Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?

Morschett, Dirk; Schramm‐Klein, Hanna; Swoboda, Bernhard

doi:10.1016/j.intman.2009.09.002

Cited by 275 publications

(247 citation statements)

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“…They conclude that ''the most glaring need in type I studies at the country level (where culture is used as an independent variable) is to explain the conflicting findings regarding the effects of cultural distance on various organizational decisions such as entry mode choice'' (KLG, 2006, p. 302). Meta-analyses on cultural distance analyzing several of these 'organizational decisions' that appeared since KLG's article was published show inconclusive results (Tihanyi et al, 2005;Magnusson, Baack, Zdravkovic, Staub, & Amine, 2008;Reus & Rottig, 2009;Zhao, Luo & Suh, 2004;Morschett, Schramm-Klein, & Swoboda, 2010). One possible reason for these inconsistencies regarding the effect of cultural distance, for example on modes, is that these organizational decisions have been studied separately, whereas location choice, governance mode, entry mode, and performance outcomes are interrelated as part of important strategic decisions.…”

Section: Kirkman Lowe and Gibson's 2006mentioning

confidence: 99%

An overview of Hofstede-inspired country-level culture research in international business since 2006

2016

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(2006) impact on the field. Our review shows that their ideas have informed and inspired their own and other scholars' work and have led to significant progress in the way in which Hofstede's framework has been used in international business in the last decade. Here, we specifically focus on the country-level culture studies and assess how research has implemented Kirkman et al.'s three main recommendations -to explore cultural dimensions beyond those introduced by Hofstede, to distinguish between country effects and cultural effects, and to show not only if culture matters but also how much it matters. In addition to the overview, we provide a comprehensive test of these recommendations showing how they can be put into research practice underscoring the theoretical and empirical relevance of the original 2006 article. Our commentary concludes with additional ideas on further strengthening Hofstede-inspired research at the country level of analysis.

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Section: Kirkman Lowe and Gibson's 2006mentioning

confidence: 99%

An overview of Hofstede-inspired country-level culture research in international business since 2006

2016

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“…Third, for research on international entrepreneurship and international new ventures to develop further, we need to know more about the factors affecting the entry mode choice of these companies. Most of the research developed has centred its attention on the external that conditions entry mode choice (Morschett et al 2009). However our research is focused on companyspecific variables, as marketing capabilities are.…”

Section: Introductionmentioning

confidence: 99%

International new ventures as “small multinationals”: The importance of marketing capabilities

Ripollés

Blesa

2012

Journal of World Business

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This paper aims to explore how marketing capabilities contribute to the international expansion of international new ventures, and the influence of these capabilities on the entry mode these firms choose. Specifically, the study examines how marketing This study extends previous international entrepreneurship research, including insights on antecedents of international new ventures' choice of higher commitment entry modes in foreign markets. Additionally, the results of this work encourage international entrepreneurs to look beyond the explicit value of experiential market knowledge to realize the potential value of marketing capabilities as an antecedent to higher commitment entry modes.

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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: 86%

“…Moreover, some empirical studies add to these "transaction cost variables" one or several of the mentioned variables extending the core of the OLI paradigm such as, for example, the motives of foreign presence or sector affiliation (for a review of the theoretical and empirical entry mode research see Sarkar and Cavusgil, 1996;Datta et al, 2002;Zhao et al, 2004;Brouthers and Hennart, 2007;Morschett et al, 2010). …”

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confidence: 99%

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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Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?

Cited by 275 publications

References 89 publications

An overview of Hofstede-inspired country-level culture research in international business since 2006

An overview of Hofstede-inspired country-level culture research in international business since 2006

International new ventures as “small multinationals”: The importance of marketing capabilities

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

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