Foreign Market Entry Mode Decision-Making: Insights from Real Options Reasoning
Ahi, Mohamadali (2017-08-18)
Väitöskirja
Ahi, Mohamadali
18.08.2017
Lappeenranta University of Technology
Acta Universitatis Lappeenrantaensis
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-335-115-8
https://urn.fi/URN:ISBN:978-952-335-115-8
Tiivistelmä
This dissertation addresses firms’ choice of foreign market entry mode, and changes made to the
chosen mode, using real options reasoning (ROR). Entry mode choice has long been under scrutiny
in the international business (IB) literature. Yet, unexplored areas remain, such as how managers
actually make entry mode decisions. Once they have made the decision, how do they decide to
change the mode, or maintain the chosen mode? Firms have differing organizational perspectives.
For instance, they differ from one another in their entrepreneurial orientation and attention
structure. How do these differences affect the way firms follow ROR? And, once ROR is followed,
what are implications for the firm? The study sets out to respond to these questions, employing
ROR, a novel, yet controversial lens in IB. Both conceptual and empirical approaches are
employed. In the conceptual and qualitative studies, testable propositions are developed. Some of
the propositions are then tested in quantitative studies. These are the basis of five research articles,
the results of this dissertation.
This dissertation makes at least four contributions to the IB literature. First, it reveals some of the
potential limitations in the past entry mode studies. Accordingly, by employing ROR, it develops
a model of market entry mode choice and change. Second, it demonstrates how managers in firms
actually make entry mode choice decisions and how they change the chosen modes. Third, the
research communicates how these choices are made from the ROR perspective, extending the
applicability and boundaries of ROR in IB. Fourth, it clarifies the performance implications of
employing ROR in decision-making underlying entry mode choice and change. This is important
to the firm as the wrong entry mode choice could have significant consequences.
chosen mode, using real options reasoning (ROR). Entry mode choice has long been under scrutiny
in the international business (IB) literature. Yet, unexplored areas remain, such as how managers
actually make entry mode decisions. Once they have made the decision, how do they decide to
change the mode, or maintain the chosen mode? Firms have differing organizational perspectives.
For instance, they differ from one another in their entrepreneurial orientation and attention
structure. How do these differences affect the way firms follow ROR? And, once ROR is followed,
what are implications for the firm? The study sets out to respond to these questions, employing
ROR, a novel, yet controversial lens in IB. Both conceptual and empirical approaches are
employed. In the conceptual and qualitative studies, testable propositions are developed. Some of
the propositions are then tested in quantitative studies. These are the basis of five research articles,
the results of this dissertation.
This dissertation makes at least four contributions to the IB literature. First, it reveals some of the
potential limitations in the past entry mode studies. Accordingly, by employing ROR, it develops
a model of market entry mode choice and change. Second, it demonstrates how managers in firms
actually make entry mode choice decisions and how they change the chosen modes. Third, the
research communicates how these choices are made from the ROR perspective, extending the
applicability and boundaries of ROR in IB. Fourth, it clarifies the performance implications of
employing ROR in decision-making underlying entry mode choice and change. This is important
to the firm as the wrong entry mode choice could have significant consequences.
Kokoelmat
- Väitöskirjat [1038]