Exit from a Foreign Market: Do Poor Performance, Strategic Fit, Cultural Distance, and International Experience Matter?

Sousa, Carlos M.P.; Tan, Qun

doi:10.1509/1069-0031x-23.4.84

Cited by 40 publications

(63 citation statements)

References 83 publications

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“…Specifically: In line with previous work (e.g. Benito, 2005;Tan and Sousa, 2017;Mellahi, 2003;Sousa and Tan, 2015), we recognise that firms exit for reasons other than failure to perform, rather, some exits can be characterised as strategic. Strategic exits occur generally when firms undergo organisational restructuring of their international operations and actively choose to re-allocate their resources to other markets or re-focus on growth in the home market.…”

Section: Effect Of Prior Experience On Re-entry Commitment: Motives Fsupporting

confidence: 66%

Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies

2018

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We investigate foreign market re-entry commitment strategies, namely the changes in the modes of operation (commitment) undertaken by multinational enterprises (MNEs) as they return to foreign markets from which they had previously exited. We combine organisational learning theory with the institutional change literature to examine the antecedents of re-entry commitment strategies. From an analysis of 1,020 re-entry events between 1980 and 2016, we find that operation mode prior to exit is a strong predictor of subsequent re-entry mode. Contrary to the predictions of learning theory, we did not find support for the effect of experience accumulated during the initial market endeavour on the re-entry commitment strategies of MNEs. In turn, exit motives significantly impact on the re-entrants' decision to re-enter via a different mode of operation, by either increasing or decreasing their commitment to the market. We show that re-entrants do not replicate unsuccessful operation mode strategies if they had previously underperformed in the market. When favourable host institutional changes occur during the time-out period re-entrants tend to increase commitment in the host market irrespective of the degree of prior experience accumulated in the market.

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Section: Effect Of Prior Experience On Re-entry Commitment: Motives Fsupporting

confidence: 66%

Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies

2018

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“…Betrayal indicates that, compared to the betrayed party, the betrayer acts in a way that favors more only his/her own interests, regards his/her needs as more important, and cares very little about or views superficially the relationship that they have (Fitness, 2001). Although anyone entering a relationship runs the risk of betrayal, the incidence of betrayal is even more profound in cross-border inter-firm relationships because of: (a) the large geographical and psychological distance between sellers and buyers; (b) the multiplicity, heterogeneity, and volatility of the international business environment; (c) the variable intensity of competitive pressures confronted; and (d) the dynamic and unpredictable changes that take place in international markets (Leonidou, Kaminarides, & Panayides, 2007;Samiee, Chabowski, & Hult, 2015;Sousa & Tan, 2015).…”

Section: Introductionmentioning

confidence: 99%

Betrayal in international buyer-seller relationships: Its drivers and performance implications

Leonidou

Aykol

Fotiadis

et al. 2017

Journal of World Business

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Although betrayal is a common phenomenon in inter-organizational cross-border relationships, the pertinent literature has remained relatively silent as regards its examination. However, the effects of betrayal are both long-lasting and destructive, and therefore an in-depth investigation of the factors that are driving it, as well as its performance outcomes, is considered necessary. Using a sample of 262 exporters, we confirm that betrayal in their relationships with foreign buyers is significantly and positively affected by relational uncertainty, opportunism, inter-partner incompatibility, relational distance, and conflict. The harmful effect of most of these factors on betrayal becomes stronger in the case of high foreign environmental uncertainty and high foreign market dynamism. The importer’s betrayal actions are in turn responsible for reducing relational performance. In fact, this negative association between importer’s betrayal and relational performance is more evident in relationships characterized by low dependence levels and low degrees of tolerance by the exporter

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“…The experience level of the firm influences the relative importance of different country characteristics in determining location patterns. CD moderates the impact of the internal strategic fit and international performance on a firm's exit decision (Sousa & Tan, 2015).…”

Section: Host Country Factorsmentioning

confidence: 99%

“…Firms reduce and contract investments when encountering high levels of risk (Blake & Moschieri, 2014). Market exit decisions result from lower-cost production and new market opportunities (Berry, 2010), operational flexibility (Fisch & Zschoche 2012), and strategic misfit and poor international performance (Sousa & Tan, 2015).…”

Section: Foreign Divestment (Fd)mentioning

confidence: 99%

The Role of Rivals in Foreign Divestments of International Healthcare Systems

Hildebrand

Ito

2018

Proceedings

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I hold deep appreciation and indebtedness to the Committee members who selflessly volunteered their resources, time, contacts, wisdom, and experiences to ensure the academic rigor and theoretical contribution of the dissertation. Thank you especially to Prof. Kiyohiko Ito, the Chair, for sharing the vision of the research and his tireless help in turning it into a reality from helpful comments on early drafts to his enlightened sanity checks that led to this dissertation's completion. I also thank Prof. John Butler, Chair of the Department of Management and sterling example of a Soldier (U.S. Marine)-Scholar, who as a combathardened veteran humbly bravely leads by example and readily shares his love of learning. I extend my warmest gratitude to my grandmothers Eleanor Holbye Thorson and Verna Lofquist Hildebrand who both crossed the veil while I was in Hawaii and who were great champions for education and personal growth. I also hold in appreciation my parents, brother, friends, and unexpected others who helped me on this journey to complete the process with ease and grace.

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Exit from a Foreign Market: Do Poor Performance, Strategic Fit, Cultural Distance, and International Experience Matter?

Cited by 40 publications

References 83 publications

Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies

Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies

Betrayal in international buyer-seller relationships: Its drivers and performance implications

The Role of Rivals in Foreign Divestments of International Healthcare Systems

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