Country-specific strategy and new venture formation in Central and East Europe

Gil, Adrian

doi:10.1108/sd.2006.05622iad.005

Cited by 3 publications

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“…Some research reveals that market seeking firms use less joint ventures for new venture formation (Gil et al 2006). Lastly, market seeking FDI will impact local economy by creating more jobs among linked partners (Hansen et al 2009).…”

Section: Introductionmentioning

confidence: 99%

“…Second, these studies do not fully consider the strategic fit of this strategy and other external and internal factors, assuming that market seeking is equally effective in different conditions (Gil et al 2006). The strategic fit perspective asserts an important co-alignment between the strategy, the environment and organization structure, where the strategy is organized and implemented with the aim of enhancing performance (Olson et al 2005;Venkatraman 1989;Venkatraman and Camillus 1984;Xu et al 2006b).…”

Section: Introductionmentioning

confidence: 99%

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Market Seeking Orientation and Performance in China: The Impact of Institutional Environment, Subsidiary Ownership Structure and Experience

Zhang

Jin-meng

2014

Manag Int Rev

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(2015) 'Market seeking orientation and performance in China : the impact of institutional environment, subsidiary ownership structure and experience.', Management international review., 55 (3). pp. 389-419. Further information on publisher's website:http://dx.doi.org/10.1007/s11575-014-0227-2Publisher's copyright statement:The nal publication is available at Springer via http://dx.doi.org/10.1007/s11575-014-0227-2.Additional information: Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. Abstract: Many foreign firms tend to follow the market-seeking mandate in China. However this orientation alone does not guarantee superior performance. From the perspectives of strategic fit and institutional theory, this research seeks to reveal several conditions under which market-seeking MNEs can achieve superior performance in China. We identify three performance contributors to marketing seeking FDI: the host country's favorable formal institutions towards FDI, the subsidiaries' operational experience and absorptive capacity in the host country, and the ownership structure of the subsidiary. Using data of 5,080 foreign invested subsidiaries in 2003-2010, our findings support the hypotheses that market-seeking orientation becomes more profitable for foreign subsidiaries in China when (1) the host country provides a more favorable institutional framework towards FDI; (2) the subsidiary has a longer history of FDI operation in the host country that leads to stronger absorptive capacity; and (3) the subsidiary is organized in a wholly owned manner.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Market Seeking Orientation and Performance in China: The Impact of Institutional Environment, Subsidiary Ownership Structure and Experience

Zhang

Jin-meng

2014

Manag Int Rev

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“…It was found that market-seeking motives (if related to market expansion rather than to the defence of markets) are positively associated with high-control entry modes (Tsai and Cheng, 2002;Gil et al, 2006); this result, however, is not very robust (Morschett et al, 2010). The same applies for cost-reducing motives; for example, Shi et al (2001) did not find a significant relationship between this type of motive and entry mode choice.…”

Section: Motivesmentioning

confidence: 45%

Determinants of Equity-Based and Co-Operative Foreign R&D and Impact on the Parent Firm’s Performance

Berger

Hollenstein

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation. Terms of use: Documents in EconStor may JEL AbstractThe paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation.Keywords: Internationalisation of R&D; Governance of foreign R&D; International R&D cooperation; Foreign R&D and performance; OLI paradigm and R&D IntroductionOver the last twenty years internationalisation of R&D strongly increased and its pattern changed quite considerably (OECD, 2008). Several studies highlighted that R&D investments at foreign locations are motivated not only by traditional market and cost considerations but, more and more, by the intention to gain access to specific knowledge not available at home (see, among many others, Cantwe...

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“…governance (Tsai and Cheng 2002;Gil et al 2006). The results are ambiguous in the case of cost-reducing motives (Shan 1991;Shi et al 2001;Gil et al 2006).…”

Section: Motives Of Foreign Randdmentioning

confidence: 59%

“…The results are ambiguous in the case of cost-reducing motives (Shan 1991;Shi et al 2001;Gil et al 2006). As our model deals with R&D activities, we include three motive variables (dummies: high/low relevance): In addition to market-and cost-oriented motives (RDMARK, RDCOST), we account for knowledge-seeking foreign R&D (RDKNOW).…”

Section: Motives Of Foreign Randdmentioning

confidence: 73%

Choice of Foreign R&D Entry Mode and Its Relation to Firm Performance: A Firm-level Analysis for Switzerland and Austria

Hollenstein

Berger²

2015

Economics

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The objective of this study is to identify the determinants of a firm's foreign entry mode choice and the relationship between mode selection and firm performance for the specific case of R&D-a topic not yet investigated in entry mode research. Separate estimates of a Heckman selection model for Austria and Switzerland based on comparable firm-level data and variable specification show for both countries that the OLI model is well-suited to explain not only the propensity to invest in R&D abroad but also the related choice between an equity-based and a non-equity governance mode. Moreover, the research reveals that foreign R&D activity is positively related to firm performance and that this relationship is stronger in the case of an equity-based mode of governance, however only in the Swiss case. The differences between the two countries primarily reflect the much higher degree of internationalisation of the Swiss economy.

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Country-specific strategy and new venture formation in Central and East Europe

Cited by 3 publications

References 0 publications

Market Seeking Orientation and Performance in China: The Impact of Institutional Environment, Subsidiary Ownership Structure and Experience

Market Seeking Orientation and Performance in China: The Impact of Institutional Environment, Subsidiary Ownership Structure and Experience

Determinants of Equity-Based and Co-Operative Foreign R&D and Impact on the Parent Firm’s Performance

Choice of Foreign R&D Entry Mode and Its Relation to Firm Performance: A Firm-level Analysis for Switzerland and Austria

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