Understanding Earliness of Internationalization and Its Impact on Postentry Geographic Diversity of International Young Ventures

2018 ◽  
Vol 26 (2) ◽  
pp. 62-79 ◽  
Author(s):  
Aiqi Wu ◽  
Lianxi Zhou
Keyword(s):  
Market Entry ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Strategic Flexibility ◽  
International Expansion ◽  
Temporal Dimension ◽  
Geographic Diversity ◽  
Strategic Factors ◽  
Entry Timing ◽  
And Performance

Early and rapid internationalization has emerged as an established phenomenon of research, yet several fundamental issues remain to be studied. In this research, the authors aim to analyze the link between earliness of internationalization—a temporal dimension of foreign market entry—and the geographic diversity of international expansion, as well as the contingent nature of the relationship. They test their hypotheses with empirical data collected in a survey among international young ventures in China. The results show that while earliness of internationalization does not directly lead to the geographic diversity of a venture's international expansion, its impact becomes salient as the venture gains international legitimacy and strategic flexibility. Furthermore, the moderating effects of international legitimacy and strategic flexibility vary according to the type of the venture's first foreign market (regional vs. global). This research advances the knowledge not only of the important role of early foreign market entry but also of the strategic factors for paths created by accelerated internationalization. It potentially contributes to the emergent research on foreign market entry timing/speed of internationalization and performance implications of international young ventures.

https://edoi.org/orp/index.php/joprem/article/view/3

2020 ◽  
pp. 31-54
Author(s):  
Chi Hoang L. ◽  
Keyword(s):  
Human Resources ◽  
Market Entry ◽  
Transaction Cost Economics ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Joint Control ◽  
It Capabilities ◽  
Marketing Efficiency ◽  
Performance Effects ◽  
And Performance

The goal of this paper is to conduct a detailed review of research on foreign market entry alliances mediated by information technology (IT). This paper offers the conceptual structure of cross- border IT interactions and performance effects that is technically aware. It combines resource-based view (RBV) viewpoints and transaction cost economics (TCE), arguing that developing IT interface capabilities improves the commercial efficiency by enhancing interfirm relationship governance in the host location of the foreign partner. More relevant modulators are often known as IT-related threats and contextual limitations. It proposes concepts of IT capabilities, enhanced IT interfirm governance and improved IT marketing efficiency. Building from RBV and TCE, IT capital, relevant human resources, and IT integration, the capacity of companies to better manage the connection through joint control, interfirm collaboration, organizational formalization and hybrid centralisation is improved by the combination of RBV and TCE. These advantages contribute to increased marketing efficiency at the host place upstream and downstream. IT capabilities also lead to mitigating potential contextual constraints and threats. The paper presents a range of research ideas based on theory and literature that will be empirically evaluated in future studies. Top managers of companies currently or intend to enter into foreign market entry partnerships should consider carefully improving inter-company IT capabilities with regard to hardware and software preparation, human resources and organizational assets.

scholarly journals Perceptions of justice and organisational commitment in international mergers and acquisitions

2017 ◽  
Vol 34 (5) ◽  
pp. 582-605 ◽  
Author(s):  
Emanuel Gomes ◽  
Kamel Mellahi ◽  
Sunil Sahadev ◽  
Amy Harvey
Keyword(s):  
Mergers And Acquisitions ◽  
Market Entry ◽  
Strong Association ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Organisational Commitment ◽  
Entry Modes ◽  
Content Type ◽  
Cross Border ◽  
And Performance

Purpose Although there is substantial and accumulating evidence on the link between market entry modes and performance, evidence regarding their impact on employee’s perceptions and thereby their commitment is scarce. This is more so in mergers and acquisitions (M&As) where employee’s commitment has a significant impact on post-entry performance. The purpose of this paper is to examine the association between perceptions of justice and organisational commitment in cross-border M&As. Design/methodology/approach The authors draw on market entry and M&As’ literature and studies on the link between perception of justice and commitment to develop the hypotheses. The authors test the hypotheses with survey data from a merger of two culturally different partners – British and Japanese. A total of 128 responses were received, out of a sample of 151 non-managerial employees within the firm. Findings The results show a strong association between employees’ perceptions of justice during the merger and commitment to the new organisation. Surprisingly, the results do not support the widely reported interaction effects between different organisational justices and employees’ commitment. Research limitations/implications Obtaining data from a single M&A is a potential limitation of this study. Practical implications The study underscores the importance of post-market entry. The results suggest that particular attention needs to be paid to the way employees of the acquired firm are treated during their interactions with their counterparts. Originality/value The link between market entry and performance is well documented. However, little progress has been made in understanding the antecedents/factors that influence commitment in foreign market entry and in particular cross-border M&As. This study helps close this gap.

Whose Culture Matters? Near-Market Knowledge and Its Impact on Foreign Market Entry Timing

2002 ◽  
Vol 39 (3) ◽  
pp. 350-365 ◽  
Author(s):  
Debanjan Mitra ◽  
Peter N. Golder
Keyword(s):  
Market Entry ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Economic Knowledge ◽  
Strategic Choices ◽  
Market Knowledge ◽  
Entry Timing ◽  
The Impact ◽  
Market Entry Timing ◽  
Entry Decisions

Market entry decisions are some of a firm's most important strategic choices. Although some recent studies have begun to consider the impact of learning and experience on foreign market entry, no study has examined the impact of a firm's own operations in similar markets on subsequent entry decisions. In this study, the authors introduce the concept of near-market knowledge to reflect the knowledge firms generate by operating in markets that are culturally and economically similar. The authors compile extensive data on the complete foreign market entries of 19 multinational firms. They use a hazard model on 722 entry observations to evaluate the impact of the dynamic near-market knowledge measures and other economic and cultural variables on foreign market entry timing. In contrast with much previous research, the authors find that cultural distance from the domestic market is not a significant factor. However, the authors find significant effects for the new measures of near-market cultural and economic knowledge and for several other economic variables as well. The authors discuss the implications of these findings for further research and management practice.

Management of foreign market entry

1992 ◽  
Vol 1 (3) ◽  
pp. 2 ◽  
Author(s):  
Jan Johanson ◽  
Jan-Erik Vahlne
Keyword(s):  
Market Entry ◽  
Foreign Market ◽  
Foreign Market Entry
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