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1 – 10 of over 8000Yao Lu, Elena E. Karpova and Ann Marie Fiore
The purpose of this paper is to provide a theory‐based framework that informs a fashion retailer's entry mode choice into a foreign market.
Abstract
Purpose
The purpose of this paper is to provide a theory‐based framework that informs a fashion retailer's entry mode choice into a foreign market.
Design/methodology/approach
Aspects of transaction cost, bargaining, resource based, and internationalization theories were integrated to develop a conceptual framework for fashion retailers determining the best entry mode to foreign markets. Propositions were developed, which serve as bridge laws, bridging the gap between the theories and the investigation of fashion retailers' entry mode choice. A case study was used to demonstrate applicability of the developed propositions.
Findings
Three groups of factors were identified that influence entry mode choice in the fashion retail market: firm‐specific factors of asset specificity, brand equity, financial capacity, and international experience; country‐specific factors of country risk, cultural distance, and government restrictions; and market‐specific factors of market potential and market competition. Nine propositions were generated, positing how each of the factors may influence a fashion retailer's entry mode choice.
Research limitations/implications
The conceptual model and propositions require further empirical investigation. Future research also needs to systematically explore the interactions or trade‐offs between different determinate factors.
Practical implications
A fashion retailer can use the framework and propositions to systematically evaluate the company's case to justify an entry mode decision for a specific foreign market.
Originality/value
This is the first paper to describe the integration of theories to help explain factors affecting fashion retailers' entry mode choice.
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Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela have emerged as the key Latin American Big Emerging Markets. Though touted to offer attractive opportunities for foreign…
Abstract
Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela have emerged as the key Latin American Big Emerging Markets. Though touted to offer attractive opportunities for foreign firms, these markets are a mixed bag of business and consumer environments. Not surprisingly, the entry mode literature fails to give a consistent view of entry mode choices for firms entering these markets. However, these markets can yield better long term benefits for firms entering through high resource commitment modes. In this work, we analyze their business and consumer environments and make a case for choosing high resource commitment entry modes for the U.S. firms.
Anders Blomstermo, D. Deo Sharma and James Sallis
The purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry…
Abstract
Purpose
The purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry modes service firms opt for, and if this is influenced by systematic differences between types of service industries. A secondary purpose is to test the generalizability of the research findings from manufacturing sector to service sector firms.
Design/methodology/approach
Our sample consisted of 140 Swedish service firms. These firms were investigated using a mailed questionnaire survey, and logistic regression analysis was used for testing the hypotheses.
Findings
The statistical analysis shows that, in general, soft‐service firms are much more likely than hard service firms to choose a high control entry mode over a low control entry mode. Furthermore, as cultural distance increases, the likelihood of this choice increases even more.
Research limitations/implications
The implications are that while hard service suppliers can learn from the experience of manufacturing firms going abroad, soft services are unique. Given the importance for soft‐service suppliers to interact with their foreign customers, they should opt for a high degree of control over their foreign market entry mode. In future research on foreign market entry mode selection in service firms more attention should be given to social processes that exercise control.
Originality/value
The findings enhance knowledge on foreign market entry by service firms.
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Said Elbanna, Linda Hsieh, John Child, Rose Narooz, Svetla Marinova, Pushyarag Puthusserry, Joanna Karmowska, Terence Tsai and Yunlu Zhang
Drawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization…
Abstract
Purpose
Drawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization outcomes recognizing that the moderating influence of entry-mode learning potential is not well documented in the literature on small- and medium-sized enterprises (SMEs).
Design/methodology/approach
The sample includes 180 SMEs evenly selected from three industries: biotechnology, software and clothing (60 firms in each industry). The sampled firms employ less than 250 employees and are equally distributed between three developed economies and three emerging economies. All were engaged in foreign business.
Findings
The authors find that there is a direct relationship between levels of foreign market involvement and internationalization outcomes. Entry-mode learning potential moderates the relationship between intensity of foreign market involvement and internationalization outcomes but not the relationship between geographic spread and internationalization outcomes.
Practical implications
This study reveals several new insights that help explain the pathway through which foreign market involvement activities are translated into internationalization outcomes.
Originality/value
The authors conclude that the positive relationship between intensity of foreign market involvement and internationalization outcomes is strengthened when SMEs also use an entry mode with a higher learning potential than exporting only.
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Martina Battisti, Joanna Scott-Kennel and David Deakins
Integrating network attributes from studies of social networks, business relationships and small- to medium-sized enterprise (SME) internationalization, this study adopts a…
Abstract
Purpose
Integrating network attributes from studies of social networks, business relationships and small- to medium-sized enterprise (SME) internationalization, this study adopts a perceptual view of a firm’s focal “net” of relationships to examine foreign market entry mode choice. This study aims to examine how the interaction between knowledge-intensive service (KIS) firm’s network ties, embeddedness and position is related to choice of mode and subsequently the firm’s perceived insidership status within its focal net.
Design/methodology/approach
This research is based on qualitative interviews with 25 small- to medium-sized KIS firms engaged in direct exporting or foreign direct investment (FDI). This study derives an empirically grounded framework of four distinct network patterns of these KIS firms through an iterative process of triangulation between cases and theory.
Findings
The four network patterns illustrate the complex interaction between network attributes and entry mode choice by KIS firms. The findings suggest formal ties and centrality in closed network relationships provide the “central controller” firm discretion over their entry mode choice. Resource-intensive FDI by “opportunistic investors” proved essential to securing centrality through formal, institutional ties. Less optimal patterns lacking institutional ties and centrality, however, precluded choice of FDI by “specialized exporters” and “client followers.” The study finds that entry modes are less likely to be influenced by the firm’s embeddedness in open or closed network relationships, but rather by the desire to achieve a more central network position and legitimacy through more formal, less imitable ties.
Research limitations/implications
The findings demonstrate the importance of network structure, a position of centrality, and strength of professional and institutional ties to small KIS firm internationalization. By adopting a more finely grained examination of the interaction between key attributes of the firm’s focal net, this study provides a valuable first step in conceptualizing the complexities associated with networking and adoption of export/investment internationalization modes.
Practical implications
There are a number of implications for the strategic and operational facets of smaller KIS firm internationalization. To avoid excessive network liability for resource-deficient SMEs, practitioners should consider network positioning as a strategic activity, with the costs associated with building and maintaining networks offset against economic- and resource-related returns.
Originality/value
The authors contribute to a better understanding of entry mode choices of KIS by taking a network perspective that accounts for the combined effects of different network attributes. The four network patterns identified extend current theoretical knowledge on the role of networks for entry mode choices of small KIS by highlighting that entry mode choices reflect the particular firm’s focal net and its attempt to achieve insidership status through high centrality and formal ties.
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Yung‐Chul Kwon and Leonard J. Konopa
Focuses on characteristics of a host country′s market thatinfluence a firm′s entry mode choice of exporting versus producing inthat foreign country. A survey was conducted among…
Abstract
Focuses on characteristics of a host country′s market that influence a firm′s entry mode choice of exporting versus producing in that foreign country. A survey was conducted among US manufacturers who exported a given product to one country and locally produced the same product within another country. The host country′s market characteristics were described in terms of their business environment, production factors, and competitiveness of local competitors. The hypotheses tested indicated that the level of competitiveness of local competitors and availability of local production factors have a greater impact on the firm′s entry mode choice than a host country′s business environment factors.
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Katharina Laufs, Michael Bembom and Christian Schwens
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…
Abstract
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.
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Bowon Kim, Hyunchan Kim and Yoonseok Lee
As an exploratory study, our research aims to investigate what factors would influence choices of foreign market entry mode by system integration (SI) companies. There are two…
Abstract
As an exploratory study, our research aims to investigate what factors would influence choices of foreign market entry mode by system integration (SI) companies. There are two distinct points. First, we specifically focus on a service industry, i.e., SI (System Integration) industry, which has unique features compared with other industries, yet not been studied extensively. Second, we indirectly examine whether forces influencing firms in an advancing country like Korea are different from those in more advanced countries: in this paper we investigate the Korean cases only, since most of the previous studies viewed this issue from the perspective of advanced countries.
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Ikechi Ekeledo and K. Sivakumar
This research has two major purposes: developing and testing a resource‐based framework for entry mode choice and ascertaining the extent to which the determinants of foreign…
Abstract
This research has two major purposes: developing and testing a resource‐based framework for entry mode choice and ascertaining the extent to which the determinants of foreign market entry mode choice in the manufacturing sector apply to foreign market entry mode choice in the non‐separable service sector. Using mail survey data collected from top‐level managers of US firms that had been engaged in international business, the article tests a number of research hypotheses concerning foreign market entry mode choice in the manufacturing and service sectors. The managerial and research implications of the findings are delineated and directions for future research are offered.
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This paper delves into the mechanism of the contingency framework for foreign entry mode decisions and identifies two essential tasks that jointly determine the outcome of the…
Abstract
This paper delves into the mechanism of the contingency framework for foreign entry mode decisions and identifies two essential tasks that jointly determine the outcome of the entry mode decision. It then recognizes a critical weakness in previous research pertaining to the comparison of entry modes along a key decision criterion, the degree of control. Existing studies generally treat equity involvement as the only source of entrant control, while largely ignoring non‐equity sources of control (i.e., bargaining power and trust). Non‐equity sources of control, when underutilized, amount to missed opportunities, increased resource commitments, and heightened risk exposures in foreign markets. Drawing from a pluralism perspective in transaction and relationship governance, the author presents a more integrative method for the ranking of entry modes along the degree of control. The central message is that companies entering foreign markets should make an earnest effort to identify trust and bargaining power situations and fully utilize their control potential in making entry mode decisions.
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