Host environmental uncertainty and equity-based entry mode dilemma: The role of market linking capability

Equity-based entry modes of the Greater Chinese Economic Area's foreign direct investments in Vietnam

“…Second, the transaction costs theory included in the internalization factor of Dunning's eclectic paradigm explains costs of various entry modes selected (Anderson & Gatignon, 1986;Erramilli & Rao, 1993;Pan, 1996;Wei, Liu, & Liu, 2005). According to the transaction costs theory, in case of significant environmental uncertainty, a firm must select a WOS since an EJV is less efficient in such situations (Tseng & Lee, 2010). Generally speaking, the transaction costs theory includes two views on managing entry modes: non-ownership control mechanisms (i.e., licensing and franchising) and ownership control mechanisms (i.e., EJVs and WOSs) (Brouthers & Hennart, 2007;Demirbag et al, 2009).…”

Entry mode choices of rapidly internationalizing terminal operators:

“…Traditional IB theories argue that, as the entry choice is affected by the firm's uncertainty over the characteristics of the country entered (Kogut and Singh, 1988), the familiarity with specific overseas markets drives firms to more aggressive strategies (Tseng and Lee, 2010). Conversely, internationalizing firms are proved to limit their exposure in the foreign subsidiary when lacking ad-hoc market knowledge (Erramilli and Rao, 1990).…”

“…In particular, prior studies on foreign entry mode demonstrate that political and institutional factors shape the firm's internationalization process when entering overseas markets (Kwon and Konopa, 1992;Tseng and Lee, 2010). The quality of the regulatory setting in the host country (that is, the ability of host government to implement sound policies and regulations) triggers firms to a higher commitment (Kim and Hwang, 1992).…”

Revisiting the external impact of MNCs: An empirical study of the mechanisms behind knowledge spillovers from MNC subsidiaries

“…For instance, research in strategic management (e.g., Chandler, 1962;D'Aveni, 1994;Porter, 1980) as well as studies of host-country effects from FDI (Blomströ m & Kokko, 1998) has suggested that a competitive environment influences the strategy pursued by firms as well as a firm's position within the industry (Porter, 1990;Tseng & Lee, 2010). When an MNC subsidiary operates in a local business environment that is characterised by high competitive pressure, changes in the behaviour of local firms can be expected because firms in general, and competitors in particular, will react to the introduction of a new innovation by the foreign subsidiary.…”