Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes

Abstract

Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional modes are encapsulated by the extent of embeddedness required for exploring new and/or exploiting existing resources. In particular, we draw attention to four such categories of non-traditional entry modes the literature has touched on, i.e., capital access, innovation outposts, virtual presence, and the managed ecosystem. We explore the key attributes, antecedents, and strategic implications of these modes. Our paper highlights the need for enriching current entry mode research by considering a broader range of entry mode activities available to firms as well as employing new theoretical perspectives to understand the complex phenomena of internationalization.

International business in the digital age: Global strategies in a world of national institutions

“…To compete successfully (i.e., profitably) in a foreign market, these digital assets need to be combined with local complementors in each local market. To reach a critical mass of users, platform companies have to accumulate and manage numerous complementors and users, which is quite different from traditional practices of managing local suppliers and customers of a foreign subsidiary (Brouthers et al, 2022 ).…”

“…In particular, digitalization provides new opportunities for firms to engage with foreign customers and to reduce capital investments needed to effectively compete in a foreign market. For example, virtual entry modes such as firm-specific websites or complementors in a platform enhance exporting opportunities, vastly increasing the potential scope of customers a firm can reach (Brouthers et al, 2022). Industry 4.0-related technologies enable the collection and analysis of large volumes of data on factory operations and value chains, thereby transforming internal and inter-firm coordination mechanisms (Dachs, Kinkel, & Ja ¨ger, 2019;Lee, Kim, Choi, & Jime ´nez, 2023;Strange & Zucchella, 2017).…”

“…The challenge for IB scholars thus is to integrate strategizing on digital technologies and on internationalization (Figure 1). Many traditional research questions in IB thus merit revisiting (Brouthers et al, 2022). For example, historically, non-equity modes of doing business, such as exports or licensing, have been basic building blocks of IB (Czinkota & Johnston, 1983;Young Hamill, Wheeler, & Davies, 1989).…”

“…We take the perspective that digital technologies allow mature and new firms to expand internationally, capturing opportunities in foreign countries without the same financial burdens and risks traditionally associated with foreign investments (Brouthers, Chen, Li, & Shaheer, 2022 ). We argue that digital technologies lead businesses to reconsider the arguments that shape their internationalization strategy.…”

FDI and Wellbeing: A Key Node Analysis for Psychological Health in Response to COVID-19 Using Artificial Intelligence

“…The motivators of wellbeing at the organizational level are presented by sustainability and survival in the following cross-case study. Organizational development can be an incentive to encourage future expectations of employees’ wellbeing [ 21 ]. Sustainability motivates wellbeing through enhanced R&D activities, such as Geely’s investment in Sweden.…”