The Effects of Repetitive Momentum on Foreign Sequential Entry Mode Choice by Chinese MNEs: A Structural Inertia Perspective

Received:September 15, 2017  Revised:September 15, 2017

Key Words:  structural inertia theory, firm age, firm size, ownership identity, sequential entry mode choice

Author NameAffiliation
Gangxiang XU* School of Business and Management, Shaoxing University 
Bin GUO School of Management, Zhejiang University 
Wen LI School of Management, Zhejiang University 

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Abstract:
      Drawing on structural inertia theory, we argue that firms repeat their past entry mode choices due to inertia forces, and these forces are strengthened in old, large or state-owned firms. Our empirical results, based on the quantitative analysis of a sample of 121 Chinese publicly listed firms with 564 foreign entry incidents in the 2001-2012 period, provide supportive evidence for our theoretical argument. Our study offers further insights into firms’ repeated past activities in the context of entry mode choice by providing a unique lens of structural inertia theory. Zhejiang Provincial Natural Science Foundation of China (No.LQ18G020003 )

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