Research output: Contribution to journal › Article › peer-review
Entry modes and liability of foreignness effects : Evidence from Russian firms on the German market. / Panibratov, Andrey Yu.; Ribberink, Natalia; Veselova, Anna S.; Nefedov, Konstantin S.
In: Organizations and Markets in Emerging Economies, Vol. 9, No. 1, 2018, p. 106-122.Research output: Contribution to journal › Article › peer-review
}
TY - JOUR
T1 - Entry modes and liability of foreignness effects
T2 - Evidence from Russian firms on the German market
AU - Panibratov, Andrey Yu.
AU - Ribberink, Natalia
AU - Veselova, Anna S.
AU - Nefedov, Konstantin S.
N1 - Panibratov, A. Entry modes and liability of foreignness effects: Evidence from Russian firms on the German market / A. Panibratov, N. Ribberink, A. Veselova, K. Nefedov // Organizations and Markets in Emerging Economies. – 2018. - Vol. 9, № 1. - P. 106-122.
PY - 2018
Y1 - 2018
N2 - Foreign subsidiaries are at a disadvantage as compared to domestic enterprises, which is especially the case for emerging market firms in more developed economies. In this paper we apply liability of foreignness (LOF) concept to address the issue of these disadvantages. We consider LOF effects associated with equity vs. non-equity entry modes for Russian firms when penetrating the German market. The paper presents the results of a pilot study of 41 subsidiaries of Russian firms operating in different regions of Germany. Our results show that investors are more concerned about information, customers and partnerships, which can be explained by preeminent reliance on their own resources, while exporters appeared to be driven mostly by image considerations indicating minor interest in other characteristics of the host market. Although both exporters and investors experience significant negative effects from the lack of proper institutional and business knowledge on the host market, these effects vary for equity and non-equity entry modes. We suggest instruments to mitigate these effects, including cooperation with institutional agents, which is especially important for FDI strategy.
AB - Foreign subsidiaries are at a disadvantage as compared to domestic enterprises, which is especially the case for emerging market firms in more developed economies. In this paper we apply liability of foreignness (LOF) concept to address the issue of these disadvantages. We consider LOF effects associated with equity vs. non-equity entry modes for Russian firms when penetrating the German market. The paper presents the results of a pilot study of 41 subsidiaries of Russian firms operating in different regions of Germany. Our results show that investors are more concerned about information, customers and partnerships, which can be explained by preeminent reliance on their own resources, while exporters appeared to be driven mostly by image considerations indicating minor interest in other characteristics of the host market. Although both exporters and investors experience significant negative effects from the lack of proper institutional and business knowledge on the host market, these effects vary for equity and non-equity entry modes. We suggest instruments to mitigate these effects, including cooperation with institutional agents, which is especially important for FDI strategy.
KW - Entry strategy
KW - Social costs
KW - Russian firms
KW - Liability of foreignness
KW - German market
KW - SCOPUS
KW - WOS
KW - liability of foreignness
KW - social costs
KW - entry strategy
KW - WOS
KW - SCOPUS
KW - Liability of foreignness
KW - Russian firms
KW - German market
KW - Social costs
KW - Entry strategy
UR - http://www.scopus.com/inward/record.url?scp=85047736566&partnerID=8YFLogxK
U2 - 10.15388/omee.2018.10.00006
DO - 10.15388/omee.2018.10.00006
M3 - Article
VL - 9
SP - 106
EP - 122
JO - Organizations and Markets in Emerging Economies
JF - Organizations and Markets in Emerging Economies
SN - 2029-4581
IS - 1
ER -
ID: 28576223