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 Name | Affiliation | 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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