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Market entry modes in a multipolar world: Untangling the moderating effect of the political environment

De Villa, Maria A and Rajwani, Tazeeb and Lawton, Thomas (2015) 'Market entry modes in a multipolar world: Untangling the moderating effect of the political environment.' International Business Review, 24 (3). pp. 419-429. ISSN 0969-5931

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Abstract

We review the extant literature on market entry modes to explain the multi-levels of the political environment that can have a moderating effect on transnational corporations' (TNC) market entry processes. Based on a systematic review of the Uppsala model, transaction cost analysis, real options, eclectic paradigm, industrial network, and institutional approaches, we show that the market entry modes literature has largely excluded some aspects of the political environment from market entry mode decisions. Consequently, we continue to struggle with the question of how TNCs can factor the political environment into their foreign market entry processes. We suggest a more detailed analysis of the political environment may enable future research to address this challenge using corporate political activity literature and institutional theory. In particular, a distinction between macro and micro levels of analysis can explain how the moderating effect of the political environment on market entry mode decisions can be untangled.

Item Type: Article
Uncontrolled Keywords: Market entry modes; Political environment; Transnational corporations
Subjects: H Social Sciences > HF Commerce
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Essex Business School
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 13 Feb 2017 15:30
Last Modified: 06 Jan 2022 14:44
URI: http://repository.essex.ac.uk/id/eprint/18822

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