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Foreign Entry Mode Choices of Emerging Market Multinationals: The Role of Institutional Voids in Shaping Strategic Cognition

Emerging Economies and Multinational Enterprises

ISBN: 978-1-78441-740-6, eISBN: 978-1-78441-739-0

Publication date: 24 June 2015

Abstract

This paper introduces a conceptual framework to assess the foreign market entry behavior of emerging market multinationals (EMMs). By introducing strategic cognition as the underlying theoretical perspective, this paper postulates that different levels of institutional voids in home markets shape the strategic cognition of EMMs, influencing their market entry behavior due to the prevalence of organizational imprinting in the early stages of internationalization. The paper aims to contribute to the strategic cognition literature by introducing emerging markets as a relevant context in which to apply and extend current thinking. Additionally, it aims to contribute to the institutional voids literature by providing a cognitive framework of behavioral patterns that is rationalized by institutional voids. Finally, the paper contributes to the entry mode literature by proposing strategic cognition as a relevant moderator for foreign entry mode choices, particularly those of EMMs.

Keywords

Acknowledgements

Acknowledgments

The author would like to thank the participants at the AIM Emerging Markets and MNEs Conference in Boston on September 27–28, 2014, and especially Elitsa R. Banalieva, Laszlo Tihanyi, and Joseph A. Clougherty, as well as Dirk Morschett, for helpful comments on earlier versions of this paper. Any omissions and errors are, of course, my own.

Citation

Hilb, M. (2015), "Foreign Entry Mode Choices of Emerging Market Multinationals: The Role of Institutional Voids in Shaping Strategic Cognition", Emerging Economies and Multinational Enterprises (Advances in International Management, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 471-502. https://doi.org/10.1108/S1571-502720150000028020

Publisher

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Emerald Group Publishing Limited