An integrated-dynamic mode of entry model: global MNEs entering into emerging markets

Abstract

Purpose

The purpose of this paper is to develop a conceptual model for the mode of entry in a particular case of global MNEs entering into emerging markets.

Design/methodology/approach

The conceptual model builds on institutional theory and follows an integrated approach of entry mode theories using bargaining theory, the liability of foreignness and local legitimacy.

Findings

The conceptual model introduces five propositions.

Research limitations/implications

The study has policy implications for emerging market institutions. Also, the model highlights the significance of long-term vision in global MNEs’ sustainability. However, the model excludes the MNEs’ internal institutions, home country institutions, as well as institutional and cognitive distances.

Originality/value

The conceptual model addresses the dynamics of MNEs’ entry decisions with long-term strategic vision. It helps to recognize the global MNEs’ internalization of the host country’s formal and informal institutions when the bargaining power is in imbalance.

Citation

Enkhtaivan, B. and Davaadorj, Z. (2020), "An integrated-dynamic mode of entry model: global MNEs entering into emerging markets", Review of International Business and Strategy, Vol. 30 No. 1, pp. 97-107. https://doi.org/10.1108/RIBS-04-2019-0046