Foreign entry modes under institutional pressures: the impact of strategic resource seeking and market seeking strategies

Ferreira, Manuel Portugal; Serra, Fernando Antonio Ribeiro

http://hdl.handle.net/10400.8/5976

Use this identifier to reference this record.

Name:	Description:	Size:	Format:
2008_RCA_foreign entry under inst pressures.pdf		130.44 KB	Adobe PDF	Download

Send Feedback

Authors

Ferreira, Manuel Portugal

Serra, Fernando Antonio Ribeiro

Abstract(s)

Multinational corporations (MNCs) are subject to the various dimensions of the external institutional environments. Institutional theory suggests that MNCs need to conform to the prevailing rules, norms and procedures of the locations where they operate in order to survive and grow. This means that MNCs need to develop the best possible configuration of strategy-structure for their worldwide operations. Previous research has noted that in these conditions firms may simply seek to follow a referent other. However, MNCs’ specific strategy for a focal foreign operation is likely to determine the entry mode for each host country. In certain circumstances it may be whether MNCs are pursuing a market-seeking strategy or a strategic resource seeking strategy that shapes the entry mode in face of the prevailing institutional pressures. We contribute to the understanding of entry modes into foreign markets as a reflection of a strategic choice that is bound by institutional constraints.

Keywords

Multinational corporations Institutional theory Foreign entry modes

URI

http://hdl.handle.net/10400.8/5976

Citation

Ferreira, M. P., & Serra, F. A. R. (2008). Foreign entry modes under institutional pressures: the impact of strategic resource seeking and market seeking strategies. Revista de Ciências da Administração, 10(22), 11-29.