint ventures to either foreign or local wholly owned entities and the subsequent impact on performance from the perspective of incomplete contract theory. With China’s relaxation of the joint venture requirement, foreign partners are more likely to take full control and thereby improve performance in provinces with fewer institutional barriers and industries with high intangible asset intensity, while local partners are more likely to d...
Published on 2019in European Management Journal2.98
Emna Moalla1
Estimated H-index: 1
,
Ulrike Mayrhofer (University of Nice Sophia Antipolis)
Abstract The objective of this article is to examine the relevant dimensions of distance for foreign market entry mode choice. Based on a sample of 203 interfirm linkages formed by French multinationals with partners across the world, we analyze the impact of four dimensions of distance on the choice between cooperative alliances and mergers-acquisitions. The findings indicate that administrative and economic distance have a significant influence on market entry mode choice, whereas the impact o...
Published on 2019in Sustainability2.59
Foreign market entry mode research has been a popular area of study. However, a clear agreement between the usage of conventional constructs and their impact on a firm’s entry mode choice has not yet been found. This paper focuses on how, depending on the type of subsidiary that is established, multinational corporations (MNCs) in the manufacturing industry use different foreign market entry strategies. Previous research either treated types of subsidiaries synonymously or investigated them sepa...
ABSTRACTThis study aims to examine how technology interdependence and three environmental variables, namely political instability, technological uncertainty and Confucian dynamism, in the host country collectively influence Taiwanese technological multinational company’s (MNC) entry mode choice between joint venture (JV) and wholly owned subsidiary (WOS). Grounded on theories of transaction cost economies and organisational design, this study hypothesises a positive technology interdependence–WO...
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 International Business Review3.64
Chang Hoon Oh21
Estimated H-index: 21
(SFU: Simon Fraser University),
Minyoung Kim7
Estimated H-index: 7
(KU: University of Kansas),
Jiyoung Shin1
Estimated H-index: 1
(UG: University of Groningen)
Abstract In this paper, we investigate how firms’ international expansion paths and their geographic scope differ across industries, with longitudinal data from 1999 to 2008 for Fortune Global 500 firms. We first classify firms into three generic paths of international expansion based on the industry characteristics (i.e., institution-driven, capability-driven, and linkage-driven ). We then investigate the differences in three generic international expansion paths and geographic scope with descr...
Published on Jun 1, 2019in Journal of International Business Studies7.72
Michael Nippa1
Estimated H-index: 1
(Free University of Bozen-Bolzano),
Jeffrey J. Reuer41
Estimated H-index: 41
(CU: University of Colorado Boulder)
International joint ventures (IJVs) are an important type of international strategic alliance (ISA) and have been studied by scholars for decades, resulting in a plethora of empirical studies, publications, and reviews, yet an inadequate accumulation of knowledge exists, as a closer look reveals. Much more than providing a summary and critical assessment of past contributions, this paper develops an expansive research agenda based upon a deep understanding of past research and comprehensive fram...