Ownership and market entry mode choices of emerging country multinationals in a transition country: evidence from Turkish multinationals in Romania

Abstract

Drawing upon key arguments of prevailing theoretical perspectives in international business, this study aims to explain the ownership and market entry strategies of emerging country multinational enterprises (MNE) in a transition country. To this end, the Turkish MNEs' ownership (joint venture versus wholly owned subsidiary) and entry mode (greenfield versus acquisition) choices for their affiliates in Romania are essentially investigated based on a number of selected case studies. Using qualitative data from semi-structured interviews, this study indicates that a single perspective alone cannot adequately explain the Turkish MNEs' ownership and entry mode strategies for their affiliates in Romania. Aufbauend auf Schlüsselargumenten der vorherrschenden theoretischen Perspektiven im internationalen Geschäft, zielt diese Studie auf die Erklärung der Eigentums-und Markteintrittsstrategien von multinationalen Unternehmen (MNU) noch unterentwickelter Länder in einem Transformationsland. Zu diesem Zweck wurde hauptsächlich die Wahl des Eigentumsverhältnisses (Joint Venture versus hundertprozentige Tochtergesellschaft) und des Eintrittsmodus (Greenfield versus Akquisition) türkischer MNU für ihre Tochtergesellschaften in Rumänien, basierend auf einer Reihe von ausgewählten Fallstudien, untersucht. Unter Einbezug qualitativer Daten aus semistrukturierten Interviews, zeigt diese Studie, dass eine einzige Perspektive nur inadäquat die Eigentums-und Eintrittsmodusstrategien der türkischen MNU für ihre Tochtergesellschaften in Rumänien erklären kann.

Exploring the Role of Ownership in International Entrepreneurship: How does Ownership Affect Internationalisation of Polish Firms?

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“…Firstly, ownership structure affects internationalisation, especially in two poles, namely foreign versus domestic ownership (Anil, Tatoglu, & Ozkasap, 2014;Larimo & Arslan, 2013), however, ownership can affect internationalisation in different ways depending on the various ownership-stake-related aspects, thus these issues should be under careful empirical investigations. This paper tries to verify basic prior results linking ownership structure and internationalisation, but taking Polish economy as an example of emerging markets.…”

A born global’s radical, gradual and nonlinear internationalization: A case from Belarus

“…Moreover, according to Nowiński and Rialp (2013: 192), there is a deficit of "studies concerning early internationalization of SMEs from transition economies and particularly from Central and Eastern European (CEE) countries". Also, only a few authors have studied if the ability of internationalizers from emerging economies to operate successfully in their home country's unfavourable business environment can help them to operate elsewhere (Anil/Tatoglu/Ozkasap 2014). Thus, it is especially interesting to study Belarusian born globals' internationalization as, due to a complicated political/economic situation (Welter/Smallbone/Slonimski/Slonimska 2008;1 In defining born globals, we follow Kuivalainen/Sundqvist/Servais (2007) that they achieve at least a 25% export share and enter culturally distant foreign countries during the first three years since establishment, Madsen and Servais (1997: 579) that they "derive significant advantages from /…/ the sale of outputs to multiple countries/continents right from their legal birth" and Coviello (2015) and Knight and Cavusgil (2015) that they mainly prefer exporting.…”

Location Determinants of Portuguese FDI in Poland

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“…A JV is a shared equity relationship, in contrast to a whollyowned subsidiary, which represents full control over foreign business entities and 100 per cent of ownership. In addition to the level of control, the company has to decide on the mode of establishment: acquisition of a local company or building a new plant (greenfield project) (Anil et al, 2014).…”