scholarly journals The Determinants Of Foreign Location And Market-Entry Mode By Multinational Banks: A Simultaneous Approach

2016 ◽  
Vol 32 (3) ◽  
pp. 883-902
Author(s):  
Samia Belaounia ◽  
Tawhid Chtioui ◽  
Mehdi Nekhili
Keyword(s):  
Host Country ◽  
Market Entry ◽  
Location Choice ◽  
Entry Mode ◽  
Simultaneous Approach ◽  
Factors Associated ◽  
Multinational Banks ◽  
Representative Office ◽  
The Impact ◽  
Office Location

The study aims to explain the determinants of banks’ choices of location of overseas activities and of market-entry mode (subsidiary, branch and representative office). Location of overseas activities and market-entry mode are considered as simultaneously determined. The determinants are based on the factors associated with the characteristics of the parent bank and host country. A 3SLS model is used to estimate these determinants. Based on sample of 63 banks from 18 countries in 2004, the results show that foreign location and market-entry mode are governed by the characteristics of both the host country and the parent bank. Our results also provide some answers about the impact of entry mode on location choice, and vice versa.

The impact of globalization on the performance of Banks in South Africa

2016 ◽  
Vol 26 (4) ◽  
pp. 517-542 ◽  
Author(s):  
Fadzlan Sufian ◽  
Fakarudin Kamarudin
Keyword(s):  
South Africa ◽  
Host Country ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Bank Performance ◽  
Content Type ◽  
Multinational Banks ◽  
Dynamic Panel Regression ◽  
The Impact

Purpose This paper aims to provide empirical evidence for the impact globalization has had on the performance of the banking sector in South Africa. In addition, this study also investigates bank-specific characteristics and macroeconomic conditions that may influence the performance of the banking sector. Design/methodology/approach The authors use data collected for all commercial banks in South Africa between 1998 and 2012. The ratio of return on assets was used to measure bank performance. They then used the dynamic panel regression with the generalized method of moments as an estimation method to investigate the potential determinants and the impact of globalization on bank performance. Findings Positive impact of greater economic integration and trade movements of the host country, while greater social globalization in the host country tends to exert negative influence on bank profitability. The results show that banks originating from the relatively more economically globalized countries tend to perform better, while banks headquartered in countries with greater social and political globalizations tend to exhibit lower profitability levels. Originality/value An empirical model was developed that allows for the performance of multinational banks to depend on internal and external factors. Moreover, unlike the previous studies on bank performance, in this empirical analysis, we control for the different dimensions of globalizations while taking into account the origins of the multinational banks. The procedure allows us to test for the home field, the liability of foreignness and global advantage hypotheses to deduce further insights into the prospects of banking across borders.

CEO characteristics and SME foreign market entry mode choice

2016 ◽  
Vol 33 (2) ◽  
pp. 246-275 ◽  
Author(s):  
Katharina Laufs ◽  
Michael Bembom ◽  
Christian Schwens
Keyword(s):  
Host Country ◽  
Market Entry ◽  
Mode Choice ◽  
Entry Mode ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Content Type ◽  
Entry Mode Choice ◽  
Foreign Market Entry Mode ◽  
Ceo Characteristics

Purpose – Using arguments from the upper echelons perspective this paper aims to examine the impact of CEO characteristics on small and medium-sized enterprises’ (SMEs’) equity foreign market entry mode choice and how these associations are jointly moderated by geographic experience of the firm and host-country political risk. Design/methodology/approach – The empirical analysis draws on data gathered from German SMEs testing triple-interaction effects between CEO’s age, firm tenure and international experience, geographic experience of the firm (organizational level), and host-country political risk (environmental level). Findings – Empirical findings validate that the influence of CEO’s age and firm tenure on SME foreign market entry mode choice varies by managers’ level of managerial discretion (i.e. latitude of action) as determined by the SME’s geographic experience and the level of political risks prevailing in the foreign market. Practical implications – Empirical findings help SME owners and managers to understand how CEO’s age and firm tenure are related with individual’s risk-taking behavior and information-processing demands and how these contingencies vary by the context in which the individual CEO is nested. Originality/value – This study contributes to the growing body of literature focussing on SME foreign market entry mode choice by emphasizing the important role of CEOs in the decision to internationalize. More specific, this study contributes by an examination of the interactive effect of CEO’s age, firm tenure and international experience, geographic experience of the firm and host-country political risk and, therefore, emphasizes the context and boundary conditions under which the association between CEO characteristics and foreign market entry mode choice is more or less pronounced.

scholarly journals Internationalisation processes: an analytical framework

2003 ◽  
Vol 7 (2) ◽  
pp. 137-156 ◽  
Author(s):  
Sérgio Fernando Loureiro Rezende
Keyword(s):  
Host Country ◽  
Market Entry ◽  
Empirical Studies ◽  
Entry Mode ◽  
Institutional Arrangement ◽  
Foreign Market ◽  
Analytical Framework ◽  
Foreign Market Entry ◽  
Foreign Markets ◽  
Subsidiary Development

In this article we propose a framework for analysing internationalisation processes, manifested through a sequence of servicing modes. A servicing turn is, in turn, the institutional arrangement whereby firms operate in foreign markets. The framework borrows conceptual notions from the literature on foreign market entry, internationalisation and subsidiary development. Three implications for empirical studies are subsequently suggested. First, it is argued that internationalisation processes should be analysed in light of intra and inter-organisational relationships embedded in distinct spatial and temporal contexts. Secondly, the framework takes into account not only incremental but also discontinuous internationalisation processes. Thirdly, it is proposed that internationalisation processes are endless phenomena and, therefore, should consider sequences of servicing modes that take place in the foreign market where the entry mode is originally embedded as well as in foreign markets reached from the initial host country.

scholarly journals Research on the Location Choice of Chinese Enterprises’ Overseas Investment under the Motivation for Seeking natural resources in Host Country

2020 ◽  
Vol 206 ◽  
pp. 01001
Author(s):  
Yuting Wang
Keyword(s):  
Natural Resources ◽  
Host Country ◽  
Location Choice ◽  
Belt And Road Initiative ◽  
Chinese Enterprises ◽  
Resource Endowment ◽  
Belt And Road ◽  
Overseas Investment ◽  
The Impact ◽  
The Belt And Road

Since the “Belt and Road” initiative was put forward in 2013, China’s overseas investment has achieved rapid development. As a country with high energy consumption, China’s demand for the host country’s natural resources such as iron ore and fuel is increasing. The impact of motivation for seeking natural resources on the location choice of Chinese enterprises’ overseas investment has also received extensive attention. This paper selects the overseas investment records of Chinese companies in 40 countries from 2007 to 2017 as a sample. And this paper uses the conditional logit model to explore the impact of the host country’s natural resources on the location choice of Chinese enterprises’ overseas investment with different ownerships under the “Belt and Road” initiative. The study found that the natural resource endowment of the host country has a significant positive impact on the location choice of Chinese enterprises’ overseas investment. And it has a stronger promotion effect on the overseas investment of Chinese state-owned enterprises. The “Belt and Road” initiative has significantly improved the role of the host country’s natural resource endowment in the location choice of China’s non-state-owned enterprises’ overseas investment.

scholarly journals The Impact of Market-related Factors on the Choice of Foreign Market Entry Mode by Service Firms

2016 ◽  
Vol 7 (1) ◽  
pp. 34-52
Author(s):  
Tadas Šarapovas ◽  
Maik Huettinger ◽  
Domas Ričkus
Keyword(s):  
Market Entry ◽  
Entry Mode ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Service Firms ◽  
Entry Modes ◽  
Related Factors ◽  
Service Companies ◽  
The Impact ◽  
Foreign Market Entry Mode

The topic of internationalization has received an increased amount of attention due to globalization and growing amounts of international trade. One of the most important factors for the success of foreign market operations is the choice of the entry mode. This paper investigates the key determinants for the choice of foreign market entry mode. Specifically, the research examines the effects of market-related factors of the selected entry mode on service companies. This study contributes to the existing knowledge of internationalization of service companies by analyzing market-related factors of entry modes. Moreover, it provides managerial implications that might be applied by companies and governmental agencies to promote investment and internationalization of local companies.

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

2017 ◽  
Vol 34 (5) ◽  
pp. 652-673 ◽  
Author(s):  
Manlio Del Giudice ◽  
Ahmad Arslan ◽  
Veronica Scuotto ◽  
Francesco Caputo
Keyword(s):  
Host Country ◽  
Market Entry ◽  
Mode Choice ◽  
Entry Mode ◽  
Institutional Distance ◽  
Entry Modes ◽  
Content Type ◽  
Entry Mode Choice ◽  
Internationalisation Strategies ◽  
Cognitive Dimensions

Purpose The purpose of this paper is to address internationalisation of small- and medium-sized enterprises (SMEs) by specifically focussing on collaborative entry modes. Despite significant research done on market entry and internationalisation strategies of firms, the use of collaborative entry modes by SMEs during internationalisation has not received a lot of attention. The authors contribute to foreign market entry studies 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 The authors analyse the influences of cognitive dimensions on the choice between equity-based vs non-equity-based collaborative entry modes. The empirical sample consists of internationalisation strategies of 345 Italian SMEs, where the authors used a questionnaire to collect the data. The authors use structural equation modelling 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 The results show that high informal institutional distance leads to preference of non-equity-based collaborative entry mode by Italian SMEs. The authors 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 focusses on an ignored aspect of market entry strategies, i.e., equity vs non-equity collaborative entry mode choice of SMEs. The authors 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.

scholarly journals The role of international experience in speed of entry: Empirical evidence from Chinese innovative firms

2021 ◽  
Vol 275 ◽  
pp. 03001
Author(s):  
Hongping Du ◽  
Maoyan She ◽  
Xuan Yu
Keyword(s):  
Developing Countries ◽  
Host Country ◽  
Location Choice ◽  
Mode Choice ◽  
Entry Mode ◽  
Developed Countries ◽  
Entry Modes ◽  
Entry Mode Choice ◽  
Market Location ◽  
Innovative Firms

By analyzing the dynamic path of internationalization, this study attempts to explain the entry mode choice, location choice, and speed of entry in the process of internationalization from the learning results obtained from previous international activities. Our research shows that the speed of the entry process depends on the type of experiential learning generated by the implicit decision-making in the process of Internationalization: the entry mode choice and the market location choice. We find that the experience accumulated in the host country has an inverted U-shaped effect on the speed of entry; while the experience accumulated of the entry mode has a U-shaped impact on the speed of entry. We perform an event history analyses(EHA) on 153 Chinese innovative firms with 905 OFDI observations during the period from 1991 to 2015, and analysis what and why is the paths of internationalization of Chinese firms. We find that Chinese innovative MNEs have more likelihood to choice the entry mode of acquisition and WOS than other entry modes in OFDI activity, and there is a higher probability that the Chinese innovative MNEs choice the market location of developed countries than developing countries in OFDI activity. Most importantly, we find that accumulated experience in host country has an inverted U-shaped impact on the speed of internationalization operation with acquisition mode and the speed of internationalization in developed countries; while accumulated experience in focal entry mode has an U-shaped impect on the speed of internationalization operation with branch or WOS mode and the speed of internationalization in developing countries. This claim is supported by both non-parametric and parametric tests in the EHA. Our research highlights the short-term and long-term consequences of different types of paths associated with the internationalization process.

Characteristics of Physician Relocation Following Hurricane Katrina

2009 ◽  
Vol 95 (1) ◽  
pp. 6-12
Author(s):  
Kusuma Madamala ◽  
Claudia R. Campbell ◽  
Edbert B. Hsu ◽  
Yu-Hsiang Hsieh ◽  
James James
Keyword(s):  
Hurricane Katrina ◽  
Gulf Coast ◽  
General Medicine ◽  
The United States ◽  
Lessons Learned ◽  
Bivariate Analysis ◽  
Fisher Exact Test ◽  
Exact Test ◽  
Factors Associated ◽  
The Impact

ABSTRACT Introduction: On Aug. 29, 2005, Hurricane Katrina made landfall along the Gulf Coast of the United States, resulting in the evacuation of more than 1.5 million people, including nearly 6000 physicians. This article examines the relocation patterns of physicians following the storm, determines the impact that the disaster had on their lives and practices, and identifies lessons learned. Methods: An Internet-based survey was conducted among licensed physicians reporting addresses within Federal Emergency Management Agency-designated disaster zones in Louisiana and Mississippi. Descriptive data analysis was used to describe respondent characteristics. Multivariate logistic regression was performed to identify the factors associated with physician nonreturn to original practice. For those remaining relocated out of state, bivariate analysis with x2 or Fisher exact test was used to determine factors associated with plans to return to original practice. Results: A total of 312 eligible responses were collected. Among disaster zone respondents, 85.6 percent lived in Louisiana and 14.4 percent resided in Mississippi before the hurricane struck. By spring 2006, 75.6 percent (n = 236) of the respondents had returned to their original homes, whereas 24.4 percent (n = 76) remained displaced. Factors associated with nonreturn to original employment included family or general medicine practice (OR 0.42, 95 percent CI 0.17–1.04; P = .059) and severe or complete damage to the workplace (OR 0.24, 95 percent CI 0.13–0.42; P < .001). Conclusions: A sizeable proportion of physicians remain displaced after Hurricane Katrina, along with a lasting decrease in the number of physicians serving in the areas affected by the disaster. Programs designed to address identified physician needs in the aftermath of the storm may give confidence to displaced physicians to return.

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