We adopt a Penrosean perspective to study the effect of rapid international expansion on the subsequent divestment of international operations. We draw on regional strategy theory and differentiate Penrosean managerial resources by their geographical fungibility to argue that the effect of rapid international expansion on the divestment of international operations varies with the regional patterns of firms' international expansion and international experience. We test our hypotheses using two-stage least squares (2SLS) estimation on data that capture the international expansion and divestment of retailers over the period [2003][2004][2005][2006][2007][2008][2009][2010][2011][2012]. Journal of International Business Studies (2018).

PurposeThe authors combine options logic with transaction cost economics to explain why firms maintain, divest or buy out their international joint ventures (IJVs). It is suggested that a decline in environmental risk and higher partner-related risk makes a firm more likely to acquire an IJV but less likely to divest an IJV. The study also investigates how IJV age moderates the effects of a decline in environmental risk and higher partner-related risk.Design/methodology/approachThe study employs competing risks analyses to examine the drivers of different termination outcomes using a dataset consisting of 459 IJVs in the People's Republic of China, of which 110 were either acquired or divested by their foreign parent.FindingsThe study finds that changes in environmental risk and partner-related risk affect how firms terminate their IJVs in the People's Republic of China. Specifically, the authors find that the effect of exogenous and endogenous risk are more pronounced for the acquisition of IJVs than for the divestment of IJVs.Research limitations/implicationsThe study contributes to international marketing research by complementing options logic with transaction cost economics to provide a theoretical explanation of the different ways in which IJVs in the People's Republic of China are terminated.Practical implicationsIJVs continue to be an important yet often unstable method to serve international markets. Our findings increase managers' awareness of the effect that two important sources of risk may have on the termination of IJVs in the People's Republic of China.Originality/valueThe study provides novel insights into the effect that changes in exogenous and endogenous risk have on a firm's choice of termination mode drawing on novel data on the different ways in which foreign firms have terminated their IJVs in the Peoples' Republic of China.

This paper serves as a conceptual discussion of equity culture and its development mechanism. Equity culture is a less popular source of finance in the Central and Eastern European Countries (CEECs) but yet developed in a number of developed economies. The way the CEECs will proceed is a dynamic and challenging issue to observe. We graphically display ten CEECs from our research sample and four benchmarks in terms of their institutional characteristics and thus cumulatively, we portray the status of their financial system developments and equity culture creation. The Co-Plot applied to create the exhibits, enable us firstly, to identify indicators leading to debt financing and equity financing; and secondly, to place individual CEECs not only in terms of their general financial system development credibility but also in relation to equity culture development. The presence of an efficient bureaucratic system and an institutional system with low corruption levels is a necessary condition. Therefore, if a country's government aims to start building equity culture at all levels of its corporate sector, improved quality of the bureaucratic system and low levels of corruption may enable them to achieve this.

Time Track Session number Session title Room 0900-A1 Regulations and investment incentives JUB 115 A2 Acquisitions by EMNEs FUL 201 A3 FDI theory JUB 144 A4 Global production and sourcing strategies JUB 116 A5 Entrepreneurial decision-making FUL 203 A7 Expatriate performance FUL 101 A8 On-line entrepreneurship and marketing JUB G35 A9 Marketing strategies JUB G36 13 A10 Corporate governance JUB G31 A11 The private sector and sustainable development JUB 117 A12 IB reviews and future research agendas JUB 118 A13 Capabilities in SME internationalization FUL A A14 Learning from internationalization FUL B 10 A15 Entry and ownership modes JUB 155 11 A16 The benefits of alliances JUB 135 EIBA Fellows' Business Meeting FUL 112 1030-1100 Coffee JUB cafe 1100-1230 Plenary Session II: Paul Beamish JUB G08 1230-1430 Lunch Bramber House 1330-1430 Progress in International Business Research Launch of PIBR vol.7 'New Policy Challenges in International Business' FUL A 1330-1415 AIB Western Europe Chapter meeting FUL B 8 Saturday Afternoon Time Track Session number Session title Room-panel B1 Transnational private governance FUL A panel B2 Critical perspectives on the INV literature FUL B 1 B3 Collaboration in environmental/energy projects JUB 115 2 B5 Outward FDI from the Asia-Pacific FUL 203 4 B6 Offshoring and outsourcing in R&D and services FUL 201 7 B7 Capital structure and financial performance JUB G31 8 B8 Managing human resources FUL 101 10 B9 Contemporary challenges for IB strategy JUB 144 10 B10 Multinationality and performance JUB 155 12 B11 Subsidiary innovation JUB G35 13 B12 Responsible governance JUB G36 2 B13 Foreign market entry JUB 116 8 B14 Language and cross-cultural issues JUB 117 9 B15 International marketing JUB 118 11 B16 The experiences of alliances and IJVs JUB 135 1600-Tea & coffee JUB cafe 1630-panel C1 Meet the Editors FUL A panel C2 EMNEs in Advanced Countries FUL B 5 C3 SME global and regional strategies JUB 144 6 C4 R&D internationalization FUL 203 7 C5 International banks FUL 201 8 C6 Human resources and performance FUL 101 10 C7 The internationalization process JUB 155 11 C8 Business networks JUB G35 12 C9 Subsidiary networks JUB G36 14 C10 New IB research practices and methodologies JUB G31 6 C12 Knowledge management and innovation JUB 115 7 C13 International finance JUB 116 10 C14 FDI and host economies JUB 114 11 C15 Trust and social capital JUB 118 12 C16 Subsidiary strategies JUB 135 1800-Reception for Peter Buckley OBE JUB cafe 9 Sunday Morning Time Track Session number Session title Room 0900-D1 Corporate social responsibility and human rights JUB D2 The location of FDI FUL 201 D3 The influence of SME dynamic capabilities FUL A D4 The determinants of SME performance FUL B D5 Technology and technology transfer in MNEs FUL 101 D6 Executive remuneration, retention and monitoring JUB G35 D7 The effects of national culture JUB G36 10 D8 Location determinants and impacts JUB 144 10 D9 The activities of MNE subsidiaries JUB 155 12 D10 Knowledge transfer within MNEs JUB G31 10 D11 Internationaliza...

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