Institutional theory and entry modes by emerging markets multinationals

This essay aims at contributing to the analysis of the spaces for contribution of the institutional perspective of analysis to advance the understanding of entry mode choices by multinational firms from emerging markets. Entry modes refer to the decisions involving the degree of control of a subsidi...

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Bibliographic Details
Authors: Rocha, Angela da, Ávila, Henrique de Azevedo
Format: article
Status:Published version
Publication Date:2015
Country:Brasil
Institution:Fundação Getulio Vargas (FGV)
Repository:Revista de Administração de Empresas
Language:Portuguese
OAI Identifier:oai:ojs.periodicos.fgv.br:article/49247
Online Access:https://periodicos.fgv.br/rae/article/view/49247
Access Level:Open access
Keyword:Institutionalism
Entry modes
Multinationals
Institutional distance
Emerging countries
Institucionalismo
Modos de entrada
Multinacionales
Distancia institucional
Países emergentes
Multinacionais
Distância institucional
Description
Summary:This essay aims at contributing to the analysis of the spaces for contribution of the institutional perspective of analysis to advance the understanding of entry mode choices by multinational firms from emerging markets. Entry modes refer to the decisions involving the degree of control of a subsidiary (wholly-owned versus joint venture). Some authors propose that three dimensions of the institutional environment influence the entry mode decision: regulative distance, normative distance and cultural-cognitive distance between the host country and the country of origin of the investing firm. Starting from a broad review of the extant literature, this study identifies factors related to the three pillars of the institutional environment and advances propositions to be tested in future studies on entry mode choices of emerging market multinationals.