Top management team influence and discretion in foreign market entry mode decisions
Type
conference paper
Date Issued
2013-07-05
Author(s)
Abstract
How firms expand beyond their home country is one of the most fundamental questions in international business. Drawing on agency theory and taking into account particularities of the Indian study sample and context, we find that board monitoring of the TMT, which impacts executives' latitude of action, moderates the effects of strategic decision-making (SDM) and rational choice (RC) models on firms' market entry mode decisions. In the SDM model, the link between TMT international experience and a preference for lower control entry modes is stronger in environments with low TMT monitoring. In the RC model, the association between prior firm multinational experience and preference for high control entry modes is stronger in environments with high TMT monitoring. We discuss theoretical and practical implications of these findings in the context of internationalizing multinational enterprises from emerging markets.
Language
English
Keywords
top management teams
foreign market entry
board monitoring
rational choice
strategic decision-making
emerging markets
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Book title
Proceedings of the 55th Annual Meeting of the Academy of International Business "Bridging the Divide: Linking IB to Complementary Disciplines and Practice"
Publisher
Academy of International Business
Publisher place
East Lansing, USA
Event Title
55th Academy of International Business (ABI) Annual Meeting
Event Location
Istanbul, Turkey
Event Date
03.-06.07.2013
Subject(s)
Eprints ID
228979