scholarly journals 51 Flavors: Regional Resource Configurations and Foreign Multinational Market Entry in the U.S. Biopharmaceutical Industry

2021 ◽  
Vol 13 (17) ◽  
pp. 9763
Author(s):  
Roberto S. Santos ◽  
Denise R. Dunlap
Keyword(s):  
Market Entry ◽  
Emerging Market ◽  
Qualitative Comparative Analysis ◽  
Foreign Firms ◽  
Location Decisions ◽  
Biopharmaceutical Industry ◽  
Policy Makers ◽  
Resource Needs ◽  
The U.S ◽  
Entry Decisions

Creating a sustainable regional economy requires not only attracting new local ventures, but also foreign multinationals. In this regard, understanding which resources are influential in market entry decisions is crucial given that there are different resource needs between developed (DMNE) and emerging market (EMNE) multinationals. Answering calls for more neo-configurational studies in the literature, our study uses a fuzzy-set qualitative comparative analysis (fsQCA) approach to examine foreign multinational entry decisions in 51 regions of the U.S. We constructed a novel dataset comprised of 3287 foreign firms from 61 countries and territories operating in the biopharmaceutical industry. We find that there are substantial differences in the configuration of resources that attract DMNEs and EMNEs to regions. The resource configurations in our models account for over 80% of the factors influencing DMNE and EMNE market entry location decisions. Some resources played a more important role in these decisions, such as FDI stocks, cluster size, and manufacturing intensity. Our findings show that EMNEs seek out regions with a greater abundance of different resources than DMNEs. This study provides practical implications for firms entering foreign markets as well as for policy makers who want to attract these firms to bolster their regional economic development.

scholarly journals Storming the Beachhead: An Examination of Developed and Emerging Market Multinational Strategic Location Decisions in the U.S.

2021 ◽  
Vol 14 (7) ◽  
pp. 325
Author(s):  
Denise R. Dunlap ◽  
Roberto S. Santos
Keyword(s):  
Regional Development ◽  
Multinomial Logistic Regression ◽  
Emerging Market ◽  
Foreign Market ◽  
Foreign Firms ◽  
High Tech ◽  
Location Decisions ◽  
Domestic Firms ◽  
Location Patterns ◽  
The U.S

Entering a foreign market is challenging given the fierce competition posed by local incumbents. The literature suggests that when entering a foreign market, it is advantageous to locate where there are agglomeration benefits. Given the dynamic nature of regional development, foreign firms have multiple location options. While the literature has primarily focused on developed country multinationals’ (DMNEs) location decisions, emerging market multinationals (EMNEs) are increasingly becoming influential in high-tech industries. Due to differences in DMNE and EMNE resource endowments, they may consider alternative options when locating abroad and, thus, we examine these nuances. Using multinomial logistic regression, we investigate domestic and foreign location patterns of firms within the U.S. biopharmaceutical industry as of 2018. We constructed a unique dataset of 19,962 U.S. locations and examined the location patterns of DMNEs and EMNEs from 61 countries and territories. Given the heterogeneity of regional development in the U.S., we developed a typology that stratifies regions into four categories (developed, growth, transitioning, and nascent). Counterintuitively, we find that foreign multinationals are more likely to be attracted to less developed regions than domestic firms and have different location patterns, not only compared to domestic firms, but also with respect to each other.

scholarly journals The Effects of Foreign Market Entry Strategies on Financial Performance of Listed Multinational Firms in Kenya

2021 ◽  
Vol 6 (3) ◽  
pp. 216-225
Author(s):  
C. Smith ◽  
M. Ogutu ◽  
M. Munjuri ◽  
J. Kagwe
Keyword(s):  
Financial Performance ◽  
Market Entry ◽  
Multinational Firms ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Foreign Firms ◽  
Policy Makers ◽  
Entry Strategies ◽  
Internationalization Theory ◽  
Entry Strategy

The objective of this study was to establish the effects of foreign market entry strategies on the financial performance of listed multinational firms in Kenya. Internationalization theory was used as the theoretical foundation of the study. Empirical studies reviewed revealed that several studies had been done on the direct relationship between performance of multinational firms and their modes of entry into foreign firms. However, none of these studies focused on the financial performance of listed multinational firms. The study utilised a cross-sectional descriptive design. Secondary data collected from firms’ annual reports and financial statements for a period of four years (2014 to 2017) was used. The firms’ financial indicators of Sales Growth, Return on Equity, Return on Assets and Return on Capital Employed were employed to measure their performance. Franchising, exporting, wholly owned subsidiary and acquisitions were assessed as the entry strategies used by multinational firms. Data was collected from all the 62 listed multinational companies in Kenya and analysed using quantitative methods. This analysis was most preferred for data collected was quantitative in nature. The relationship between the independent and the dependent variable was tested using simple linear regression. The results show that the performance of multinational firms operating through franchises and as wholly owned subsidiaries as well as acquisitions was lower than the performance of multinationals operating as export companies. The study concludes that the mode of entry into foreign markets chosen by a firm significantly affected its financial performance in the said market. It is therefore recommended that multinational firms wishing to expand their operations globally to come up with long term strategies that have gone through rigorous scrutiny for the benefit of the firm. The study gave a contextual understanding of the internationalization theory. The theory managed to emphasize on reasons why multinational firms should expand their operations beyond their national boundaries. Actual ingredients for policy makers to undertake a well thought through policy formulation to fully understand the importance of choosing the right entry strategy was provided for in the results. Recommendations of the study are that a thorough marketing evaluation of the country of interest should be undertaken to ensure that proper measures are put in place for the selection of an entry strategy that will address the goals and objectives of a firm. The study also recommends that employees of a firm who are at the forefront in the internationalization process should be well informed and trained ahead of the firm’s plans. Policy makers and advisories in countries are advised to streamline the processes of foreign firms’ registration so to attract foreign investors.

Why Are Foreign Firms Listed in the U.S. Worth More?

CFA Digest ◽  
2004 ◽  
Vol 34 (3) ◽  
pp. 54-55
Author(s):  
William H. Sackley
Keyword(s):  
Foreign Firms ◽  
The U.S

Audit Quality of Chinese ADR Engagements

2016 ◽  
Vol 31 (2) ◽  
pp. 25-43 ◽  
Author(s):  
Aloke (Al) Ghosh ◽  
Elisabeth Peltier ◽  
Cunyu Xing
Keyword(s):  
Audit Quality ◽  
Emerging Market ◽  
Financial Statements ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Reverse Mergers ◽  
Chinese Companies ◽  
Big 4 ◽  
Depositary Receipts

SYNOPSIS The controversy over Chinese reverse mergers has led to concerns about the audit quality of all U.S.-listed Chinese companies. Because a sizeable number of foreign firms cross-list their shares as American Depositary Receipts (ADRs) issued by U.S. depositary banks (as opposed to direct listings), we study how auditors have managed their audits of Chinese ADRs. Our motivation for examining Chinese ADRs is based on the findings that cross-listing via the ADR process is beneficial for U.S. shareholders. We find that relative to ADRs from countries other than China, and relative to directly listed Chinese companies, Chinese ADRs are more likely to be associated with a Big 4 auditor and are less likely to restate prior-period financial statements. We also find that Chinese ADRs pay significantly higher fees than other emerging market ADRs and Chinese direct-listings. Collectively, these results suggest high audit quality for Chinese ADRs, which is in sharp contrast to the Chinese direct-listing results. Using Tobin's Q as a measure of market value, we find that the stock market rewards Chinese ADRs, indicating that investors incorporate the benefits of higher audit quality when evaluating Chinese ADRs.

Segmentation of physician-assisted suicide as a niche tourism market: An Initial Exploration

2021 ◽  
pp. 109634802110116
Author(s):  
Jun Wen ◽  
Edmund Goh ◽  
Chung-En Yu
Keyword(s):  
Content Analysis ◽  
Assisted Suicide ◽  
Emerging Market ◽  
Physician Assisted Suicide ◽  
Target Groups ◽  
Comprehensive Overview ◽  
Policy Makers ◽  
Thematic Content Analysis ◽  
Specific Target ◽  
Initial Exploration

Suicide travel, in which potential suicide candidates visit certain destinations to perform physician-assisted suicide (PAS), is an emerging topic in tourism. Despite noted discrepancies between suicide travel and traditional definitions of tourism, PAS practices in tourism have gained the attention of scholars and practitioners. This type of travel is inherently complex, and its segmentation remains ambiguous. This study examines a sample of PAS-related videos and viewer comments to identify relevant travel segments. Based on two rounds of thematic content analysis, the resultant segmentation offers a preliminary perspective on this emerging market. Theoretically, this study is among the first to provide a comprehensive overview of the roles of PAS practices in tourism in terms of specific target groups. Practically, the findings offer novel insight for industry practitioners and policy makers.

Market entry decisions in China

2003 ◽  
Vol 45 (3) ◽  
pp. 289-312 ◽  
Author(s):  
David McHardy Reid ◽  
John Walsh
Keyword(s):  
Market Entry ◽  
Entry Decisions
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