Search results

The purpose of this study is to develop a conceptual framework for defensive strategy by integrating market entry modes and the typology of firms suggested by Day and Nedungandi, and to attempt to propose how local incumbent firms utilize their mental models in order to react against market entry of new competition in global markets.

The theoretical perspective adopted in the study is how mental models used by incumbent firms influence their reaction to market entry of new competition in developing defensive strategies to defend their markets.

Mental models of incumbent firms, categorized as self‐centered, competitor‐centered, customer‐oriented, and market‐driven firms, impact their reaction and the development of defensive marketing strategies against market entrants using a variety of market entry modes in global markets.

The paper presents an extensive review of the defensive marketing and mental models literature and shows how the way in which incumbent firms react to market entry of new competition contributes to understanding of incumbent reaction to market entry of new competition in global markets. Research directions for future research and managerial implications are also provided.

The aim of this paper is to explore the entry and success of hip‐hop entrepreneurs in the music industry and identify the competitive reactions of well‐established firms within the industry.

The paper used anecdotal data and popular press coverage to trace the evolution of the hip‐hop music industry in the USA and discuss aspects of the marketing strategies of key players in the industry. Additionally, the strategic response of dominant firms to their success within the industry is explored.

Hip‐hop music and its ensuing culture is now a well‐established industry that has enormous marketing power. Although few championed their efforts in the beginning, the contributions of Black American entrepreneurs to the music industry is becoming increasingly recognized by existing firms within the industry and beyond. The failure of major record companies to capitalize on the hip‐hop phenomenon resulted in the creation of new ventures and a new industry. While one could argue that very few key Black American entrepreneurs remain in the industry, the impact and influence of these entrepreneurs and those that have been recruited by major labels suggests that the hip‐hop entrepreneurs should not be ignored.

This paper sheds light on the development of the hip‐hop music industry, which could be of value to aspiring Black American entrepreneurs and marketing managers of companies in other industries that target young urban customers as well as companies that are interested in forming partnerships with Black American entrepreneurs.

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.

Although there is substantial and accumulating evidence on the link between market entry modes and performance, evidence regarding their impact on employee’s perceptions and thereby their commitment is scarce. This is more so in mergers and acquisitions (M&As) where employee’s commitment has a significant impact on post-entry performance. The purpose of this paper is to examine the association between perceptions of justice and organisational commitment in cross-border M&As.

The authors draw on market entry and M&As’ literature and studies on the link between perception of justice and commitment to develop the hypotheses. The authors test the hypotheses with survey data from a merger of two culturally different partners – British and Japanese. A total of 128 responses were received, out of a sample of 151 non-managerial employees within the firm.

The results show a strong association between employees’ perceptions of justice during the merger and commitment to the new organisation. Surprisingly, the results do not support the widely reported interaction effects between different organisational justices and employees’ commitment.

Obtaining data from a single M&A is a potential limitation of this study.

The study underscores the importance of post-market entry. The results suggest that particular attention needs to be paid to the way employees of the acquired firm are treated during their interactions with their counterparts.

The link between market entry and performance is well documented. However, little progress has been made in understanding the antecedents/factors that influence commitment in foreign market entry and in particular cross-border M&As. This study helps close this gap.

A multinational firm’s expansion in a foreign market is a key issue of international business. The purpose of this study is to extend the understanding of essential drivers that will facilitate firm’s assessment of alternative modes of sequential expansion.

The study applies the knowledge-based view and explores a multinational firm’s sequential post-entry expansion in a foreign market. Event histories of Swedish industrial firms’ establishments of wholly owned subsidiaries in Germany, the UK and the USA were explored using Cox regression.

Broad market experiences stemming from corporate strategy and deep experiences from the preceding subsidiary increase the likelihood of a sequential investment. Effects of broad experiences are contingent on the context specified by the geographic scope of the firm and its general subsidiary experience.

The study contributes to international expansion theory and integrates sources of knowledge originating from strategy theory and internationalization theory. The study shows that the dual approach is needed to understand international expansion.

In evaluating a further subsidiary investment in a foreign market, the multinational firm is advised to assess whether it possesses enough market experiences to justify the investment. The experiences should be associated with corporate strategy, the previous wholly owned subsidiary and the context specifications identified in the study.

The study is unique, as it addresses the simultaneous impact of broad and deep market experiences. Also, the inclusion of central context specifications makes the study novel.

The purpose of this paper is twofold. First, to analyze the impact of Chinese managers’ psychic distance (PD) with Germany on their businesses; and second, to investigate whether managers’ previous experiences affect their PD.

A multiple case study research design is adopted. It is based on six Chinese companies that have recently entered Germany through FDI.

PD influences the decision making of Chinese FDI to Germany, it has an impact on Chinese businesses in Germany on 4 out of 12 dimensions, namely, legal, political, cultural aspects as well as language. Managers with no international experience (study, work, foreign investment practice) perceive a higher impact of PD dimensions on business with the host country, whereas the opposite is true for experienced ones.

While extensive research has been conducted on the PD construct under the point of view of the differences between the home and host country’s characteristics, this paper sheds lights on the impact of pre- and post- periods of investment, as well as over international experiences of managers investing abroad. It examines the environmental industry for Chinese FDI to Germany.

The purpose of this paper is to examine the theories used to study the international equity-based entry mode strategies of emerging market multinationals (EMMs) and the contribution of these studies to extant literature.

The authors conducted a systematic review of the literature. A total of 73 articles were identified from key management, international business and international marketing journals published between 2000 and June 2015. Articles were analysed according to the theory(ies) used, thematic area, methodology, home/host countries studied and findings.

Despite the great interest around the topic of how the antecedents and outcomes of EMMs’ international entry mode strategies may challenge and amend existing theories, the findings that come out of this research mirror patterns observed in the entry mode literature in general. Whilst traditional perspectives such as internalisation theory and the OLI paradigm remain prevalent, a growing number of studies draw on institutional theory and combine multiple theoretical perspectives. Newer theories developed specifically to study EMMs (e.g., the springboard perspective) are used in only five studies and challenged to differentiate their theoretical underpinnings from extant literature. Overall, the theoretical contribution of EMM studies is simply a change in emphasis from the role of firm-specific factors towards the influence of home country institutions on entry mode strategies. The authors conclude that the literature has only made tweaks at the edge of theories with no significant changes to extant theorisations.

This is the first systematic review of the literature focusing specifically on the international equity-based entry mode strategies of EMMs.

This paper aims to study the effect of two important marketing decisions on the extent of value capturing by the firm owners. First, it addresses the debate whether acquirers of young technology-based firms value targets that span multiple technology and market categories indicating multiples options for growth or prefer more narrowly defined targets with a clear product and market focus. Second, it investigates to what extent the use of alliances for marketing purposes contributes to value capturing and how they moderate the effect of diversification of technology and marketing.

To estimate the acquisition price, a linear regression model is used, including a Heckman correction controlling for the likelihood of being acquired. The hypotheses are tested in a sample of British venture capital backed firms.

Firms that convey focus in their marketing activities (either because they focus on a few market categories or because they rely on downstream alliance to market their inventions) receive higher valuations at acquisition than those that diversify. Further, also the size of the product portfolio is negatively correlated to the acquisition price. Finally, the results reveal that firms with a broad patent portfolio can reduce the negative effects on firm value by engaging in less downstream alliances.

This paper advances existing research on exit strategies for entrepreneurial firms by considering factors explaining acquisition prices, instead of acquisition probabilities. Further, it adds the categorization research by demonstrating how acquirers respond to complex combinations of technology and market categories.

Offers an appraisal of the corporate experience and prospects of J. Sainsbury plc in the USA, ten years after its market entry. In Part 1, focuses on Sainsbury’s New England subsidiary, Shaw’s, and shows that heavy capital investment, and the determined export of a British model of food retailing, has produced a chain of 119 stores enjoying rapid growth and impressive improvements in profitability. In Part 2, focuses on Sainsbury’s acquisition of 50 per cent of the voting stock (20 per cent of total equity) of Giant Food Inc., the market leader in the Washington DC‐Baltimore area. Shows that Sainsbury is poised to purchase full control of Giant (at an estimated cost of approximately $2 billion), is promoting a major expansion of Giant northwards into Philadelphia, and is on the verge of becoming one of the top ten firms in a US industry worth $410 billion per annum by 1995.

This paper attempts to examine the activity and involvement of board of directors in internationalization activities of firms in emerging markets, by evaluating the resource provisioning roles of interlocks provided by board of directors, and the frequency of board meetings. We demonstrate that the effectiveness of board involvement is contingent upon the levels of family ownership in firms since family ownership could impact the firm’s ability to utilize the presence of different types of board members.

The authors test our hypotheses on a sample of listed Indian companies, extracted from the Prowess database published by the Centre for Monitoring Indian Economy (CMIE), a database of the financial performance of Indian companies. On a panel of 3,133 firm years of 605 unique Indian firms with foreign investments, over a time period of 2006–2017, the authors apply different estimation techniques.

The results demonstrate that both board meeting frequency and director interlocks are instrumental in supporting internationalization activities in emerging market firms. However, family ownership moderates the role of insider and independent interlocks on internationalization investments in different ways; the authors find that interlocks provided by independent directors support internationalization activities in family firms, whereas those provided by insider directors do not. Further, the study also finds that board meetings are less effective in internationalization of family firms.

The authors conclude that family firms aiming at international diversification require to develop more connected and networked independent directors to enable internationalization in firms. While independent director interlocks enhance the international investments, it is also useful to know that board meetings are ineffective in utilizing the resources in family firms. This points to the possibility that family firms should device mechanisms to integrate family meetings with board meetings so that they can utilize the within-family processes to aid in their internationalization decisions.

The study contributes to resource dependence theory by understanding its limiting role in family firms. Theoretically, it helps delineate the limiting resource provision role of the insider directors vis-à-vis independent directors. The authors argue that the resource provision role of insider director interlocks does not effectively help in internationalization in comparison to independent director interlocks in family-dominated firms. Consequently, the study shows the limiting role of resource provision and utilization by family-owned firms in comparison to non-family-owned firms.