Institutional forces in adoption of international joint ventures: Empirical evidence from British retail multinationals

Owens, Martin D.; Palmer, Mark; Зуева, А.М.

doi:10.1016/j.ibusrev.2013.01.002

Cited by 17 publications

(11 citation statements)

References 70 publications

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“…Other governance and expansion modes involve interaction and engagement with local market partners through mechanisms such as affiliations to voluntary chains or buying groups, joint ventures and franchising. Palmer et al, (2010) and Owens et al, (2013) suggest that whilst the joint venture approach is motivated by the desire to understand and conform to existing market norms of behaviour, it also provides the scope to negotiate and seek to influence existing norms.…”

Section: Governance Formsmentioning

confidence: 99%

Dissecting embeddedness in international retailing

2017

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Embeddedness, and its constituent types, has been employed as a conceptual framework to explain the processes of host market acculturation in retail internationalisation. The retail industry is not, however, a homogeneous business sector. Differences exist between retail sectors, retail formats and governance modes in how retail business models evolve and how a retail business operates in a market. These differing characteristics alongside the coercive, mimetic, and agency pressures arising from interactions amongst institutions, consumer market cultures and firms determine the emphasis placed upon different embeddedness types and how embeddedness occurs. Consideration of these factors allows us to "dissect" the generic embeddedness concept and gain a more nuanced understanding of the processes involved. A deeper understanding of the nature and process of embeddedness will support future studies using the concept across many economic sectors.

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Section: Governance Formsmentioning

confidence: 99%

Dissecting embeddedness in international retailing

2017

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“…Scholars used the institutional lens mainly to propose that establishing external legitimacy by adapting to the regulative, normative and cognitive rules of host environments in institutionally distant foreign markets is more significant in making FME decisions, than for instance, efficiency concerns (e.g., Makino, Isobe & Chan, 2004;Owens, Palmer, & Zueva-Owens, 2013). found that firms which embraced, and adapted to, changes in the formal institutions of Eastern European countries were able to both exploit and augment their resource base.…”

Section: Institutional Theory: Compliment or A Substitute To Tce And mentioning

confidence: 99%

“…Several scholars explored how the quality of institutions, as opposed to transactional concerns, influenced FMEM decisions. Highly restrictive host institutional environments are expected to motivate investors to opt for cooperative modes of entry to facilitate MNEs adaptation to local institutional contexts Owens et al, 2013;. Pervasiveness of corruption is associated with foreign firms' inability to establish legitimacy in the local market, leading to a higher likelihood of joint ventures over wholly-owned subsidiaries Rodriguez, Uhlenbruck & Eden, 2005).…”

Section: Institutional Theory: Compliment or A Substitute To Tce And mentioning

confidence: 99%

Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research

Surdu

Mellahi

2016

International Business Review

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This paper reviews the theoretical foundations of the equity based foreign market entry (FME) decisions literature. We analyse 1,055 academic FME papers published over four decades . We identify and analyse the theories that informed and guided FME research over time. Our review indicates that scholars have recently started to challenge some of the core assumptions of established theories, draw on and integrate insights from multiple theoretical perspectives which, in turn, generated a multiplicity of approaches for studying FME decisions and their performance outcomes. The paper discusses the explanatory power of the different theories, assesses the relevance of the different theoretical perspectives to our understanding of current FME phenomena and recommends directions for further research.

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“…Therefore, for internationalising SMEs, informal institutions emerge as an important factor for their strategies. Past researchers focusing on internationalisation strategies of MNEs have argued for choice of equity joint ventures in case of high differences in cognitive aspects of the institutions (e.g., Slangen van Tulder, 2009;Owens et al, 2013). In this context, it needs to be noted that MNEs are interested in achieving necessary productivity levels like other subsidiaries and also have the resources to invest in these aspects (Buckley, 2009;Buckley and Prashantham, 2016).…”

Section: Informal Institutional Distancementioning

confidence: 99%

Influences of cognitive dimensions on the collaborative entry mode choice of small- and medium-sized enterprises

Giudice

Arslan

Scuotto

et al. 2017

IMR

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Purpose-Our paper addresses internationalisation of small and medium-sized enterprises (SMEs) by specifically focusing on collaborative entry modes. Despite significant research done on market entry strategies of firms, the use of collaborative entry modes by SMEs during internationalisation has not received a lot of attention. We contribute to foreign market entry literature by analysing the influences of cognitive dimensions on collaborative entry mode choice (equity vs. non-equity modes) of SMEs in their international markets. Design/methodology/approach-We analyse the influences of cognitive dimensions on the choice between equity-based vs. non-equity-based collaborative entry modes. Our empirical sample consists of 345 Italian SMEs, where we used a questionnaire to collect the data. We use structural equation modelling (SEM) to analyse influences of factors like asymmetric information, informal institutional distance, time trends of country, perception of size and resources of potential host country partners, and perception of host country partners' power on this important market entry mode. Findings-Our results show that high informal institutional distance leads to preference of non-equity-based collaborative entry mode by Italian SMEs. We also find that positive time trends of the host country, positive perception of size and resource of the local partner, as well as the local partners' power leads to preference of equity-based collaborative entry mode by Italian SMEs. Originality/value-This study focuses on an ignored aspect of market entry strategies, i.e., equity vs. non-equity collaborative entry mode choice of SMEs. We use insights from resource based view and cognitive dimensions literature, to address the influences of five cognitive dimensions on the collaborative entry mode choice of SMEs during their internationalisation.

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Institutional forces in adoption of international joint ventures: Empirical evidence from British retail multinationals

Cited by 17 publications

References 70 publications

Dissecting embeddedness in international retailing

Dissecting embeddedness in international retailing

Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research

Influences of cognitive dimensions on the collaborative entry mode choice of small- and medium-sized enterprises

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