Subsidiary Development Flashcards
What did Camino/Cazorla (1998) show regarding foreign market entries by SMEs?
Respondents generally confirm the role of experience in investment decisions
What did Erramilli/Srivastava/Kim (1999) find in the Internationalization of Korean firms?
Experience and geographical distance positively influence the share of ownership in new foreign subsidiaries.
-ownership increases with time
What did Uhlenbruck (2004)’s study show?
PG 192 DIAGRAM
Cultural distance as a negative moderator of the relationship between prior experience and subsidiary growth
Which behavioral approaches to strategic resource allocation decisions relate to behavioral economics?
Fairness, Endowment, Overconfidence, Confirmatory bias, Herding Behavior
What are other applications of strategic resource allocation decisions?
- Behavioral finance
- behavioral supply chain management
What are behavioral biases in strategic decision making ?
- escalation
- aspiration
- attention
- hindsight bias
- bounded ethicality
- 1/n rule
What are the three Es of MNE internationalization process?
- evolution
- Episode
- Epoch
What is “Evolution” comprised of in the MNE internationalization process?
Results from daily business, self-organizing mechanisms, or ad-hoc decisions
Takes places almost permanently
Slow changes, concerns small parts of the MNE
What is “Episode” comprised of in the MNE internationalization process?
Certain processes/actions that increase level of internationalization drastically
Takes several months up to several years
Rapid changes, concerns whole units (e.g., departments) or whole corporation
What is “Epoch” comprised of in the MNE internationalization process?
Specific strategy which dominates internationalization activities for a certain period
Takes up to 10-15 years
Can comprise periods of slow and rapid changes, concerns whole corporation
