Search results

When entering foreign markets, multinationals can acquire part of a foreign firm and can increase or decrease their equity stake over time. However, extant studies have mainly focused on equity stake acquired during initial market entry. The paper aims to discuss this issue.

This study fills this gap by using the Uppsala model to analyze six cases of international acquisitions of Finnish multinationals in global markets.

The authors found that firms change their equity stake in partially acquired foreign subsidiaries: when they have learned about the host country and businesses of the partially acquired firms, when they have gained target-specific experience, when they build trust and ensure relationship commitment and finally, when they jointly develop and exploit opportunities.

This study is one of the first to apply the Uppsala model to empirically analyze international acquisitions, thus paving the way for behavioral and process-oriented approaches. The study contributes to knowledge of post-entry strategies of multinationals.

The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States.

The paper analyse performance of IJVs in Baltic States based on the IJV theory, international business literature, and foreign direct investments in Central and Eastern Europe (CEE) literature. The analysed factors include firm, investment, and inter-partner relationship-specific factors. To examine the propositions the paper used ten IJVs established by Finnish firms in various Baltic States between the period 1991 and 2005.

The results show that the level of uncertainties in the countries and the differences between partners are not related to firms’ commitments and the entry mode choice. Several Finnish firms preferred cost leadership to compete with other firms in the local markets. In most cases there was a positive relationship between the level of partners’ equity share, commitment to the IJV, and the level of trust between partners. The results indicated differences in the IJV performance depending on parent firms’ objectives, their competitive strategies, mode of entry, age of IJVs, control strategies, level of trust, and commitment between partners, as well as depending on the performance measures used.

This study suggests four observations that managers may need to take into consideration to improve IJV performance in the Baltic States. First, cost leadership strategy help to increase IJV performance in terms of sales. Second, social control mechanisms and narrow control leaded to better performance than formal and wide control. Third, minority ownership by Finnish firms in IJVs leaded to better performance based on sales, productivity and total performance whereas majority ownership had leaded to better performance in terms of total costs. Finally, the results confirmed that commitment to the IJV operation and trust on the other partner are very essential factors to IJV performance.

The study is the first one to analyse in more detail based on several cases the IJV strategies and performance of Finnish firms in the Baltic States. The analysed factors include several such factors which have not been analysed related to IJV operations in Baltic States (some also limitedly in the CEE context).

This article aims to analyse the strategies of international brewing companies in the Central and Eastern European (CEE) beer market and the development of national beer markets in the region since 1990.

The research is explorative, based on a broad variety of secondary data sources and company interviews.

The findings provide an insight into the approaches of foreign brewing companies operating in CEE markets. Despite some differences in the initial internationalisation motives, target market choice and market entry modes that reflected the strategic priorities of investing brewers, market‐seeking motives, strong brands, marketing intelligence, rapid aggressive internationalization and control over the operations have been the key success factors for Western brewers in CEE.

The secondary nature of the research information is a limitation for the validity of the study. Nevertheless, the triangulation of data sources using various secondary data, supported by in‐company interviews and authors' insights, has aimed at minimising the research bias.

Considering the growth and consolidation in the brewing industry world‐wide, brewers in CEE should focus on further mergers and acquisitions, product diversification/upgrading and brand innovation.

This paper represents an original attempt to assess the trends in the development of the brewing industry in CEE post‐1990. It reflects the impact of international interest on the CEE brewing companies and raises some concerns associated with the preservation of the brewing heritage in the region.

This study, empirically investigates how the ownership‐specific variables, location‐specific variables and strategic motives have influenced the ownership structure choices of Finnish manufacturing firms in ten South and south‐east Asian countries from 1980 to 2000. Very few studies in FDIs have been undertaken so far to empirically analyze the ownership‐specific and location‐specific variables together with the strategic motives in order to understand the ownership structure choices of the investing firms. To the best of our knowledge, this is the first study trying to analyze how the ownership‐specific variables, location‐specific variables, and strategic motives have influenced the ownership structure choices of Finnish manufacturing FDIs in Asian countries. The research results indicate that large international experience, low cultural distance, large market size, and high levels of economic welfare in the target country increases the probability of choosing wholly owned subsidiary (WOS) in order to undertake market‐seeking and efficiency‐seeking FDIs. Similarly, it has also been found that low levels of risks in the target country increases the probability to choose WOS in order to undertake risk‐reduction seeking FDIs.

To empirically investigate how the location‐specific variables and strategic motives influence the ownership strategies of Finnish manufacturing firms in ten South and Southeast Asian countries from 1980 to 2000.

Because of the nature of the dependent and independent variables, the binomial logit model is used in the analysis. The regression coefficient estimates the impact of independent variables on the probability that the wholly owned subsidiary (WOS) is market, efficiency and/or a risk‐reduction seeking type of foreign direct investment (FDI). A positive sign for the coefficient means that the variable increases the probability of choosing WOS and undertaking a certain type of investment.

The research results indicate that the low cultural distance, large market size, and high levels of economic welfare in the target country increases the probability of choosing WOS in order to undertake market‐seeking and efficiency‐seeking FDIs. Similarly the low level of risks in the target country increases the probability to choose WOS in order to undertake risk‐reduction seeking FDIs.

Due to the lack of information about the absolute and relative size of FDIs and competition related data could not be included in this study. Adding those variables would also be interesting for future research.

This study may also help the different governments to understand the strategic motives of different multinational firms and fine‐tune existing investment policies or criteria to better satisfy some of their motives.

To the best of our knowledge, this is the first study trying to analyze how the location‐specific variables and strategic motives have influenced the ownership strategies of Finnish manufacturing FDIs in Asian countries.

The purpose of this paper is to investigate whether Hofstede’s (2001) cultural framework and the value paradox explain the use of appeals in advertising in Estonia.

Hypotheses are drawn in relation to Hofstede’s original four cultural dimensions – power distance, masculinity/femininity, individualism/collectivism and uncertainty avoidance. A sample of 110 print advertisements from four magazines were analyzed using Pollay’s (1983) classification of advertising appeals.

The results show that Estonian advertising reflects paradoxical values related to low power distance and femininity dimensions, and culturally congruent values related to high-uncertainty avoidance and individualism.

Findings suggest that cultural values (desired) alone are insufficient to predict the reflection of culture in advertising. Rather, consideration of the discrepancies between the cultural values (desired) and practices (desirable) enables a better explanation of the relationship between society and its advertising.

Scholars have shown increasing interest in the consequences of culture on advertising, but the opposing aspect of cultural values and practices has received limited research attention. The paper offers interesting insights regarding the effect of culture and the value paradox on the use of appeals in advertising. Additionally, analyzing the advertising of Eastern Europe is highly important because of the limited research attention that exists with respect to advertising in the region.

The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized enterprises (SMEs) should be conducted.

A comprehensive overview of concepts and a conceptual framework to study internationalization patterns of SMEs is offered.

The complexities of existing definitions and methodologies for researching internationalization patterns are highlighted, and a synthesis of the issues is provided. An integrative model of internationalization pathways, and their antecedents and outcomes is presented.

It is recommended that future research focuses especially on the time dimension of internationalization patterns. Future research can contribute to the literature by adopting a longitudinal approach with larger samples and more detailed cases to capture the dynamics of internationalization.

Practitioners might map their positions, and look for challenges and opportunities with regard to their chosen internationalization pattern. They can also benchmark other firms’ pathways and fine‐tune their own approach to internationalization.

The paper integrates a large body of research in an important research area in international marketing. It also provides guidance on how to conduct future research in the area, and introduces the content of this special issue of the International Marketing Review.

This paper has two overall goals. The first is to serve as a broad overview of the literature on the subject theme, with three main objectives in mind: to highlight the complexities of international market selection or segmentation as a field of study and as a strategic decision by international firms; to explore the various ways and perspectives from which this area has been studied; and to suggest areas for future research by drawing on the preceding discussion. The second goal of the paper is to act as an introduction to the IMR special issue on the title theme, by outlining the special issue's objectives and the contributions to it.

Drawing on the relevant literatures, the paper begins by outlining the factors that make the field complex in both theoretical and applied terms, moves to consider the research streams that comprise its main components, and concludes by drawing conclusions and implications for future research.

A large part of the complexity characterizing this field arises from the fact that it is closely intertwined with the broader area of internationalization and a number of other decisions related to it, such as the “go/no‐go” decision and the firm's choice of mode of entry. From the research perspective, theory development has been impeded by a high degree of fragmentation, which has resulted in various different streams studying the same general issues from widely different perspectives.

The paper identifies a large number of directions for potential future research, not the least of which is the need for integrative research that addresses the fragmentation identified in the study.

Although this is primarily a theoretical paper directed at researchers, practitioners can gain useful insights from it by examining the various factors that have a bearing on their internationalization decisions.

The objectives of the main part of the paper will have been met if it succeeds in stimulating interest in further research and discussion on the core issues. The second part summarizes the contributions to the special issue and draws attention to the main message that each aims to convey.