The influence of industry structure on the entry mode choice of overseas entrants in manufacturing industries

This study examines the impact of industry structure on the foreign direct investment (FDI) entry mode decisions by multinational enterprises (MNEs) in manufacturing industries. We explore the notion that firms would seek to balance the risks due to industry structural barriers and liabilities of foreignness while seeking entry in international markets. A multinomial logistic regression model is used to test 336 entry decisions from 18 countries entering the United States over the period 1989–1994. Empirical evidence shows that underlying industries' structural characteristics influence a firm's preference for entry mode alternatives such as greenfield investments, acquisitions, and joint ventures. In concentrated and high-growth industries, foreign firms prefer entry by setting up greenfield operations rather than pursuing acquisitions or joint ventures. However, in industries characterized by high gross profits or higher plant scale, the preference is for joint ventures or acquisitions as an entry mode over greenfield operations.     

基于行业环境风险感知维度的中国企业国际扩张与绩效关系研究——兼论企业所有制形式的调节作用

企业的国际扩张与国际化绩效一直是国际商务研究关注的重要问题。然而,中国企业与西方企业在国际化扩张中最大差异之一则在于其所有制形式。本研究从中国企业所有制独特特性出发,实证检验了中国企业所有制形式对企业在国际扩张中行业环境风险感知、进入模式选择的影响,并进一步分析不同进入模式的绩效差异。研究发现,中国企业在国际化扩张进程中:(1)行业环境风险感知对国际进入模式选择具有显著负向影响;(2)所有制形式对企业的行业环境风险感知与国际进入模式产生重要的调节作用;(3)不同进入模式对企业的国际化绩效也会产生重要影响。     

Greenfield Investment versus Akquisition

Based on neo-institutionalism, the present paper examines the moderating impact of perceived institutional uncertainty on the foreign establishment mode choice (i.e. the decision between greenfield versus acquisition) of German SMEs. The empirical findings demonstrate that the extent of perceived institutional uncertainty moderates the relationship between the investment volume, market growth and the decision between greenfield and acquisition. Focusing on the perceived institutional uncertainty, the paper adheres to the fact that due to limited resources of SMEs, SME managers often cannot make their managerial decisions based on profound knowledge from prior market analysis, but they have to follow their own intuition and perception. The key contribution of this paper is hence on the link between frequently studied establishment mode choice predictors and perceived institutional uncertainty of SME managers. This focus contributes to resolving some of the inconsistencies in previous research and to emphasize SMEs which have been largely neglected in prior literature.     

Greenfield or M&A? An institutional and learning perspective on the establishment mode choice of Chinese outward investments

We develop and test a model of Chinese greenfield investments using institutional and learning theories. Both the host country institutional context and the firm's international characteristics affect the establishment mode. Using 152 Chinese emerging market multinationals (EMNEs) with 401 subsidiaries distributed in 26 countries from 2003 to 2013, we build a database of 284 pairs of host country/Chinese firms to test two hypotheses. We find that, first, governance environment affects the establishment mode: greenfield investments are preferred over acquisitions in relation-based host markets, and M&As are preferred in rule-based countries. Second, the depth of Chinese EMNEs' international experience (i.e. the amount of previous investments in the same host market) moderates the effect of the governance environment on the establishment mode. Firms with greater international depth use more M&As in relation-based markets and more greenfield investments in rule-based markets, suggesting that previous investments in the same host country provide a type of learning that reduces acquisition uncertainty in the former case and increases the self-confidence of Chinese EMNEs in the latter.     

How Do SMEs Decide on International Market Entry? An Empirical Examination in the Middle East

This study contributes to the scant literature that scrutinises the decision-making process preceding foreign entries, particularly in the Middle Eastern context. While considerable research has examined the content and antecedents of the internationalisation decision of firms, far less attention has been paid to how SMEs decide on international market entry. The answer to this question is important to advance our understanding of internationalisation processes and offer essential insights for first and successive market entries, particularly post political crises. Through an embedded approach to case study, the analysis of four SMEs based in Egypt and Qatar suggests that SMEs' decision-making evolves into a rational mode as SMEs progress through successive international market entries. The study also captures the co-existence of reactive and bounded rationality modes during SMEs' unplanned internationalisation and suggests that SMEs are likely to adopt a bounded rationality mode as a response to the occurrence of a political crisis in the home country.     

Equity versus non-equity international strategic alliances involving Danish firms: An empirical investigation of the relative importance of partner and host country determinants

A substantial literature has evolved focusing on the ownership structure of international strategic alliances (ISAs). Most of the relevant studies are theoretical in nature and concentrate on the conceptual factors that influence the choice between equity and non-equity structures. A smaller number of studies provide some empirical evidence on the importance of some of the conceptual factors. The theoretical literature highlights the potential influence of relational capital and transaction costs as determinants of ISA structure; however, there is little empirical evidence on the relative importance of these potential determinants. Moreover, there is only limited and indirect evidence bearing upon the impact of host country governance attributes on ISA ownership structure. In this study, we provide statistical evidence on the importance of potential determinants of governance mode choice for a sample of ISAs involving Danish firms. Our study documents how the determinants of governance mode choice vary in importance depending upon the “quality” of the governance infrastructure of the host country.     

基于EOQ模型的存货质押融资业务模式选择研究

委托监管模式、物流银行模式和统一授信融资模式是存货质押融资的几种主要模式,本文采用EOQ模型研究了这三种融资模式下供应链成员的决策和收益情况,并分析了这三种融资模式中制造商与物流企业参与融资的条件。通过对融资模式进行比较分析,论文指出了融资模式对供应链成员收益的影响。主要研究结论指出,在质押率和融资利率的特定区域内,物流企业和制造商同时愿意参与质押融资。由于在统一授信模式中,银行的日常的运营成本比委托监管模式低,银行获得比委托监管模式更多的利润。在选择融资模式时,银行更偏好于统一授信模式。对于物流企业来说,若统一授信模式中物流企业的沉淀资金收益率大于银行的利率,它的利润要比委托监管模式更多,否则要少于委托监管模式。本文的研究结论为存货质押融资业务的模式选择提供了一些的理论参考。     

Diaspora Ownership and Homeland Firms' Internationalization

Although the contribution of diaspora to international business is becoming more evident, little is known about the channels used by individual firms to benefit from diaspora. In this paper, we propose equity ownership as a form of connection between the homeland firms and diasporans (i.e. diaspora members). Specifically, we draw on the literature on diaspora combined with an owners-as-resources perspective to theorize about how diaspora owners can affect the homeland firm's internationalization. We suggest that the anticipated entry costs deriving from the liability of foreignness faced by homeland firms explain how the impact of diaspora owners varies depending on entry mode. Finally, we compare diaspora owners to other types of foreign owner which we argue have lower levels of motivation and ability to help homeland firms to internationalize, and contribute relatively less to their internationalization than diaspora owners. We test and confirm our predictions using data on 2608 domestically controlled Indian firms and their internationalization in 2006–2012.     

How does distance affect market entry mode choice? Evidence from French companies

The objective of this article is to examine the relevant dimensions of distance for foreign market entry mode choice. Based on a sample of 203 interfirm linkages formed by French multinationals with partners across the world, we analyze the impact of four dimensions of distance on the choice between cooperative alliances and mergers-acquisitions. The findings indicate that administrative and economic distance have a significant influence on market entry mode choice, whereas the impact of cultural and geographic distance is not significant. They further highlight the important role of the host country's government effectiveness for market entry mode decisions.     

Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?

The choice of a mode of market entry is a critical component of the internationalization strategy, and numerous empirical studies have focused on this topic. Prior research, however, has provided mixed empirical evidence and thus, is difficult to interpret and review.This study examines the external antecedents of the choice of entry mode by meta-analyzing data from 72 independent primary studies. We focus on the decision between wholly owned subsidiaries and cooperative entry modes. For each variable, hypotheses about the theoretically expected direction of effect are posited and tested.We find a strong positive relationship between power distance as a cultural trait of the firm's home country and the propensity to establish a wholly owned subsidiary. On the other hand, we find a negative association between country risk, legal restrictions, market growth, and market size and the preference for wholly owned subsidiaries. We extensively discuss the implications of the meta-analytical results and investigate moderating effects of industry type and the time of the study. The relationship between income level of the host country and entry mode depends, to some degree, on the industry type. Service companies exhibit a negative relationship between income level and wholly owned subsidiaries, while manufacturing companies show a positive relationship.     

Multinational enterprises' Entry Mode Strategies and Uncertainty: A Review and Extension

The issue of uncertainty has been one of the most important topics in the research on multinational enterprises' foreign market entry modes. This paper provides a conceptual review of the literature on the role of uncertainty in entry‐mode strategies. It is found that transaction cost theory has focused primarily on entry modes as a way of minimizing behavioural uncertainty, while research using the more recent real options approach has distinguished between endogenous and exogenous types of uncertainty and provided evidence that managing uncertainty through appropriate entry modes may lead to competitive advantage. By synthesizing the relevant literature, this paper provides some new perspectives and avenues for future research on uncertainty and entry‐mode choices by considering the impact of firm learning, prior experience and host market attractiveness.     

An analytic hierarchy process based simulation model for entry mode decision regarding foreign direct investment

A methodology is developed for ranking entry mode alternatives encountered by individual firms considering foreign direct investment (FDI). The methodology deals with the risks and uncertainties related to FDI. The analytic hierarchy process (AHP) is used to solve the multiple criteria decision-making problem using input from a firm's management. A simulation approach is incorporated into the AHP to handle the uncertainty considerations encountered in an FDI environment. The uncertainties include: (1) uncertainty regarding the future characteristics of the FDI decision making environment, (2) uncertainty associated with the decision maker's judgment regarding pairwise comparisons necessitated by the AHP.     

Perceived Environmental Uncertainty, Entry Mode Choice and Satisfaction with EC-MNC Performance

Previous theoretical and empirical research provides substantial support for a contingency approach toward international entry-mode selection. Similarly, additional empirical research supports the notion that different international ownership-based entry modes tend to be associated with varying performance levels. In this study we provide an initial attempt to use Werner, Brouthers and Brouthers' (1996) multiple measures of Perceived Environmental Uncertainty (PEU) to determine the entry mode choices of firms and link these risk-adjusted mode choices to managerial satisfaction with firm performance. We hypothesize and find that firms which make PEU risk-adjusted entry mode choices are significantly more satisfied with their firm's performance than firms whose entry mode choices cannot be predicted using multiple PEU risk measures.     

Maintaining product quality consistency when offshoring to emerging markets: The role of subsidiary control

Offshoring can increase firms' exposure to product quality risks, such that manufacturing firms need effective tactics to maintain product quality consistency across offshoring subsidiaries. With an agency theory approach, the present study seeks novel insights into three widely used subsidiary control mechanisms for achieving product quality consistency across offshoring subsidiaries in emerging markets and developed home countries. Through surveys of 150 subsidiaries of multinational corporations in heavy industries operating in China, the paper tests a proposed model using hierarchical linear regression, accounting for endogeneity concerns using the Gaussian copula method. The analysis yielded several findings: An inverted U-shaped relationship exists between decision autonomy and product quality consistency; expatriate staffing positively predicts product quality consistency and attenuates the negative effects of excessive autonomy on product quality consistency; and compared with greenfield entry, mergers and acquisitions negatively predict product quality consistency.     

服务企业的国际化战略

本文分析了打算进入国际市场的服务企业所面临的主要挑战,然后提出了服务企业国际化的五种相互并不完全排斥的战略。它们是：直接出口服务,即最适合于面向产业市场的维修和保养服务;系统出口,指由两家或多家提供互补性解决方案的企业开展的合作出口;直接进入模式,指服务企业在国外市场直接建立子公司;间接进入模式,适用于那些不愿意直接在国外设立拥有全部或部分所有权的子公司的服务企业,通常通过授权协议或特许经营方式由当地企业提供服务;电子营销,这种方式使企业不必局限于某一特定市场。     

企业国际化经营中关键风险的识别研究

风险识别是企业从事国际化经营时进行风险管理采取的首要步骤,也是进一步实施风险防范与规避的前提和基础.本文以中国企业的国际化经营为研究背景,在对国际风险分类与识别进行理论推导的基础上,通过实证研究,对企业在采取不同国际市场进入模式时所面临的各类风险加以识别,并对关键风险进行聚焦探析.     

物流联合外包下库存管理模式对供应链运作的影响

针对由供应商、第三方物流服务商和零售商组成的供应链,考虑供需双方将物流服务联合外包给第三方物流服务商、共同承担运费的情形,探究供应商管理库存和寄售库存两类库存管理模式的引入对供应链运作及合同设计的影响。分别在传统的零售商管理库存、仅引入寄售库存的零售商管理寄售库存以及同时引入供应商管理库存和寄售库存的供应商管理寄售库存三种模式下,构建了第三方物流服务商主导、供应商和零售商跟随的序贯非合作博弈模型,证明了所有模式下均衡的订购量/寄售量均存在且唯一,并探讨了均衡结果随零售商运费分摊比例、转移支付价格两个关键参数的变化。横向对比三种模式下的均衡结果和集中决策下的最优结果,发现：零售商管理库存模式下的均衡订购量总是低于零售商管理寄售库存模式以及集中决策下的结果,而其他库存管理模式下的订购量并非一定低于集中决策下的结果;不同库存管理模式下,均衡状态下的订购量/寄售量及供应链总的期望收益大小关系取决于供应商和零售商的类边际(毛利)贡献率,从而表明,供应链环境下,上下游成员企业的收益结构、盈利水平等对于库存决策及库存模式的选取有重要影响。此外,在绝大多数情形下,不同库存管理模式下的均衡订购量与集中决...     

渠道模式、努力投入与生鲜农产品供应链运作效率研究

归纳总结我国生鲜农产品供应链三种主要渠道模式的特征和内涵,对比分析不同渠道模式下的生产努力投入、销售努力投入以及供应链效用水平。研究结果表明:(1)农户的风险规避偏好是影响其选择不同渠道模式的关键因素;(2)当农户的风险规避程度较低时,农户应该选择采用自产自销模式,此时的生产努力投入和销售努力投入也较其他模式下更高。而当农户的风险规避程度较高时,加入"农超对接"供应链不仅有利于增进农户效用,而且也能提高生产努力投入和销售努力投入;(3)相比于松散型"农超对接"模式,紧密型"农超对接"模式是一种更优的选择,能够同时提高农户和超市双方的效用水平。     

基于制造商O2O模式选择的O2O供应链定价与网上交货期决策

以制造商主导的O2O供应链为背景,考虑市场需求受价格和网上交货期的影响,针对网上直销和网上代销两种O2O模式分别构建O2O供应链定价与网上交货期决策模型,研究渠道成员的最优策略并分析其性质。再通过数值算例分析了价格敏感型消费者情境和网上交货期敏感型消费者情境下消费者网上销售渠道偏好程度和佣金率对O2O供应链最优策略和利润的影响,并探讨了制造商O2O模式的选择问题。发现：消费者网上销售渠道偏好程度越高,越有利于制造商和O2O平台,但不利于线下门店;佣金率越高,越有利于线下门店和O2O平台,却不利于制造商。当消费者更关注网上交货期时,缩短网上交货期并不利于制造商;而当消费者更关注价格时,延长网上交货期是有利的。制造商的O2O模式选择主要受佣金率的影响,只有当佣金率处于较低范围时网上代销O2O模式是制造商的较优选择。