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Competition at home and foreign market entry timing

Published on Apr 12, 2019in The Multinational Business Review
· DOI :10.1108/MBR-10-2017-0070
K. Skylar Powell5
Estimated H-index: 5
(WWU: Western Washington University)
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Abstract
Purpose Research has identified inverted U-shaped relationships between domestic competitive position, often cast in terms of home-country market share or relative profitability, and speed of entry into a foreign market. However, in some industries, firms may be especially attentive and responsive to competition between firms in their local-home market (i.e. sub-national). Hence, this study aims to explore the effect of local-home market competitive intensity on the relationship between a firm’s overall competitive position and speed of entry into a foreign market. Design/methodology/approach Data from 114 large US corporate law firms from 1992 through 2008 were used for Cox proportional-hazards regression models to estimate the moderating effect of local-home market competitive intensity on the relationship between relative profitability at the national level and speed of entry (i.e. hazard rate) into China. Findings Less-dominant firms from highly competitive local-home markets entered China more quickly than less-dominant firms from less-competitive local-home markets. In addition, first-movers from highly competitive local-home markets tended to have more advantageous competitive profiles, as reflected in profitability, than first-movers from less-competitive local-home markets. Originality/value This research explores an important contingency in the relationship between a firm’s competitive position at home and timing of entry into a foreign market. Additionally, the results suggest that first-movers from less-competitive local-home markets may face immediate competition from better-positioned first-movers from more competitive locations within the same home market when they enter new markets.
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  • Citations (1)
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References75
Newest
Published on Sep 1, 2018in European Management Review1.60
Claudio Giachetti8
Estimated H-index: 8
(Ca' Foscari University of Venice),
Salvatore Torrisi20
Estimated H-index: 20
(UNIBO: University of Bologna)
Published on Jan 1, 2018in Journal of Business Research4.03
K. Skylar Powell5
Estimated H-index: 5
(WWU: Western Washington University),
Eunah Lim2
Estimated H-index: 2
(ISCTE-IUL: ISCTE – University Institute of Lisbon)
Transaction cost and internalization theory research has demonstrated that ‘misfit’ firms, which deviate from firm-specific optimal levels of multinationality, experience performance decreases. However, we do not know if these firms subsequently adjust their multinational footprints to improve performance. This analysis attempts to fill this gap in the literature, using data in the context of large US law firms from 2003 through 2015. Results indicate that firms with insufficient multinationalit...
Published on Sep 1, 2017in Strategic Management Journal5.57
David Tan5
Estimated H-index: 5
(UW: University of Washington),
Christopher I. Rider8
Estimated H-index: 8
(Georgetown University)
Research summary: Because employees can provide a firm with human capital advantages over competitors, firms invest considerably in employee recruiting and retention. Departing from the retention imperative of strategic human capital management, we propose that certain employee departures can enhance a firm's competitiveness in the labor market. Specifically, increased rates of career-advancing departures by a firm's employees can signal to potential future employees that the firm offers a prest...
Published on Jun 7, 2017in Journal of Strategic Marketing
Dean C.H. Wilkie4
Estimated H-index: 4
(UNSW: University of New South Wales),
Lester W. Johnson29
Estimated H-index: 29
(Swinburne University of Technology)
AbstractOrder of entry research has stressed the importance of a superior marketing mix effort relative to the pioneer if a late entrant is to overcome the order of entry effect. Several researchers have argued, but have not demonstrated, that a superior marketing mix effort may even help a late entrant avoid the order of entry effect. If this is proven to be the case, a double jeopardy trend may exist in that late entrants that have a superior (inferior) marketing mix effort not only gain (lose...
Published on Jun 1, 2017in International Business Review3.64
Chia-Wen Hsu7
Estimated H-index: 7
(CCU: National Chung Cheng University),
Homin Chen11
Estimated H-index: 11
(NTU: National Taiwan University),
D’Arcy Caskey1
Estimated H-index: 1
(FCU: Feng Chia University)
This study examines whether local conditions (i.e., location-bound advantages and local density) are significantly related to foreign subsidiary performance in an emerging market. We also explore the moderating effect of entry timing on the relationship between local conditions and foreign subsidiary performance. Analysis of a longitudinal dataset of 357 foreign subsidiaries in an emerging market (the People’s Republic of China) from 2006 to 2012 provides evidence that location-bound advantage i...
Published on May 1, 2017in Journal of International Business Studies7.72
Yanto Chandra10
Estimated H-index: 10
(CityU: City University of Hong Kong)
Abstract This article investigates two important research gaps in international business (IB): how entrepreneurs evaluate international entrepreneurial opportunities (IEOs) and the role of time in the evaluation process. Drawing on the literature on decision-making models and the philosophical foundation of opportunity, this study employs Gioia’s methodology and content analysis to examine how the founders of 15 early-internationalizing firms evaluated IEOs in the early- and late-stage of intern...
Published on Apr 1, 2017in Management International Review2.69
Alexander T. Mohr15
Estimated H-index: 15
(UKC: University of Kent),
Georgios Batsakis5
Estimated H-index: 5
(Brunel University London)
Existing research is divided on whether firms that rapidly expand their overseas operations perform better than firms that internationalize slowly. Drawing on Penrose’s theory of the growth of the firm, we argue that the positive effects of rapid internationalization give way to negative effects with increasing internationalization speed, leading to an inverted U-shaped association between internationalization speed and firm performance. We analyze the market-seeking expansion of 110 retailers o...
Published on Jan 1, 2017in Journal of Business Research4.03
K. Skylar Powell5
Estimated H-index: 5
(WWU: Western Washington University),
Eunah Lim2
Estimated H-index: 2
(ISCTE-IUL: ISCTE – University Institute of Lisbon)
In this analysis, we seek to contribute to the growing body of literature exploring moderators of cross-national differences and foreign subsidiary ownership structure relationships, by developing the argument that cultural distance and majority-owned foreign subsidiary relationships will be positively moderated if a subsidiary serves a manufacturing motive, as opposed to a market-seeking motive. Additionally, we argue that relationships between increasingly greater levels of host country techni...
Published on Dec 1, 2016in Management International Review2.69
Thomas Hutzschenreuter16
Estimated H-index: 16
(TUM: Technische Universität München),
Ingo Kleindienst7
Estimated H-index: 7
(AU: Aarhus University)
+ 1 AuthorsMartin Hammes1
Estimated H-index: 1
(WHU - Otto Beisheim School of Management)
To date, surprisingly little research has been devoted to speed, which is arguably one of the most important time-based dimensions of a firm’s internationalization process. We address this gap, focusing on the learning processes during internationalization of established MNEs’ new business units, in particular their accumulation of business knowledge and internationalization knowledge and the temporal order of their knowledge acquisition. We argue that new business units benefit from the corpora...
Published on Oct 1, 2016in Management International Review2.69
Matthias Schu2
Estimated H-index: 2
(University of Fribourg),
Dirk Morschett21
Estimated H-index: 21
(University of Fribourg),
Bernhard Swoboda23
Estimated H-index: 23
(University of Trier)
Numerous examples of online retailers that have internationalized shortly after their foundation indicate that they internationalize faster than and different from traditional brick-and-mortar retailers. This paper identifies and analyzes various influence factors on internationalization speed of online retailers and their impact on individual internationalization steps. Grounded in the resource-based view, the paper examines the effects of imitability of an online shop, the presence of venture ...
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Published on Sep 1, 2019in Journal of Business Research4.03
Jean D. Kabongo8
Estimated H-index: 8
(University of South Florida Sarasota–Manatee),
John O. Okpara12
Estimated H-index: 12
(BU: Bloomsburg University of Pennsylvania)
Abstract This study investigates the factors that influence the timing and speed of internationalization, using data from corporate annual reports, websites, and media from 23 top banks in Africa, over the period ranging from 2010 to 2018. The findings suggest that entry timing is influenced by a firm's ownership structure and board members' experience and diversity. The findings also show three factors that increase the speed of internationalization: (1) learning from observing trends in the ba...
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