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1 – 10 of 356Huda Khan, Nadia Zahoor, Ahmad Arslan and Zaheer Khan
This study aims to understand the dynamics underpinning the exit and re-entry strategies adopted by multinational enterprises (MNEs) in an emerging market, Pakistan.
Abstract
Purpose
This study aims to understand the dynamics underpinning the exit and re-entry strategies adopted by multinational enterprises (MNEs) in an emerging market, Pakistan.
Design/methodology/approach
This study undertook an in-depth historical case study of Yamaha Motorcycles, which had initially entered Pakistan as a joint venture but had then exited and re-entered as a wholly owned subsidiary.
Findings
This study found that, despite its status as a market leader and one of the older players in the Pakistani market, changing market dynamics in the 2000s – especially the increased competition brought by more affordable (inexpensive) Chinese motorcycles and the weak enforcement of industrial policies – had pushed Yamaha Motorcycles to exit. Another factor that had contributed to its exit were differences in risk perception and strategies with its local joint venture partner (a Pakistani business group). Hence, both firm-level and institutional factors had played significant roles in Yamaha’s market exit. This study further found that re-entering in a wholly owned subsidiary operation mode had been beneficial for the firm, as it gained a significant market share due to its focus on innovation and on capturing a market niche, which had earlier not been its main focus. The findings also suggest that opportunity logics and multiple forms of learning can be important for a firm’s re-entry into a host market – such as experiential (i.e. learning from experience) and vicarious learning (i.e. learning from other organizations, including suppliers and competitors) in an emerging market context, in which institutions evolve amid political and policy uncertainty. Finally, this study found that exit and re-entry timing is an important factor for the development of competitive advantage in a host market.
Originality/value
This study is among the few to have investigated the exit and re-entry strategies of MNEs in emerging markets. The relatively short time during which Yamaha Motorcycles had been out of the market had benefited it on its re-entry, as the firm had been able to capitalize on its prior learning and ties to suppliers’ networks.
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Irina Surdu and Edith Ipsmiller
Going back into previously exited markets is a significant management risk. But, how are re-entry risks managed? By adding strategic reference point (SRP) rationales to the risk…
Abstract
Going back into previously exited markets is a significant management risk. But, how are re-entry risks managed? By adding strategic reference point (SRP) rationales to the risk management literature, this chapter examines re-entry after initial entry and divestment on a sample of 654 multinational enterprise (MNE) re-entrants. The authors move away from narrow risk management lenses according to which risks happen in isolation and theorize that MNEs simultaneously manage international risk by exploiting the trade-offs among external and internal sources of risk. The authors explain that, for re-entrants, exit may become the SRP for evaluating future strategic choices. The results suggest that re-entrants tend to manage re-entry risk by choosing partner-based modes that enable them to maintain strategic flexibility at re-entry. Surprisingly perhaps, market-specific experience acquired during the initial market foray does not provide strategic flexibility, in that highly experienced firms still experience risk trade-offs.
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Zubair Ali Shahid and Leonie Hallo
Current internationalisation and international business (IB) theories are silent on the intermittent internationalising experiences of small and medium size enterprises (SMEs…
Abstract
Current internationalisation and international business (IB) theories are silent on the intermittent internationalising experiences of small and medium size enterprises (SMEs) from emerging economies (EEs). The aim of this chapter is to examine the role that networks play in facilitating SMEs from EEs subsequent behaviour following intermittent (exit and subsequent re-entry) internationalising experiences, and to build the theory of this process. Internationalisation of SMEs is a complex phenomenon. Utilising qualitative interview-based data from 15 Pakistani and Chinese SME entrepreneurs, industry experts and government representatives, this study concludes the following: SMEs from EEs continuously reconfigure existing products, resources and markets through networks while reducing and reviving levels of commitment with partners in international markets. Additionally, entrepreneurs from these markets proactively choose to dissolve existing relationships, withdraw from foreign markets to seek new partnerships and diversify resources to reduce foreign market uncertainty. However, some SME entrepreneurs seek to re-enter into previous markets utilising prior relationships and networks. Hence, successful management of network relationships over time is a challenge for internationalising SMEs.
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Based on a multiple spells approach, this paper studies the extent and the composition of chronic poverty in Germany. The results indicate that about one-third of cross-sectional…
Abstract
Based on a multiple spells approach, this paper studies the extent and the composition of chronic poverty in Germany. The results indicate that about one-third of cross-sectional poverty in a given year is chronic. The characteristics that are most closely associated with long-term poverty are economic inactivity and pensioner status, while the number of children and the gender of the household head do not seem to have a systematic effect. This is in contrast to cross-sectional results where the biggest poverty risk is usually unemployment and a large number of children, while pensioners do not face particularly high poverty risks. Estimates from a multiple spells hazard model further suggest that 6% of the population have unobserved characteristics that lead to low poverty exit and high re-entry rates, making these individuals likely candidates for chronic poverty. A comparison with results for Great Britain and the United States suggests that poverty is less persistent in Germany.
Jorge Espinoza-Benavides, Maribel Guerrero and David Díaz
This study aims to evaluate the role of entrepreneurial ecosystems conditions (formal, informal and social capital) on different types of entrepreneurial re-entry at a global…
Abstract
Purpose
This study aims to evaluate the role of entrepreneurial ecosystems conditions (formal, informal and social capital) on different types of entrepreneurial re-entry at a global scale.
Design/methodology/approach
Given this phenomenon’s nature, this study builds a panel of data of 54 economies covering different (advanced and emerging) countries across the globe during the period 2004–2017 by mixing multiples sources of information (e.g. Global Entrepreneurship Monitor, the World Economic Forum, the World Bank and the International Monetary Fund). The statistical analysis consisted of the fixed-effect dynamic generalized method of moments (GMM) estimation for panel data.
Findings
Three empirical insights emerge from the study. First, the entrepreneurial ecosystem’s formal conditions are mainly configured to support high-growth entrepreneurship ignoring re-entrepreneurs. Consequently, the formal conditions’ contribution is very limited in emerging economies. Second, the analysis of informal conditions revealed social media’s critical contribution for legitimizing entrepreneurship and supporting those entrepreneurs who want to re-enter the domestic or international market after a business failure. Third, social networks built during previous business angels or entrepreneurial experiences or with other entrepreneurs also play a crucial role for re-entrepreneurs to overcome the weaknesses in the entrepreneurial ecosystems’ conditions.
Originality/value
The study contributes to two ongoing academic debates among entrepreneurship scholars. The first is related to how the entrepreneurial ecosystem supports entrepreneurial activity in different economic contexts. The second is related to the study of the contextual determinants of entrepreneurial re-entry after a business failure.
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Susan Freeman, Seyda Deligonul and Tamer Cavusgil
Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the…
Abstract
Purpose
Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the processes of de‐internationalization and re‐internationalization. Strategy and internationalization processes are created by entrepreneurial behaviour. If one wants to understand various international behaviours and strategic changes in firms one needs to focus on entrepreneurs – individual managers. The purpose of this paper is to unify the theoretical framework on born‐globals by addressing two questions. How do managers move through the de‐internationalization (exit) to re‐internationalization (re‐entry) process? How do they choose their patterns of internationalization?
Design/methodology/approach
To address these research gaps, this study draws on 26 in‐depth interviews with senior managers across nine Australian born‐globals.
Findings
Moving between outward and inward‐oriented activity as they de‐internationalize and re‐internationalize is used as proactive strategic re‐structuring by born‐global managers for survival during periods of global economic decline or changing competitive conditions.
Originality/value
This study provides new theoretical insights where the entrepreneur is central to the internationalization process and provides practical implications for those involved in international business and marketing.
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Jingyang Li, Shengping Gong, Xiang Wang and Jingxia Li
The purpose of this paper is to establish an orbital launch window for manned Moon‐to‐Earth trajectories to support China's manned lunar landing mission requirements of…
Abstract
Purpose
The purpose of this paper is to establish an orbital launch window for manned Moon‐to‐Earth trajectories to support China's manned lunar landing mission requirements of high‐latitude landing and anytime return, i.e. the capability of safely returning the crew exploration vehicle at any time from any lunar parking orbit. The launch window is a certain time interval during which the transearth injection may occur and result in a safe lunar return to the specified landing site on the surface of the Earth.
Design/methodology/approach
Using the patched conic technique, an analytical design method for determining the transearth trajectories is developed with a finite sphere of influence model. An orbital launch window has been established to study the mission sensitivities to transearth trip time and energy requirements. The results presented here are limited to a single impulsive maneuver.
Findings
The difference between the results of the analytical model and high‐fidelity model is compared. This difference is relatively small and can be easily eliminated by a simple differential correction procedure. The launch window duration varies with launch date, from less than one hour to greater than 20 h, and the launch window occurs every day in the sidereal month.
Research limitations/implications
The solution can be used to serve as an initial estimate for future optimization procedures.
Practical implications
The orbital launch window can be used to provide the basis for the preparation of an orbital launch timetable compatible with lunar missions and re‐entry conditions requirements.
Originality/value
Previous studies were mainly concentrated on the launch windows for the departure from the Earth. This paper investigates and establishes the orbital launch window for Moon‐to‐Earth trajectories.
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The purpose of this study is to analyse the impact of certain factors (such as working mothers’ attitudes towards career role salience, notion of career success, work-life balance…
Abstract
Purpose
The purpose of this study is to analyse the impact of certain factors (such as working mothers’ attitudes towards career role salience, notion of career success, work-life balance and the impact of organisational support systems available for childcare) on career persistence, despite parenthood, and career re-entry after parenthood. It is conducted in relation to new age, young working mothers of the booming IT sector in India.
Design/methodology/approach
A survey questionnaire was administered to 138 working mothers in the IT sector to analyse the impact of working mothers’ career role salience, notion of career success, work-life balance and the impact of organisational support systems available for childcare on career persistence, despite parenthood.
Findings
The findings state that re-entry is also a growing phenomenon, in as much as career breaks are an accepted reality. Career role salience and notions of career success are important predictors of career re-entry of young mothers. Most importantly, this study highlights the significant role of the trusted, extended family support system, that is characteristically unique to Indian social fabric, in enabling women’s career persistence and career re-entry after motherhood.
Research limitations/implications
Like most survey research, this study’s validity is also limited to the findings on the self-reported responses. Nevertheless, the study points to new areas to be researched, such as the possibility of the same findings with older mothers who have spent considerable years in their careers, or whether the same sample would answer differently after a few years.
Practical implications
The paper includes implications for society and organisations, concerning opting out, and for undertaking genuine initiatives to enable and support women to re-enter their careers after breaks, so that the decision to persist, exit or re-enter their careers remains the privileged choice of women employees.
Originality/value
The paper fulfils an identified need to study how parenthood affects women’s careers in the IT sector and need for organisations in India to understand the practicality of women employees’ needs to integrate work and life.
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Nick Dew, Brent Goldfarb and Saras Sarasvathy
We challenge the premise that the CEO's job is to keep the corporation alive and thriving at all costs and under all circumstances. We briefly review the differing normative views…
Abstract
We challenge the premise that the CEO's job is to keep the corporation alive and thriving at all costs and under all circumstances. We briefly review the differing normative views of strategic management theorists and organizational theorists about organizational inertia. We then develop an economic model of incumbent behavior in the face of challenger competition that accommodates complementary assets. The model predicts and describes conditions under which organizational inertia, as subsequent organizational failure, is optimal. We then extend the logic and propose that the failure of entrepreneurial firms does not necessarily imply the failure of entrepreneurs. We conclude with a call to study “exit” as a viable strategic option.
This chapter aimed to find out which factors affected three Estonian case firms’ serial nonlinear internationalization before and during the Covid-19 pandemic. It also studied how…
Abstract
This chapter aimed to find out which factors affected three Estonian case firms’ serial nonlinear internationalization before and during the Covid-19 pandemic. It also studied how these firms responded to the pandemic and what they learned from their previous business experience. It contributed to the literature on serial nonlinear internationalization and to studies on the (potential) impacts of Covid-19 on firms’ local and international activities by showing that these case firms exited and re-entered foreign markets and experienced considerable export fluctuations before 2020, during and after it. Thus, serial nonlinear internationalization should be perceived as something normal, and it can be expected to occur both during stable and unstable times: it does not only characterize economic crises, and it should not be seen as a failure sign. The pandemic affected the case firms’ internationalization considerably – for instance, via demand fluctuations and travel restrictions – but it also created some additional business opportunities: for example, by creating demand for some additional products and by increasing some customer groups’ interest for some existing products. These firms’ (international) business experience acquired before Covid-19 was also useful during the pandemic as they continued with some previous expansion activities. On the other hand, they also tried something new. As a result, all firms’ total turnover increased in 2020, and it might also increase in 2021, despite some problems in the first quarter.
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