ENTRY MODE DECISIONS BY EMERGING-MARKET FIRMS INVESTING IN DEVELOPED MARKETS Academic Article

abstract

• This study draws upon the interorganizational imitation theory and endorsement literatures to explain the entry mode decisions of emerging-market firms (EMFs) into developed markets. Specifically, the study argues that EMFs entering developed markets pay differential attention to the prior actions of reference groups - by type of country of origin (whom to follow?) and by entry mode (how to imitate?). We test our hypotheses with a sample of 591 entries by EMFs investing in the United States over a 10-year period. The results support an isomorphism-based framework with different influences across reference groups by country of origin and entry mode. We find a dominant form of isomorphism, even after controlling for transaction costs and resource-based explanations. Copyright 2012 by Emerald Group Publishing Limited All rights of reproduction in any form reserved.

authors

• Eden, Lorraine

published proceedings

• INSTITUTIONAL THEORY IN INTERNATIONAL BUSINESS AND MANAGEMENT

author list (cited authors)

• Li, D., Miller, S. R., & Eden, L.

citation count

• 9

complete list of authors

• Li, Dan||Miller, Stewart R||Eden, Lorraine

publication date

• January 2012

publisher

• Emerald  Publisher

published in

• Advances in International Management  Journal

keywords

• 35 Commerce, Management, Tourism And Services
• 3502 Banking, Finance And Investment

Digital Object Identifier (DOI)

• 10.1108/S1571-5027(2012)0000025016

start page

• 207

end page

• 231

volume

• 25

URL

• http://dx.doi.org/10.1108/s1571-5027(2012)0000025016