The divestment-reinvestment sequence in foreign countries: The role of relational vs. transactional ownership

Mariotti, Sergio; Marzano, Riccardo; Piscitello, Lucia

doi:10.1016/j.lrp.2023.102306

Cited by 8 publications

(10 citation statements)

References 123 publications

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“…Research on de-internationalization and re-internationalization mostly focuses on multinational companies and suggests that internationalization processes may be more complex than explained by the sequential approach of the Uppsala model. Recent studies point to the existence of cycles and waves, in which multinationals can increase, decrease or re-increase the intensity and scope of their international activities, but little is known about the characteristics of such cycles and waves as well as their underlying triggers in the family business context (Arregle et al, 2021;Debellis et al, 2021a, b;Mariotti et al, 2023).…”

Section: The Uppsala Model and The Concepts Of Internationalization D...mentioning

confidence: 99%

“…Research on family firm internationalization shows that their heterogeneity shapes internationalization processes and influences foreign market decisions (Arregle et al, 2017(Arregle et al, , 2021. Not all family firms are the same, and not all pursue similar internationalization strategies (Aguzzoli et al, 2021;De Massis et al, 2018;Mariotti et al, 2023). The traditional, stepwise internationalization process of family firms can be attributed to a multiplicity of factors at the organizational, family, individual and environmental levels.…”

Section: The Rbv and The Internationalization Of Family Firmsmentioning

confidence: 99%

“…Although previous research has made progress in understanding the international expansion of family firms, it has largely focused on the antecedents of internationalization processes. Extant literature has implicitly assumed that family firms maintain or increase their international presence once they decide to develop in foreign markets, without capturing family business exit, divestments, de-internationalization and/or re-internationalization patterns (Arregle et al, 2021;Debellis et al, 2021a, b;Mariotti et al, 2023). This research gap limits our understanding of how family firms evolve in their international commitment.…”

Section: Family Firms' International Cycles and Wavesmentioning

confidence: 99%

“…Despite the proliferation of studies on family firm internationalization and the application of several theoretical perspectives, it is surprising to observe that there is a lack of focus on nonreversible internationalization processes. More recently, several scholars have questioned the predominance of linear internationalization pathways by pointing to the existence of cycles and waves that may also include stages of de-internationalization and reinternationalization (Aguzzoli et al, 2021;Chen et al, 2019;Ganotakis et al, 2022;Mariotti et al, 2023;Surdu et al, 2018Surdu et al, , 2019. In certain situations, and especially if we consider the current changed scenario due to the effects of the pandemic (Calabr o et al, 2022) and the geopolitical frictions in different parts of the world that are causing disruptions in global value chains, companies can choose to de-internationalize by reducing the intensity and scope of their international activities or by withdrawing from foreign markets before they decide to re-internationalize by increasing their international activities or by re-entering foreign countries.…”

Section: Introductionmentioning

confidence: 99%

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Business families do it differently! Navigating cycles and waves of family firm internationalization

Calabrò

Mayrhofer

Valentino³

2023

IJEBR

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PurposeThis paper aims at extending the debate on family firm internationalization by identifying cycles and waves of their internationalization processes with a specific focus on de-internationalization and re-internationalization.Design/methodology/approachBuilding on the Uppsala model and the resource-based view, this study analyzes the cycles and waves of internationalization of 26 German family firms in the Chinese market. Semi-structured interviews with top managers of the selected case firms were conducted, and secondary sources were used to triangulate the collected data.FindingsThe findings highlight the heterogeneity of family firm internationalization processes. Indeed, some family firms follow the sequential approach of the Uppsala model, while others choose to de-internationalize and then re-internationalize their activities. Their cycles and waves of internationalization can be explained by internal and external triggers.Originality/valueThis article contributes to the family firm internationalization literature by investigating how family firm characteristics and environmental factors shape internationalization, de-internationalization and re-internationalization paths. The novel findings enrich theoretical assumptions on family firm internationalization and highlight their varying internationalization processes, which can be explained by firm-specific characteristics, notably their unique family resources and socioemotional wealth, and contextual factors.

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Section: The Uppsala Model and The Concepts Of Internationalization D...mentioning

confidence: 99%

Section: The Rbv and The Internationalization Of Family Firmsmentioning

confidence: 99%

Section: Family Firms' International Cycles and Wavesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Business families do it differently! Navigating cycles and waves of family firm internationalization

Calabrò

Mayrhofer

Valentino³

2023

IJEBR

View full text Add to dashboard Cite

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“…Market exits, also referred to as divestments or divestitures, are among the most critical decisions facing firms, as they influence current performance and also have significant implications for future strategies (Kolev, 2016; Sartor and Beamish, 2020; Mariotti et al , 2023). Prior studies have highlighted that multinational enterprises (MNEs) tend to exit foreign markets due to internal inefficiencies, different commitments, operational hurdles encountered in the host country and increased uncertainties in the external environment (Arte and Larimo, 2019; Kolev, 2016; Kuiken et al , 2020; Sartor and Beamish, 2020).…”

Section: Introductionmentioning

confidence: 99%

Market exit and re-entry in a volatile emerging economy: a case study of Yamaha motorcycles in Pakistan

Khan

Zahoor

Arslan

et al. 2023

MBR

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Purpose This study aims to understand the dynamics underpinning the exit and re-entry strategies adopted by multinational enterprises (MNEs) in an emerging market, Pakistan. Design/methodology/approach This study undertook an in-depth historical case study of Yamaha Motorcycles, which had initially entered Pakistan as a joint venture but had then exited and re-entered as a wholly owned subsidiary. Findings This study found that, despite its status as a market leader and one of the older players in the Pakistani market, changing market dynamics in the 2000s – especially the increased competition brought by more affordable (inexpensive) Chinese motorcycles and the weak enforcement of industrial policies – had pushed Yamaha Motorcycles to exit. Another factor that had contributed to its exit were differences in risk perception and strategies with its local joint venture partner (a Pakistani business group). Hence, both firm-level and institutional factors had played significant roles in Yamaha’s market exit. This study further found that re-entering in a wholly owned subsidiary operation mode had been beneficial for the firm, as it gained a significant market share due to its focus on innovation and on capturing a market niche, which had earlier not been its main focus. The findings also suggest that opportunity logics and multiple forms of learning can be important for a firm’s re-entry into a host market – such as experiential (i.e. learning from experience) and vicarious learning (i.e. learning from other organizations, including suppliers and competitors) in an emerging market context, in which institutions evolve amid political and policy uncertainty. Finally, this study found that exit and re-entry timing is an important factor for the development of competitive advantage in a host market. Originality/value This study is among the few to have investigated the exit and re-entry strategies of MNEs in emerging markets. The relatively short time during which Yamaha Motorcycles had been out of the market had benefited it on its re-entry, as the firm had been able to capitalize on its prior learning and ties to suppliers’ networks.

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The impact of research and development internationalisation on environmental, social and governance: Evidence from emerging market multinational enterprises

Li,

Luo

2024

Bus Strat Env

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People are increasingly aware of the extent to which enterprises either improve or harm social welfare, with a growing trend to use environmental, social and governance (ESG) indicators to evaluate and describe efforts in this area. However, most research has neglected multinational enterprises, especially the significant impact of the radical and leapfrogging internationalisation of emerging market multinational enterprises (EMNEs) on sustainable development. This study discusses ESG in the context of the research and development (R&D) internationalisation of EMNEs and uses microdata from Chinese listed manufacturing enterprises from 2010 to 2020. Employing a propensity score matching (PSM) method and difference‐in‐differences (DID) estimation, this study empirically tests the effect of R&D internationalisation on the ESG performance of Chinese enterprises and their boundary conditions. This study finds that R&D internationalisation positively impacts enterprises' ESG performance through two pathways: improving green innovation and the quality of information disclosure. Furthermore, the study confirms the heterogeneous effects of institutional factors. Institutional deficits between home and host countries, along with the nature of private equity in enterprises, effectively enhance the value of the internationalisation of R&D for EMNEs on ESG performance. This study expands the exploration of the antecedents of ESG in the context of internationalisation, enriches the research on the impact effect and boundary conditions of EMNEs' R&D internationalisation and provides practical insights for EMNEs to enhance their ESG through R&D internationalisation.

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The divestment-reinvestment sequence in foreign countries: The role of relational vs. transactional ownership

Cited by 8 publications

References 123 publications

Business families do it differently! Navigating cycles and waves of family firm internationalization

Business families do it differently! Navigating cycles and waves of family firm internationalization

Market exit and re-entry in a volatile emerging economy: a case study of Yamaha motorcycles in Pakistan

The impact of research and development internationalisation on environmental, social and governance: Evidence from emerging market multinational enterprises

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