FDI motives, market governance, and ownership choice of MNEs: A study of Malaysia and Thailand from an incomplete contracting perspective

Yu, Jisun; Lee, Seung Hyun; Han, Kunsoo

doi:10.1007/s10490-015-9412-5

Cited by 18 publications

(17 citation statements)

References 75 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To examine the extent to which a focal MNE depends on the local market for sales, we measured the ratio of the MNE’s domestic sales to its entire sales revenue in a given year, a measure used in previous studies (Nachum & Zaheer, 2005; Yu, Lee, & Han, 2015).…”

Section: Methodsmentioning

confidence: 99%

Bending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies

Lee

2019

Business & Society

Self Cite

View full text Add to dashboard Cite

We investigate what determines a multinational enterprise’s (MNE) propensity to engage in lobbying and bribing in host countries where the overall institutional development for market exchanges is insufficient, and thus, their governance systems are relatively weak. We extend the current literature on institutional strategies by theorizing and showing the persistent and significant impacts of home country institutions on an MNE’s choice of influencing activities to address institutional constraints overseas. More specifically, our results demonstrate that the MNEs from a home country with a stronger governance system are less involved in bribery, but have a higher tendency to lobby in transition economy countries, which have been characterized by relatively weaker institutional development, particularly in the area of governance. This tendency still holds even when these MNEs rely more on the local market for sales. We draw theoretical and practical implications from these observations.

show abstract

Section: Methodsmentioning

confidence: 99%

Bending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies

Lee

2019

Business & Society

Self Cite

View full text Add to dashboard Cite

show abstract

“…2016), incomplete contracting perspective (Yu et al. 2015), first‐mover advantage theory (Fuentelsaz et al. 2020) and upper‐echelon theory (Dutta et al.…”

Section: Determinants Of Equity Ownership Decisions: Theoretical Frammentioning

confidence: 99%

Determinants of Equity Ownership Stake in Foreign Entry Decisions: A Systematic Review and Research Agenda

Chhabra

Popli

2021

Int J Management Reviews

View full text Add to dashboard Cite

In international business (IB), the level of equity ownership adopted by a firm is an important decision. In this study, we review and synthesize the findings of 105 empirical studies published in prominent IB and management journals on the determinants of equity ownership stake in foreign investment decisions, published between 1991 and 2020. Three primary theoretical lenses ‒ organizational learning perspective, transaction cost economics and institutional perspective – are adopted to catalogue and synthesize the existing literature. We find that, despite the proliferation of IB studies on antecedents of level of equity ownership decisions, many unanswered questions remain. We also find that theoretical fault lines impede progress in this research stream. Based on the literature review, we suggest a research programme that includes accounting for the behavioural view of decision‐making in the organization, shifting from an atomistic perspective to a network perspective of the firm, having a better understanding of the process of internationalization and considering industry heterogeneity as well as the host country's characteristics.

show abstract

“…As suggested by Li et al (2013), MNCs and EMNCs both need to develop market–political ambidexterity, including market capabilities and non-market capabilities, during institutional development. Thus, including this factor is useful for explaining multinational firms’ activities in a more vibrant environment, where the context of a rapidly changing institutional environment has continued to be the focus of exploration (Yu et al, 2015; Wright et al, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

Competitive Dynamics Between Multinational Companies and Local Rivals in Emerging Markets

Al–Kwifi

Farha

Zaraket

2020

FIIB Business Review

View full text Add to dashboard Cite

Multinational Companies from Emerging Economies (EMNCs) have become key players in the global economy. EMNCs have started to operate in highly dynamic, competitive environments where they are faced with competition from multinational companies (MNCs) from developed economies. This study applied Mutlu et al.’s (2015) awareness–motivation–capability (AMC) framework to the airline industry to investigate how EMNCs outperform MNCs. The development of each round of Mutlu et al.’s framework was tested using secondary data sources that cover 16 years, from 2001 to 2016. A fourth round, relating to the determination of ‘who will be the market leader’, was added to the framework and tested. The findings demonstrate that firms’ awareness and capabilities evolve in each round to develop the competitive advantages required to enhance their market position. The complex nature of competition requires firms to analyse information constantly to define key influential factors and to build essential capabilities and resources to initiate an action strategy quickly. From a managerial perspective, it is important for managers to build a comprehensive view of the competition and understand how this competition is evolving over time, to develop capabilities, pursue new opportunities and predict competitors’ responses.

show abstract

FDI motives, market governance, and ownership choice of MNEs: A study of Malaysia and Thailand from an incomplete contracting perspective

Cited by 18 publications

References 75 publications

Bending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies

Bending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies

Determinants of Equity Ownership Stake in Foreign Entry Decisions: A Systematic Review and Research Agenda

Competitive Dynamics Between Multinational Companies and Local Rivals in Emerging Markets

Contact Info

Product

Resources

About