The effect of cultural distance and home/host country development on the entry mode and innovation adoption of multinational firms
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Universidad de La Rioja
info
Editorial: Asociación de Economía y Dirección de Empresas
ISBN: 978-84-09-03882-4
Año de publicación: 2018
Páginas: 26
Congreso: XXVIII Congreso ACEDE. Generar y transferir conocimiento en una sociedad cambiante e interconectada. Valladolid, 24-26 de junio de 2018
Tipo: Aportación congreso
Resumen
The aim of this study is to gain further understanding of those factors that explain howmultinational enterprises (MNEs) internationalize and compete in foreign countries. In particular, weunderscore the role of MNEs origin when examining the broadly accepted influence of the culturaldistance on entry mode decisions. Moreover, we argue that the entry mode will subsequently determinethe way subsidiaries implement their innovation strategies. Based on arguments from transaction costtheory, our contention is that joint ventures will present lower adoption speed of innovations than wholly-owned subsidiaries. Finally, the moderating role of the host country environment in reducing potentialopportunism is considered. We test our hypothesis on the mobile telecommunication sector during theperiod 2000-2017. Based on information of 18 multinational groups that operate in the five continents, ourfindings give support to our hypotheses