Foreign Market Entry and Host Country Welfare: A Theoretical Analysis

2003 ◽  
Author(s):  
Arijit Mukherjee
Keyword(s):  
Theoretical Analysis ◽  
Host Country ◽  
Market Entry ◽  
Foreign Market ◽  
Foreign Market Entry

CEO characteristics and SME foreign market entry mode choice

2016 ◽  
Vol 33 (2) ◽  
pp. 246-275 ◽  
Author(s):  
Katharina Laufs ◽  
Michael Bembom ◽  
Christian Schwens
Keyword(s):  
Host Country ◽  
Market Entry ◽  
Mode Choice ◽  
Entry Mode ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Content Type ◽  
Entry Mode Choice ◽  
Foreign Market Entry Mode ◽  
Ceo Characteristics

Purpose – Using arguments from the upper echelons perspective this paper aims to examine the impact of CEO characteristics on small and medium-sized enterprises’ (SMEs’) equity foreign market entry mode choice and how these associations are jointly moderated by geographic experience of the firm and host-country political risk. Design/methodology/approach – The empirical analysis draws on data gathered from German SMEs testing triple-interaction effects between CEO’s age, firm tenure and international experience, geographic experience of the firm (organizational level), and host-country political risk (environmental level). Findings – Empirical findings validate that the influence of CEO’s age and firm tenure on SME foreign market entry mode choice varies by managers’ level of managerial discretion (i.e. latitude of action) as determined by the SME’s geographic experience and the level of political risks prevailing in the foreign market. Practical implications – Empirical findings help SME owners and managers to understand how CEO’s age and firm tenure are related with individual’s risk-taking behavior and information-processing demands and how these contingencies vary by the context in which the individual CEO is nested. Originality/value – This study contributes to the growing body of literature focussing on SME foreign market entry mode choice by emphasizing the important role of CEOs in the decision to internationalize. More specific, this study contributes by an examination of the interactive effect of CEO’s age, firm tenure and international experience, geographic experience of the firm and host-country political risk and, therefore, emphasizes the context and boundary conditions under which the association between CEO characteristics and foreign market entry mode choice is more or less pronounced.

scholarly journals Internationalisation processes: an analytical framework

2003 ◽  
Vol 7 (2) ◽  
pp. 137-156 ◽  
Author(s):  
Sérgio Fernando Loureiro Rezende
Keyword(s):  
Host Country ◽  
Market Entry ◽  
Empirical Studies ◽  
Entry Mode ◽  
Institutional Arrangement ◽  
Foreign Market ◽  
Analytical Framework ◽  
Foreign Market Entry ◽  
Foreign Markets ◽  
Subsidiary Development

In this article we propose a framework for analysing internationalisation processes, manifested through a sequence of servicing modes. A servicing turn is, in turn, the institutional arrangement whereby firms operate in foreign markets. The framework borrows conceptual notions from the literature on foreign market entry, internationalisation and subsidiary development. Three implications for empirical studies are subsequently suggested. First, it is argued that internationalisation processes should be analysed in light of intra and inter-organisational relationships embedded in distinct spatial and temporal contexts. Secondly, the framework takes into account not only incremental but also discontinuous internationalisation processes. Thirdly, it is proposed that internationalisation processes are endless phenomena and, therefore, should consider sequences of servicing modes that take place in the foreign market where the entry mode is originally embedded as well as in foreign markets reached from the initial host country.

Revisiting foreign market entry motivations: the case of Korean commercial banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Young Hoon Jung ◽  
Zhu Zhu ◽  
Huy Will Nguyen
Keyword(s):  
Host Country ◽  
Commercial Banks ◽  
Market Entry ◽  
Foreign Market ◽  
Institutional Distance ◽  
Foreign Market Entry ◽  
Sociocultural Factors ◽  
Power Imbalance ◽  
Content Type ◽  
Profit Potential

PurposeThis study examines what motivates firms to go and remain abroad despite uncertain profit potential. In a departure from probing traditional market-seeking, profit-driven motives, the authors explore how domestically driven, sociocultural motivations may shape the foreign market entry decisions of Korean commercial banks (KCBs). The authors argue that, due to the power imbalance between KCBs and their chaebol clients within the historical and cultural contexts of their relationships, KCBs' foreign market entries may depend more on their clients' presence in these markets than on their profit potential.Design/methodology/approachThe authors focus on the foreign market entries of KCBs and their client firms. Using the data of 8 KCBs and their client firms belonging to the 60 business groups (chaebols) of Korea, the authors analyze 6,577 observations involving the dyadic relationship between a KCB and its client firm in 15 host countries from 2005 to 2014.FindingsThe authors find that the number of clients' subsidiaries operating in foreign markets may increase the likelihood of KCBs entering these markets. Moreover, when KCBs earn more domestic profit from client firms, the potential Korean market in the host country is greater, and the institutional distance between the host country and Korea is smaller.Practical implicationsIn addition to the critical role of a bank-centered financing system in advancing a developing country and its firms, the authors’ findings suggest that firms should pay attention to the local diaspora and the institutional distance between the host and home countries in order to manage power-imbalanced relationships and make them sustainable.Originality/valueThe study contributes to the literature on foreign market entry by demonstrating how the home country's sociocultural factors may worsen the power imbalance, thereby pushing firms to make seemingly irrational decisions to go and stay abroad. That is, KCBs' foreign operations may be a way of seeking relational benefits with client firms, which would serve as a source of long-term domestic market profits. The authors’ findings thus highlight the need to consider how sociocultural factors may also shape firms' decision-making in their international business.

Management of foreign market entry

1992 ◽  
Vol 1 (3) ◽  
pp. 2 ◽  
Author(s):  
Jan Johanson ◽  
Jan-Erik Vahlne
Keyword(s):  
Market Entry ◽  
Foreign Market ◽  
Foreign Market Entry

Understanding legitimacy in the foreign market entry process

2009 ◽  
Vol 2 (4) ◽  
pp. 453 ◽  
Author(s):  
Sabine Gebert Persson ◽  
Eniko Kaptalan Nagy
Keyword(s):  
Market Entry ◽  
Foreign Market ◽  
Foreign Market Entry

Uberization in Paris – the issue of trust between a digital platform and digital workers

2019 ◽  
Vol 15 (1) ◽  
pp. 20-41 ◽  
Author(s):  
Robert Wentrup ◽  
H. Richard Nakamura ◽  
Patrik Ström
Keyword(s):  
International Business ◽  
Market Entry ◽  
Business Performance ◽  
Qualitative Methodology ◽  
Foreign Market ◽  
General Assumption ◽  
Foreign Market Entry ◽  
Content Type ◽  
Digital Platforms ◽  
Digital Platform

Purpose Using the lens of Uber’s digital workers in Paris, the purpose of this paper is to investigate how the trust-building mechanism is constructed between a digital platform and its digital workers in a foreign market entry. Design/methodology/approach This is a case study based on empirical data from in-depth interviews with 35 Uber drivers. A cross-disciplinary literature framework from mainly international business and internet geography theory and a reflexive qualitative methodology are applied. Findings Results show that the relationship between the digital platform and the digital workers is characterized by mistrust and suffers from decreasing commitment levels soon after market entry. Uber mitigates its mistrust via control and scarce mechanisms. The digital drivers’ “illusionary freedom”, a state in which they feel they can log on and log off at any time, enables the digital platform to gradually lower its commitment. The authors find that the mistrust does not seem to hamper the digital platform’s business performance. Research limitations/implications The paper mainly covers the digital workers’ perspective and the case of Uber’s market entry in Paris. Social implications This paper implies that digitally conveyed control seems to come at the cost of lowered human trust. Given the pace at which digital control systems are permeating society, this could eventually lower the whole societal trust level. Originality/value The authors criticize incumbent international business theory for not being sufficiently able to explain a contemporary digital business logic and the authors challenge the general assumption that successful internationalization is built through trust. The authors contribute with the conceptualization of a new technical market entry mode for digital platforms – “digitally controlled proxies”.

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