Wanted: strategic partners for young firms eager to enter foreign markets

Wanted: strategic partners for young firms eager to enter foreign markets PurposeThis paper aims to investigate the relationship between strategic asset-seeking intent and firms’ entry strategies of foreign investment in the context of emerging market firms.Design/methodology/approachThis study is based on survey data of 392 Chinese foreign direct investment projects. Structural equation modelling is used for data analysis.FindingsWith stronger strategic asset-seeking intent, emerging market multinational enterprises are likely to locate their subsidiaries in developed countries, use a wholly owned subsidiary mode and invest with greater intensity, while they do not have a clear preference in entry timing.Practical implicationsThe strategic asset-seeking intent applies not only to emerging market firms but also to small and medium firms in general that have limited resources and a need to catch up with stronger competitors. This study therefore provides guidance to these firms.Originality/valueThis study contributes by investigating how the strategic asset-seeking intent affects firms’ strategies. The findings have practical implications for strategic managerial decisions that lead to sustained competitive advantage and improved firm performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

Wanted: strategic partners for young firms eager to enter foreign markets

Journal of Business Strategy, Volume 41 (1): 8 – Jan 13, 2020

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0275-6668
DOI
10.1108/JBS-11-2018-0196
Publisher site
See Article on Publisher Site

Abstract

PurposeThis paper aims to investigate the relationship between strategic asset-seeking intent and firms’ entry strategies of foreign investment in the context of emerging market firms.Design/methodology/approachThis study is based on survey data of 392 Chinese foreign direct investment projects. Structural equation modelling is used for data analysis.FindingsWith stronger strategic asset-seeking intent, emerging market multinational enterprises are likely to locate their subsidiaries in developed countries, use a wholly owned subsidiary mode and invest with greater intensity, while they do not have a clear preference in entry timing.Practical implicationsThe strategic asset-seeking intent applies not only to emerging market firms but also to small and medium firms in general that have limited resources and a need to catch up with stronger competitors. This study therefore provides guidance to these firms.Originality/valueThis study contributes by investigating how the strategic asset-seeking intent affects firms’ strategies. The findings have practical implications for strategic managerial decisions that lead to sustained competitive advantage and improved firm performance.

Journal

Journal of Business StrategyEmerald Publishing

Published: Jan 13, 2020

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