Entry modes and liability of foreignness effects

Evidence from Russian firms on the German market

Результат исследований: Научные публикации в периодических изданияхстатьянаучнаярецензирование

2 Цитирования (Scopus)

Выдержка

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.
Язык оригиналаанглийский
Страницы (с-по)106-122
Число страниц17
ЖурналOrganizations and Markets in Emerging Economies
Том9
Номер выпуска1
DOI
СостояниеОпубликовано - 2018

Отпечаток

foreignness
liability
firm
market
equity
investor
evidence
customer
economy
effect
Liability of foreignness
Entry mode
lack
resource
resources
experience
Exporters
Equity
Disadvantage
Investors

Ключевые слова

  • Entry strategy
  • Social costs
  • Russian firms
  • Liability of foreignness
  • German market
  • SCOPUS
  • WOS

Предметные области Scopus

  • Бизнес, управление и бухгалтерский учет (все)

Цитировать

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title = "Entry modes and liability of foreignness effects: Evidence from Russian firms on the German market",
abstract = "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.",
keywords = "Entry strategy, Social costs, Russian firms, Liability of foreignness, German market, SCOPUS, WOS, liability of foreignness, social costs, entry strategy, WOS, SCOPUS",
author = "Panibratov, {Andrey Yu.} and Natalia Ribberink and Veselova, {Anna S.} and Nefedov, {Konstantin S.}",
note = "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. – Volume 9, Issue 1. – P. 106-122.",
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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.

В: Organizations and Markets in Emerging Economies, Том 9, № 1, 2018, стр. 106-122.

Результат исследований: Научные публикации в периодических изданияхстатьянаучнаярецензирование

TY - JOUR

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AU - Veselova, Anna S.

AU - Nefedov, Konstantin S.

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PY - 2018

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