Footloose and fancy-free in FinTech? Internationalization strategies of born regional and born global firms in the European financial service sector

Purpose Given their interrelationship, international market selection (IMS) and entry mode selection (EMS) must be considered jointly if an optimal entry strategy is to be realized. However, researchers in the field of international construction have the tendency to consider IMS and EMS independently or sequentially. Therefore, this paper aims to explore a holistic framework that can accommodate IMS and EMS concurrently and test it using empirical data. Design/methodology/approach his study includes theoretical and empirical research. In theoretical part, an integrated decision model of IMS and EMS is proposed adopting literature review and theoretical derivation, then hypotheses are developed for the impact of decision-making factors. In the latter part, the IMS and EMS of 54 Chinese contractors in 67 countries were investigated, empirical data are collected according to hypotheses, an ordinal logistic regression model is established for statistics analysis. Finally, findings are drawn by comparing literature-based hypotheses with data-based analysis results. Findings Results show that empirical data fit theoretical model well. Findings are: IMS and EMS can be integrated into a holistic decision-making framework when be properly sequenced. When IMS and EMS are determined simultaneously, the decision can benefit from a sharing of common information. And the roles of at least 13 common factors are empirically demonstrated in this study. Research limitations/implications The integrated decision sequence proposed in this study is applicable for a specific market, and cannot compare multiple alternative markets directly. The decision-making factors identified in this paper do not cover the enterprise strategic objectives and some other factors. Empirical data and some theoretical assumptions are based on the international market entry strategy of Chinese contractors. Therefore, the conclusions may not be completely applicable to global contractors though have certain reference value. Originality/value Based on the idea of holistic decision-making of IMS and EMS, this study proposes an international market entry strategy (IMES) sequence and an explicit model for determinants, then tests them with empirical data. This paper provides a new idea to manage IMS and EMS concurrently, which can improve the efficiency of IMES decision-making and avoid missing optimal alternatives. This study paves the way for a practical model and provides reference for contractors' international market entry strategy.

The thesis by publication contains three papers and addresses shortcomings in existing literature on internationalization processes of multinational enterprises and international new ventures (INVs). Special focus is given to their subsequent international development (i.e. period after the first international market entry), the role of country differences, and internationalization speed. While previous International Entrepreneurship literature has focused largely on the pre-internationalization period of INVs, this thesis analyzes the subsequent internationalization stage, providing a comprehensive conceptual framework depicting antecedents of INVs’ subsequent internationalization process and analyzes the moderating impact of institutional distance. In addition, different speed dimensions are assessed for their individual impact on international performance for INVs and traditional exporters. Lastly, this thesis introduces and examines the concept of managers’ misperceptions of country differences, which is defined as the deviation between actual differences between countries and managers’ perceptions of these differences. The thesis empirically identifies antecedents of managers’ misperception of country differences and its impact on firms’ host country performance. The thesis uses a multi-method approach consisting of conceptual and empirical work. Data for empirical analysis was collected from the German renewable-energy industry and consisted of a qualitative pre-study and a quantitative study based on data from 251 returned questionnaires. Derived hypotheses of the empirical papers were tested either by employing structural equation modeling or OLS regression analyses. The most important findings highlight that institutional forces play a significant and often overlooked moderating role for internationalizing INVs. Results indicate that these forces considerably impact the internationalization process in terms of internationalization speed, scope, and market entry mode. Furthermore, analyses on multiple dimensions of internationalization speed and their impact on international performance show that the impact varies depending on the dimension considered and can either be positive, negative or non-significant. Results also show that INVs benefit from expanding rapidly into a high number of markets, swiftly increasing international sales, and using equity entry modes. However, traditional exporters only benefit from rapidly increasing international sales. Furthermore, this thesis demonstrates the relevance of the concept of managers’ misperception of country differences, showing that managerial misperception leads to lower host country performance. Additionally, antecedents of managerial misperception are identified and results show that antecedents such as firm size and effective key partnerships in the host country are negatively associated with managerial misperception. Contrarily, a firm’s international scope and cultural distance between the home and host country are positively associated with managerial misperception. The thesis thereby contributes to current research in the field of International Business, provides many avenues for future research, and contains important implications for practitioners.

Purpose – The purpose of this paper is to examine the internationalization of small- and medium-sized enterprises (SMEs) in regard to the international market selection (IMS) and entry mode selection (EMS) processes. Design/methodology/approach – To achieve this, an examination of the degree of systematic/active behaviour during IMS and EMS on a sample of 221 SMEs was conducted. Moreover, the paper sought to comprehend whether SMEs select foreign market and entry mode in a separate and sequential way, and whether there is a relationship between the sequentiality of IMS and EMS, on one side, and SME behaviour during these two processes, on the other side. Findings – Results revealed that SMEs have a non-systematic and passive behaviour during IMS and EMS, respectively. Moreover, a high predilection in performing the two processes contemporaneously or without any logic was found. Finally, a strong relation between sequentiality of IMS and EMS and degree of systematic and active behaviour during the processes existed. Originality/value – In this study, using a sample of SMEs located in a region of Italy, SME behaviour in the IMS and entry mode choice processes was tested.

Today's economic environment is rapidly changing, forcing companies to expand internationally. Foreign market entry has now become a well-studied topic among academics. When a firm enters a foreign market, crucial strategic decisions such as international market selection and entry mode selection must be made, and members of the management team are entrusted with making these complicated judgments that will set the company's path. There have been many studies showings that developing the strong strategies for entering to the market and based on this creating powerful marketing strategies can help company to succeed in the competitive market. SWOT analysis and interviews of Lada managers are used to comprehend the strategies of the LADA company used to enter Uzbek market and to ensure reliability of the findings.

Purpose This paper aims to provide a conceptual framework on the effect of the theological and political values of the upper echelon on the international marketing strategy of firms covering (a) the scope of internationalization, (b) the market entry mode and (c) compliance vs cooperative CSR with global value chain partners. Design/methodology/approach The authors base this paper on a review and analysis of theories on theological values and political ideology with conceptual development and future research directions. Findings The authors propose how theological values, i.e. spiritual and religious values and conservative vs liberal political ideologies, result in the development of cultural intelligence and a global mindset of the upper echelon and how these cognitive attributes then drive three different dimensions of international marketing strategy, i.e. the scope of internationalization, the choice of market entry mode and cooperative vs compliance CSR initiatives with global value chain partners. Originality/value The paper provides a comprehensive understanding of the impact of scantly explored upper-echelon traits, i.e. theological values and political ideology, on different dimensions of international marketing performance of firms, ranging from the scope of internationalization to the choice of CSR activities in international markets.

Subject area International business or International marketing. Study level/applicability The case is recommended for undergraduate and graduate courses in the fields of international business and international marketing. The aim is to show students the problems that a family business in the animation industry faces while growing and internationalizing. Specifically, the case discusses the entry mode selection and market selection challenges faced by an emerging market company in the comic book and animation industry to operate overseas and compete with entertainment giants such as Disney and DC Comics. The case enables the instructor to discuss international market selection theories and evaluate entry modes. For graduate students, the international market selection can be further developed by using more robust concepts such as psychic and cultural distance. Case overview This case examines the trajectory of a pioneering company in the comic book and animation industries, and in the licensing of trademarks in Brazil. Mauricio de Sousa Productions was founded in 1959 and is considered to be one of the most successful cultural producers in the country. According to a leading Brazilian public opinion research agency, 97 per cent of Brazilian children and 96 per cent of their parents are familiar with the Monica and Friends characters. As one of the main players in the publishing market, with 86 per cent of market share, Mauricio de Sousa Productions has a product portfolio that goes beyond Monica and Friends comic strips: the company’s show on the Cartoon Network ranks third in audience viewing in the country and the company has produced animated movies, books, shows and games. However, despite its experience in publishing comic books in several countries, Mauricio de Sousa Productions (MSP)’s worldwide operations have not been as profitable and sustainable as expected. Aiming at expanding its global presence, MSP’s top management decided in 2014 to review the company’s internationalization strategy and operations to enhance the firm’s performance. Expected learning outcomes The case highlights the key factors facing firms when expanding from an emerging markets. Students are expected to discuss and evaluate options, thus developing their knowledge and decision processes related to family-owned business challenges and opportunities, international market selection theories and international market entry mode. Developing strategies to face challenges as those presented by competitors such as Disney should bring opportunities to students to think outside models and weigh risks. Finally, the case gives students opportunity to base their decision processes and evaluations on logistics problems as well as psychic and cultural distances. It also compels the students to appreciate the various challenges involved in exploiting international market with animation content and intellectual properties as a service. Supplementary materials Company presentation to use in the discussion introduction can be found in: www.monicaandfriends.com/content/video.php Subject code CSS 5: International business.

Internationalization and diversification strategies of companies from emerging economies: the case of fresh fruit export companies from Chile

The principal aim of this paper was to examine the internationalisation of Small and Medium-sized Enterprises (SMEs) with reference to the International Market Selection (IMS) and Entry Mode Selection (EMS) processes. To accomplish this, an investigation of the primary factors influencing IMS and EMS was conducted. Moreover, we sought to understand whether there was a relationship between the importance of Psychic Distance (PD) during these two processes and the characteristics of SMEs. Results revealed that SMEs are influenced by many factors, except by PD. A weak relationship between the number of markets and the influence of PD on EMS existed.

Managers need to screen and evaluate foreign markets before deciding on market entry and subsequent entry modes. Therefore, international market selection (IMS) has been the topic of much research in the international business domain. However, surprisingly few researchers have empirically studied the IMS process by providing detailed descriptions of how this process is conducted. Reviewing the literature on the subject, this paper aims to look at IMS from a practical point of view. Accordingly, the paper introduces a model, which includes the IMS criteria with their relevant weights needed to assess emerging markets for doing timber business. The Delphi method was used to gain the opinions of the experts in the field to develop a model that can assess the market attractiveness of a country for a firm in the timber industry looking to enter new markets.

Explores explanations for the continuance of agents or distributors and sales subsidiaries as international market entry and development modes and channels of distribution in the machine tool industry in the UK, and for entry mode evolution. Data were collected by in‐depth interviews with machine tool importers, interpreted qualitatively and related to conventional theoretical approaches. Results reveal, on the one hand, the progression of agents and distributors through acquisition to create foreign‐owned sales subsidiaries, and, on the other, regression back to the agency form. They also reveal a long‐standing persistence of a single channel of distribution.

The Influence of Decision-Maker Characteristics on the International Strategic Decision-Making Process: An SME Perspective

PurposeThe international hotel industry's growth has been achieved via the simultaneous divestment of real estate portfolios and adoption of low risk or “asset light” market entry modes such as management contracting. The management implications of these market entry mode decisions have however been poorly explored in the literature and the purpose of this paper is to address these omissions.Design/methodology/approachResearch was undertaken with senior human resource executives and their teams across eight international hotel companies (IHCs). Data were collected by means of semi‐structured interviews, observations and the collection of company documentation.FindingsThe findings demonstrate that management contracts as “asset light” options for international market entry not only provide valuable equity and strategic opportunities but also limit IHCs' chances of developing and sustaining human resource competitive advantage. Only where companies leverage their specific market entry expertise and develop mutually supportive relationships with their property‐owning partners can the challenges of managing human resources in these complex and diversely owned arrangements be surmounted.Research limitations/implicationsA limitation of this paper is the focus on the human resource specialists' perspectives of the impact of internationalization through asset light market entry modes.Originality/valueThis paper presents important insights into the tensions, practices and implications of management contracts as market entry modes which create complex inter‐organisational relationships subsequently shaping international human resource management strategies, practices and competitive advantage.

Institutions can be understood as the mechanism by which the rules societies operate under are formulated. As such, the international construction market is heavily affected by institutional factors. International market selection (IMS) is a fundamental decision that project contractors must make when entering the overseas arena. A variety of clues show that institutional factors have a complex impact on contractors’ IMS, but papers in this field tend to cover just one or two institutional factors or even ignore their role. Institutional factors exist in a multi-level social system, and the role of broader institutional factors in contractors’ IMS needs to be systematically explored. This study extensively collects institutional factors predicted to impact contractors’ IMS by literature review, selects 10 specific institutional factors from different perspectives, theoretically deduces their effects on contractor’s IMS, and takes international Chinese contractors’ IMS practice as the empirical research material and collects data for logistic regression analysis to test the assumptions. The results show that the IMS of contractors is affected by institutional factors from different levels and the effect of some factors on IMS must be weighted in a specific context. Specifically, IMSs of Chinese contractors are negatively affected by institutional distance but are not sensitive to the institutional environment. The results also confirm that if the host country and China have signed a trade agreement, belong to the same regional organization, or if China has provided foreign aid to a host country, Chinese contractors are more willing to choose the host market and central enterprises become more active in IMS than other firms. These findings can be expected to supplement IMS decision-making, with the empirical data presented affording an extension to the body of knowledge on contractors’ IMS process.

O'FARRELL P. N., Wood P. A. and ZHENG J. (1996) Internationalization of business services: an interregional analysis, Reg. Studies 30, 101–118. Internationalization behaviour by business service firms in Scotland and the South East of England is analysed. Evidence is outlined on level of internationalization, time profile of entry into foreign markets, location of foreign markets, mode of entry into first and largest foreign markets, and behavioural aspects of international market selection and entry mode choice. Initial foreign market entries occurred in the early 1960s with South East business service organizations entering foreign markets earlier, while there was a surge in internationalization by Scottish businesses after 1988. Few firms engaged in a process of explicitly choosing a foreign market to enter since the most common entry mechanism was responding to a particular ad hoc order. Similarly almost 70% of firms made the mode choice decision without considering any alternative modes. O'FARRELL P....

Learning outcomes The study enables students to critique the internationalisation strategy of an African business including elements of macroeconomic analysis, company fit with jurisdictions, non-market strategies and mode of entry. Case overview/synopsis Roland van Wijnen was the chief executive officer of Pretoria Portland Cement Company Limited (PPC), a 130-year-old cement maker based in South Africa. He joined after the business had embarked on an international expansion strategy that had taken the business to countries of Rwanda, the Democratic Republic of the Congo and Ethiopia in a matter of years. This expansion caused the deflation of the Johannesburg-listed company’s share price. The company failed to appreciate a number of success factors in each jurisdiction. The challenges included cultural misalignments, macroeconomic analysis and mode of market entry. The case dilemma involved the choices that van Wijnen faced in re-evaluating the international footprint of the business. Complexity academic level Undergraduate or postgraduate level. Supplementary material Teaching notes are available for educators only. Subject code CSS 5: International business.