The international management literature has presented inconclusive results about the effect of institutional voids in a host country on entrant firms’ resource commitment. With the lens of institutional theory and transaction cost theory, this article examines how institutional voids in an emerging market influence a firm’s decision to move resources in that market. Resource commitment in an emerging market is examined in terms of the degree of control of the entry strategy employed. The theory presented argues that as institutional voids in a firm’s host country escalate, the firm sets out different priority actions to mitigate behavioral and environmental uncertainties in the host country, that in turn affect the degree of control of its entry modes. By relying on a sample of 90 Italian firms operating in China between 2001 and 2010, the results support the hypothesis that the institutional voids–entry mode degree of control relationship displays an inverted U-shape.

How much control do firms exercise over their resources when entering emerging markets? The influence of institutional voids on entry mode degree of control / Claudio Giachetti; Augustine Awuah Peprah. - In: BUSINESS RESEARCH QUARTERLY. - ISSN 2340-9444. - STAMPA. - 25:2(2022), pp. 122-142. [10.1177/2340944420924402]

How much control do firms exercise over their resources when entering emerging markets? The influence of institutional voids on entry mode degree of control

Claudio Giachetti
;
2022

Abstract

The international management literature has presented inconclusive results about the effect of institutional voids in a host country on entrant firms’ resource commitment. With the lens of institutional theory and transaction cost theory, this article examines how institutional voids in an emerging market influence a firm’s decision to move resources in that market. Resource commitment in an emerging market is examined in terms of the degree of control of the entry strategy employed. The theory presented argues that as institutional voids in a firm’s host country escalate, the firm sets out different priority actions to mitigate behavioral and environmental uncertainties in the host country, that in turn affect the degree of control of its entry modes. By relying on a sample of 90 Italian firms operating in China between 2001 and 2010, the results support the hypothesis that the institutional voids–entry mode degree of control relationship displays an inverted U-shape.
2022
How much control do firms exercise over their resources when entering emerging markets? The influence of institutional voids on entry mode degree of control / Claudio Giachetti; Augustine Awuah Peprah. - In: BUSINESS RESEARCH QUARTERLY. - ISSN 2340-9444. - STAMPA. - 25:2(2022), pp. 122-142. [10.1177/2340944420924402]
Claudio Giachetti; Augustine Awuah Peprah
File in questo prodotto:
File Dimensione Formato  
Giachetti-Peprah-2022_BRQ.pdf

accesso aperto

Descrizione: final version
Tipo: Versione (PDF) editoriale
Licenza: Licenza per Accesso Aperto. Creative Commons Attribuzione - Non commerciale - Non opere derivate (CCBYNCND)
Dimensione 359.27 kB
Formato Adobe PDF
359.27 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/952830
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 3
  • ???jsp.display-item.citation.isi??? 3
social impact