Market entry modes in a multipolar world: Untangling the moderating effect of the political environment
Fecha
2015-06-01
Autores
De Villa, Maria Andrea
Rajwani, T.
Lawton, T.
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Título de la revista
ISSN de la revista
0969-5931
1873-6149
1873-6149
Título del volumen
Editor
Elsevier Ltd
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Resumen
We review the extant literature on market entry modes to explain the multi-levels of the political environment that can have a moderating effect on transnational corporations' (TNC) market entry processes. Based on a systematic review of the Uppsala model, transaction cost analysis, real options, eclectic paradigm, industrial network, and institutional approaches, we show that the market entry modes literature has largely excluded some aspects of the political environment from market entry mode decisions. Consequently, we continue to struggle with the question of how TNCs can factor the political environment into their foreign market entry processes. We suggest a more detailed analysis of the political environment may enable future research to address this challenge using corporate political activity literature and institutional theory. In particular, a distinction between macro and micro levels of analysis can explain how the moderating effect of the political environment on market entry mode decisions can be untangled. (C) 2014 Elsevier Ltd. All rights reserved.