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Institutional Environments and Mode of Entry

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Institutional Environments and Mode of Entry

Kinuma, Emile (2011) Institutional Environments and Mode of Entry. Masters thesis, Concordia University.

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Abstract

Mode of entry studies the international behavior of multinational firms and the factors that impact their international behavior. This study examines the impact the macro level institutions of a host country on the entry strategy of a foreign multinational enterprise (MNE). The framework developed in the study focuses on two sets of institutions, formal institutions which comprise the political and judicial rules and informal institutions which are comprised of cultural and business practices that are not formally codified. The results of the study provide further empirical evidence that the institutional environment influences MNE behavior. In particular this study found that, for a constant level of informality, the increased degree of formality of an institutional environment encourages multinational firms to choose acquisitions over joint ventures. Meanwhile the increased degree of formality and informality makes MNEs more likely to choose joint ventures over acquisitions and strategic alliances as modes of entry.

Divisions:Concordia University > John Molson School of Business
Item Type:Thesis (Masters)
Authors:Kinuma, Emile
Institution:Concordia University
Degree Name:M. Sc.
Program:Administration (Management option)
Date:03 May 2011
Thesis Supervisor(s):Farashahi, Mehdi
ID Code:7468
Deposited By:EMILE KINUMA
Deposited On:09 Jun 2011 15:50
Last Modified:09 Jan 2012 15:52
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