Wait-and-see strategy: Risk management in the internationalization process model

Clarke, James E.; Liesch, Peter W.

doi:10.1057/s41267-017-0110-z

Cited by 73 publications

(56 citation statements)

References 69 publications

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“…Prior research in international business has mostly explained the choice of international locations as a decision based on differences in factor endowments and environmental characteristics between foreign countries and the home country (e.g., Brouthers, Brouthers, & Werner, ; Buckley & Casson, ; Hennart, ; see Kim & Aguilera, for a review) without taking into account individual decision makers' predispositions and perceptions (Aharoni et al, ; Clarke & Liesch, ; Nielsen & Nielsen, ). Maitland and Sammartino (, p. 736) regret that, despite acknowledging the assumption of bounded rational decisions, all internationalization schools “… are largely silent on the individual manager's role in shaping firm‐level market scanning, information collection and analysis processes”.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Maitland and Sammartino (, p. 736) regret that, despite acknowledging the assumption of bounded rational decisions, all internationalization schools “… are largely silent on the individual manager's role in shaping firm‐level market scanning, information collection and analysis processes”. Accordingly, internationalization literature has received increasing criticism for its omission of and the lack of microfoundations and behavioral theorizing (Aharoni et al, ; Buckley et al, , ; Clarke & Liesch, ). A number of scholars have called for more research on individual perceptions to advance theorizing on the microfoundations of internationalization and the role of distance (e.g., Ambos & Håkanson, ; Dow, ; Zaheer, Schomaker, & Nachum, ).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…A number of scholars have called for more research on individual perceptions to advance theorizing on the microfoundations of internationalization and the role of distance (e.g., Ambos & Håkanson, 2014;Dow, 2017;Zaheer, Schomaker, & Nachum, 2012). But so far, only a few studies (Bingham & Eisenhardt, 2011;Buckley et al, 2007Buckley et al, , 2018Chittoor, Aulakh, & Sougata, 2018;Clark et al, 2018;Collinson & Houlden, 2005;Fabian, Molina, & Labianca, 2009;Maitland & Sammartino, 2015b;Mataloni, 2011;Park & Harris, 2014) have adopted a microfoundations lens to empirically investigate managerial perceptions and decision-making in internationalization.…”

Section: The Microfoundations Perspective In Internationalizationmentioning

confidence: 99%

“…While most companies still seem to strategize in a global economy, policy has recently experienced a backlash as we see more and more countries electing nationalistic governments who seek to protect the local economy and erect trade barriers (Cuervo‐Cazurrra, Mudambi, & Pedersen, ; Ghemawat, ). This de‐globalization trend pushed many firms to revise their international expansion decisions or to revert to wait‐and‐see strategies (Clarke & Liesch, ; Kobrin, ). For example, “almost one in ten German companies in the UK plan to respond to Brexit by shifting investments to other EU states even as the terms of the UK's departure are not yet known” (Financial Times, ).…”

Section: Introductionmentioning

confidence: 99%

“…Our research approach provides important insights into managers' risk and return perceptions of locations and their decision heuristics (Bingham & Eisenhardt, 2011;Buckley et al, 2007;Clarke & Liesch, 2017;Maitland & Sammartino, 2015b). We conducted the discrete choice experiments in 2013 (in a globalizing world) and 2017 (in a de-globalizing world) allowing us to address the question how managerial perceptions and their decisions change over time.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

Ambos

Cesinger

Eggers

et al. 2019

Global Strategy Journal

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Research Summary Our understanding of how managers take international location decisions is still scarce. Building on the microfoundations view, we explore managers' perceptions of risk and return in a discrete choice experiment with 2,618 decisions in 2013 (a globalizing world) and 2017 (a de‐globalizing world). While managerial perceptions vary over time due to economic and political changes, such as the current de‐globalization trend, decision heuristics remain remarkably stable: locations perceived as least risky offer the highest expected returns. We also find that distance is a good proxy for managerial perceptions. Investigating the microfoundations of decision‐making we show that international experience, risk‐taking propensity, and shareholder status affect heuristics. In sum, our study provides novel insights into the microfoundations of location decisions and extends the behavioral perspective on internationalization. Managerial Summary While many researchers in the field of international business and global strategy have studied internationalization, surprisingly few of them put the actual decision maker in the spotlight. This study investigates the decision heuristics of managers who are confronted with international location decisions. We show that their perceptions of risk and return in the context of a globalizing world (in 2013) and in the context of a de‐globalizing world (in 2017) vary. However, the underlying heuristic—locations that are perceived as least risky offer the highest expected returns—remains stable. Our study also indicates that distance is a good proxy for managerial decisions and that managers' international experience, risk‐taking propensity, and shareholder status affect their decision‐making patterns.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%

Section: The Microfoundations Perspective In Internationalizationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

Ambos

Cesinger

Eggers

et al. 2019

Global Strategy Journal

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Eco‐environmental footprint and value chains of technology multinational enterprises operating in emerging economies

Attah‐Boakye

Adams

et al. 2022

Strategic Change

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Drawing from signaling theory and the multinational global value chain (GVC) literature, this study examines a critical question “does the adoption of eco‐friendly technology improve firm value?”. In addressing this question, we test a panel dataset for 633 technology multinational enterprises (TMNEs) operating in 15 emerging economies and covering 10 years from 2009 to 2019. This paper provides new insight into the increasing CO2 emission concerns, especially from the emerging economies and household consumption perspectives. Our study reveals that the adoption of eco‐friendly technology by TMNE's GVC operations will increase firm value and increase total environmental spending. Consequently, CO2 footprints in emerging countries will be reduced. Our findings are robust, controlling for several firm‐level and country‐level variables in our analysis. The practical, managerial, and policy implications of our study are discussed.

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International business entry modes and consumer ethnocentrism: A multi country perspective

Bose,

Chew,

Purohit

et al. 2024

Thunderbird Intl Bus Rev

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This study aims to assess the impact of changes in international business modes on consumer ethnocentrism. The study utilizes a quantitative research approach and is theoretically grounded in the resource‐based view. Data was collected from Bangladesh, China, India, and Malaysia using the consumer ethnocentrism tendencies scale (CETSCALE), and analyzed using quantitative methods. The results indicate that changes in international entry modes have an impact on the degree of consumer ethnocentrism. Across all countries studied, the highest level of consumer ethnocentrism was found for imported products, and this degree and intensity decreased when the entry modes changed from importing to joint venturing and FDI. This study contributes to the literature on both international business and consumer behavior by integrating the two fields, resulting in a robust theoretical contribution. The findings also suggest that the appropriate IB mode can act as a resource.

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Wait-and-see strategy: Risk management in the internationalization process model

Cited by 73 publications

References 69 publications

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

Eco‐environmental footprint and value chains of technology multinational enterprises operating in emerging economies

International business entry modes and consumer ethnocentrism: A multi country perspective

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