Institutional distances and equity-based entry modes of multinational companies in foreign countries
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Tese |
Idioma: | eng |
Título da fonte: | Biblioteca Digital de Teses e Dissertações da ESPM |
Texto Completo: | http://tede2.espm.br/handle/tede/637 |
Resumo: | The decision to enter international markets is a central research topic in International Business - IB. Ownership is crucial when a firm decides to engage in foreign investments by making cross-border acquisitions. The extant literature has shown that ownership is contingent on the quality of the institutions at the target destination. Additionally, the concept of institutional distance and direction between origin and destination brought important advances in the IB literature. The conventional IB literature suggests that several country-specific factors influence the FDI. However, this opinion is not unanimous. Some researchers argue that the country is not the appropriate level of analysis, and the FDI phenomenon should be studied at the subnational level. This Ph.D. dissertation uses the theoretical support of neo-institutionalism to investigate the influence of institutional distances on ownership decisions in cross-border acquisitions. I analyze the existing literature on institutional distances and equity-based entry modes and focus the study on normative institutions, one of Scott's three institutional pillars (2001) that has not received much attention. I focus the study on the constructs of normative distance and direction to understand the influence on ownership decisions at the national level of analysis. At the subnational level, I analyze the impact of institutional distances on cross-border acquisitions in global cities, which attract MNCs and their subsidiaries due to their unique characteristics. The results reveal that the magnitude and direction of distance impact ownership choice. In large normative distances, the firm opts for partial acquisition when addressing more developed (positive direction) and less developed countries (negative direction). A partial acquisition was not expected from firms targeting more developed countries. Acquirers with high and low technology development make similar decisions, preferring total acquisitions at small normative distances and partial acquisitions at large normative distances in positive and negative directions. The results of this study do not confirm that acquirers prefer greater control over high technology development targets in institutionally less developed countries over large institutional distances. When analyzing firms' behavior at the subnational level, the results were similar to a country level, showing that acquirers' preference is for partial acquisition in most industries in global cities. This study advances our knowledge of the influence of normative institutional distances on ownership in cross-border acquisitions and the impact of distance direction in that relationship. Our in-depth analysis of the effects of normative institutional distances incorporating magnitude and direction has brought greater clarity to the role and influence of these institutions in MNC decisions. While the results shed more light on IB theory, they also motivate new research using the normative dimension of institutional distances in other contexts and MNC decisions. This study makes a second contribution by introducing the concept of global cities in studies on what influence institutions at the subnational level have on ownership decisions. Finally, its third contribution is to use neo-institutionalism as theoretical support for studying the effects of the asymmetry of institutional distances on ownership decisions in cross-border acquisitions. |
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Ogasavara, Mário HenriquePereira, Renato Telo de Freitas BarbosaStrehlau, SuzaneCahen, Fernanda Cecilia RibeiroPinto, Claudia Sofia FriasPereira, Renato Telo de Freitas Barbosa218.186.737-20http://buscatextual.cnpq.br/buscatextual/visualizacv.do?id=K8703182P4&tokenCaptchar=03AIIukzidh2fe8xlRnD7L2fVJziv5kHur_I767QgUpSueuTJ3KAanfS1c7FMSVpt8KNFSBMC9Pgx528hC4Vmey-__9jdIZRNLxjDxK-hIeyRTq1KvSVfIGQloWjR2upMn1GgQ-6nRZgbda-LvCC2xmoW8pNOFKged49NqbgMCEzEW8hMMexABn2xpXoFsH_HW-qEVb7c0aDiiogv3ChpYrCdryrtYq5vTV0cjBgHunlaBLHCNKvEi-jUT0A5jmkgoZDMWdhmaGYp_5bBqqAkP6UZqafzl0RBLDzh1uqe_RmAN7KPgwW1W258t6xyug8APyrm5OqojhEXvSy5mmsi_n2kmQbToziveqtTsnBr9G3Q3iiCjTAQs8yb8JBqgfwKSXc9tZxniikDgeeIHLBxgUoeRaJ7jOeRsX9Bcgl4dxOrG1saanvFcqQVBpAA--0i9Fx6XXOgMUCUA-rFjH12foAcMBiXZO0AAOJeEg9mrSZsu9a9jvWm_K0CzEDtYxRE2w1R8vAqFnfIVFUzDhRrRTD0r8cSZqe_l6ASilva, Fernando Jorge Moreira da2022-09-21T15:38:49Z2022-04-28Silva, Fernando Jorge Moreira da. Institutional distances and equity-based entry modes of multinational companies in foreign countries. 2022. [193 f.]. Tese (Programa de Doutorado em Administração com Concentração em Gestão Internacional) - Escola Superior de Propaganda e Marketing, [São Paulo] .http://tede2.espm.br/handle/tede/637The decision to enter international markets is a central research topic in International Business - IB. Ownership is crucial when a firm decides to engage in foreign investments by making cross-border acquisitions. The extant literature has shown that ownership is contingent on the quality of the institutions at the target destination. Additionally, the concept of institutional distance and direction between origin and destination brought important advances in the IB literature. The conventional IB literature suggests that several country-specific factors influence the FDI. However, this opinion is not unanimous. Some researchers argue that the country is not the appropriate level of analysis, and the FDI phenomenon should be studied at the subnational level. This Ph.D. dissertation uses the theoretical support of neo-institutionalism to investigate the influence of institutional distances on ownership decisions in cross-border acquisitions. I analyze the existing literature on institutional distances and equity-based entry modes and focus the study on normative institutions, one of Scott's three institutional pillars (2001) that has not received much attention. I focus the study on the constructs of normative distance and direction to understand the influence on ownership decisions at the national level of analysis. At the subnational level, I analyze the impact of institutional distances on cross-border acquisitions in global cities, which attract MNCs and their subsidiaries due to their unique characteristics. The results reveal that the magnitude and direction of distance impact ownership choice. In large normative distances, the firm opts for partial acquisition when addressing more developed (positive direction) and less developed countries (negative direction). A partial acquisition was not expected from firms targeting more developed countries. Acquirers with high and low technology development make similar decisions, preferring total acquisitions at small normative distances and partial acquisitions at large normative distances in positive and negative directions. The results of this study do not confirm that acquirers prefer greater control over high technology development targets in institutionally less developed countries over large institutional distances. When analyzing firms' behavior at the subnational level, the results were similar to a country level, showing that acquirers' preference is for partial acquisition in most industries in global cities. This study advances our knowledge of the influence of normative institutional distances on ownership in cross-border acquisitions and the impact of distance direction in that relationship. Our in-depth analysis of the effects of normative institutional distances incorporating magnitude and direction has brought greater clarity to the role and influence of these institutions in MNC decisions. While the results shed more light on IB theory, they also motivate new research using the normative dimension of institutional distances in other contexts and MNC decisions. This study makes a second contribution by introducing the concept of global cities in studies on what influence institutions at the subnational level have on ownership decisions. Finally, its third contribution is to use neo-institutionalism as theoretical support for studying the effects of the asymmetry of institutional distances on ownership decisions in cross-border acquisitions.A decisão de entrar em mercados internacionais é um tema central de pesquisa em Negócios Internacionais (NI). Definir o nível de participação no capital da empresa alvo é crucial quando uma empresa decide se envolver em investimentos estrangeiros por meio de aquisições internacionais. A literatura existente mostra que o nível de participação no capital depende da qualidade das instituições no local de destino. Além disso, o conceito de distância institucional e direção entre origem e destino trouxe importantes avanços na literatura de NI. A literatura convencional do NI sugere que fatores específicos de cada país influenciam o Investimento Direto Estrangeiro - IDE. No entanto, esta opinião não é unânime. Alguns pesquisadores argumentam que o país não é o nível adequado de análise, e o fenômeno do IDE deve ser estudado em nível subnacional. Esta tese utiliza o suporte teórico do novo institucionalismo para investigar a influência das distâncias institucionais nas decisões de propriedade em aquisições internacionais. Analiso a literatura existente sobre distâncias institucionais e modo de entrada baseado em participação acionária e foco o estudo em instituições normativas, um dos três pilares institucionais de Scott (2001) que não tem recebido muita atenção. Concentro o estudo nos construtos de distância normativa e direção para entender a influência nas decisões de propriedade no nível nacional de análise. No nível subnacional, analiso o impacto das distâncias institucionais nas aquisições internacionais em cidades globais, as quais atraem multinacionais e suas subsidiárias por suas características únicas. Os resultados revelam que a magnitude e a direção da distância impactam a escolha do nível de propriedade. Em grandes distâncias normativas, a empresa opta pela aquisição parcial ao entrar em países mais desenvolvidos (direção positiva) e menos desenvolvidos (direção negativa). Não era esperado uma aquisição parcial de empresas alvo localizadas em países mais desenvolvidos. Adquirentes com alto e baixo desenvolvimento tecnológico tomam decisões semelhantes, e preferem aquisições totais em pequenas distâncias normativas e aquisições parciais em grandes distâncias normativas tanto em direção positiva como negativa. Os resultados deste estudo não confirmam que os adquirentes preferem maior controle sobre a empresa com alto desenvolvimento tecnológico em países institucionalmente menos desenvolvidos em grandes distâncias institucionais. Ao analisar o comportamento das empresas no nível subnacional, os resultados foram semelhantes ao nível do país, mostrando que a preferência dos adquirentes é pela aquisição parcial na maioria das empresas nas cidades globais. Este estudo avança nosso conhecimento sobre a relação entre as distâncias institucionais normativas e a participação acionária em aquisições internacionais, e a influência da direção da distância sobre essa relação. Nossa análise aprofundada dos efeitos das distâncias institucionais normativas incorporando magnitude e direção trouxe maior clareza ao papel e influência dessas instituições nas decisões das empresas multinacionais-EMN. Ao mesmo tempo em que os resultados obtidos lançam mais luz sobre a teoria do NI, eles também motivam novas pesquisas utilizando a dimensão normativa das distâncias institucionais em outros contextos e decisões das EMN. Este estudo traz uma segunda contribuição ao introduzir o conceito de cidades globais nos estudos sobre a influência das instituições em nível subnacional nas decisões sobre o nível de propriedade. Por fim, a terceira contribuição é utilizar o novo institucionalismo como suporte teórico para estudar os efeitos da assimetria das distâncias institucionais nas decisões de propriedade em aquisições internacionais.Submitted by Débora Silva (deborasilva@espm.br) on 2022-09-20T15:33:50Z No. of bitstreams: 1 Fernando_Jorge_Moreira_da_Silva.pdf: 1621771 bytes, checksum: 715a591d0eb466af8cba05de2fe8b22c (MD5)Approved for entry into archive by Débora Silva (deborasilva@espm.br) on 2022-09-21T15:37:23Z (GMT) No. of bitstreams: 1 Fernando_Jorge_Moreira_da_Silva.pdf: 1621771 bytes, checksum: 715a591d0eb466af8cba05de2fe8b22c (MD5)Approved for entry into archive by Débora Silva (deborasilva@espm.br) on 2022-09-21T15:38:39Z (GMT) No. of bitstreams: 1 Fernando_Jorge_Moreira_da_Silva.pdf: 1621771 bytes, checksum: 715a591d0eb466af8cba05de2fe8b22c (MD5)Made available in DSpace on 2022-09-21T15:38:49Z (GMT). No. of bitstreams: 1 Fernando_Jorge_Moreira_da_Silva.pdf: 1621771 bytes, checksum: 715a591d0eb466af8cba05de2fe8b22c (MD5) Previous issue date: 2022-04-28application/pdfhttp://tede2.espm.br/retrieve/2255/Fernando_Jorge_Moreira_da_Silva.pdf.jpgengEscola Superior de Propaganda e MarketingPrograma de Doutorado em Administração com Concentração em Gestão InternacionalESPMBrasilESPM::Pós-Graduação Stricto Sensugestão internacional; estratégia; distância institucional; aquisições internacionais; propriedade da subsidiária; cidades globaisinternational management; strategy; institutional distance; cross-border acquisitions; ownership; global citiesCIENCIAS SOCIAIS APLICADAS::ADMINISTRACAOInstitutional distances and equity-based entry modes of multinational companies in foreign countriesinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/doctoralThesis-7696919625011687972500500600-44551937530918523288024035432632778221info:eu-repo/semantics/openAccessreponame:Biblioteca Digital de Teses e Dissertações da ESPMinstname:Escola Superior de Propaganda e Marketing (ESPM)instacron:ESPMTHUMBNAILFernando_Jorge_Moreira_da_Silva.pdf.jpgFernando_Jorge_Moreira_da_Silva.pdf.jpgimage/jpeg1943http://tede2.espm.br:8080/tede/bitstream/tede/637/4/Fernando_Jorge_Moreira_da_Silva.pdf.jpgcc73c4c239a4c332d642ba1e7c7a9fb2MD54TEXTFernando_Jorge_Moreira_da_Silva.pdf.txtFernando_Jorge_Moreira_da_Silva.pdf.txttext/plain443828http://tede2.espm.br:8080/tede/bitstream/tede/637/3/Fernando_Jorge_Moreira_da_Silva.pdf.txt16d417f141f77e57bcadd37d0cdf71c9MD53ORIGINALFernando_Jorge_Moreira_da_Silva.pdfFernando_Jorge_Moreira_da_Silva.pdfapplication/pdf1621771http://tede2.espm.br:8080/tede/bitstream/tede/637/2/Fernando_Jorge_Moreira_da_Silva.pdf715a591d0eb466af8cba05de2fe8b22cMD52LICENSElicense.txtlicense.txttext/plain; charset=utf-81912http://tede2.espm.br:8080/tede/bitstream/tede/637/1/license.txt652c58b294e08ded719d10bdbc42f8ceMD51tede/6372022-09-22 01:00:23.519oai:tede2.espm.br: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Biblioteca Digital de Teses e Dissertaçõeshttps://tede2.espm.br/http://tede2.espm.br/oai/requestacervodigital@espm.br||hribeiro@espm.bropendoar:2022-09-22T04:00:23Biblioteca Digital de Teses e Dissertações da ESPM - Escola Superior de Propaganda e Marketing (ESPM)false |
dc.title.por.fl_str_mv |
Institutional distances and equity-based entry modes of multinational companies in foreign countries |
title |
Institutional distances and equity-based entry modes of multinational companies in foreign countries |
spellingShingle |
Institutional distances and equity-based entry modes of multinational companies in foreign countries Silva, Fernando Jorge Moreira da gestão internacional; estratégia; distância institucional; aquisições internacionais; propriedade da subsidiária; cidades globais international management; strategy; institutional distance; cross-border acquisitions; ownership; global cities CIENCIAS SOCIAIS APLICADAS::ADMINISTRACAO |
title_short |
Institutional distances and equity-based entry modes of multinational companies in foreign countries |
title_full |
Institutional distances and equity-based entry modes of multinational companies in foreign countries |
title_fullStr |
Institutional distances and equity-based entry modes of multinational companies in foreign countries |
title_full_unstemmed |
Institutional distances and equity-based entry modes of multinational companies in foreign countries |
title_sort |
Institutional distances and equity-based entry modes of multinational companies in foreign countries |
author |
Silva, Fernando Jorge Moreira da |
author_facet |
Silva, Fernando Jorge Moreira da |
author_role |
author |
dc.contributor.advisor1.fl_str_mv |
Ogasavara, Mário Henrique |
dc.contributor.advisor-co1.fl_str_mv |
Pereira, Renato Telo de Freitas Barbosa |
dc.contributor.referee1.fl_str_mv |
Strehlau, Suzane |
dc.contributor.referee2.fl_str_mv |
Cahen, Fernanda Cecilia Ribeiro |
dc.contributor.referee3.fl_str_mv |
Pinto, Claudia Sofia Frias |
dc.contributor.referee4.fl_str_mv |
Pereira, Renato Telo de Freitas Barbosa |
dc.contributor.authorID.fl_str_mv |
218.186.737-20 |
dc.contributor.authorLattes.fl_str_mv |
http://buscatextual.cnpq.br/buscatextual/visualizacv.do?id=K8703182P4&tokenCaptchar=03AIIukzidh2fe8xlRnD7L2fVJziv5kHur_I767QgUpSueuTJ3KAanfS1c7FMSVpt8KNFSBMC9Pgx528hC4Vmey-__9jdIZRNLxjDxK-hIeyRTq1KvSVfIGQloWjR2upMn1GgQ-6nRZgbda-LvCC2xmoW8pNOFKged49NqbgMCEzEW8hMMexABn2xpXoFsH_HW-qEVb7c0aDiiogv3ChpYrCdryrtYq5vTV0cjBgHunlaBLHCNKvEi-jUT0A5jmkgoZDMWdhmaGYp_5bBqqAkP6UZqafzl0RBLDzh1uqe_RmAN7KPgwW1W258t6xyug8APyrm5OqojhEXvSy5mmsi_n2kmQbToziveqtTsnBr9G3Q3iiCjTAQs8yb8JBqgfwKSXc9tZxniikDgeeIHLBxgUoeRaJ7jOeRsX9Bcgl4dxOrG1saanvFcqQVBpAA--0i9Fx6XXOgMUCUA-rFjH12foAcMBiXZO0AAOJeEg9mrSZsu9a9jvWm_K0CzEDtYxRE2w1R8vAqFnfIVFUzDhRrRTD0r8cSZqe_l6A |
dc.contributor.author.fl_str_mv |
Silva, Fernando Jorge Moreira da |
contributor_str_mv |
Ogasavara, Mário Henrique Pereira, Renato Telo de Freitas Barbosa Strehlau, Suzane Cahen, Fernanda Cecilia Ribeiro Pinto, Claudia Sofia Frias Pereira, Renato Telo de Freitas Barbosa |
dc.subject.por.fl_str_mv |
gestão internacional; estratégia; distância institucional; aquisições internacionais; propriedade da subsidiária; cidades globais |
topic |
gestão internacional; estratégia; distância institucional; aquisições internacionais; propriedade da subsidiária; cidades globais international management; strategy; institutional distance; cross-border acquisitions; ownership; global cities CIENCIAS SOCIAIS APLICADAS::ADMINISTRACAO |
dc.subject.eng.fl_str_mv |
international management; strategy; institutional distance; cross-border acquisitions; ownership; global cities |
dc.subject.cnpq.fl_str_mv |
CIENCIAS SOCIAIS APLICADAS::ADMINISTRACAO |
description |
The decision to enter international markets is a central research topic in International Business - IB. Ownership is crucial when a firm decides to engage in foreign investments by making cross-border acquisitions. The extant literature has shown that ownership is contingent on the quality of the institutions at the target destination. Additionally, the concept of institutional distance and direction between origin and destination brought important advances in the IB literature. The conventional IB literature suggests that several country-specific factors influence the FDI. However, this opinion is not unanimous. Some researchers argue that the country is not the appropriate level of analysis, and the FDI phenomenon should be studied at the subnational level. This Ph.D. dissertation uses the theoretical support of neo-institutionalism to investigate the influence of institutional distances on ownership decisions in cross-border acquisitions. I analyze the existing literature on institutional distances and equity-based entry modes and focus the study on normative institutions, one of Scott's three institutional pillars (2001) that has not received much attention. I focus the study on the constructs of normative distance and direction to understand the influence on ownership decisions at the national level of analysis. At the subnational level, I analyze the impact of institutional distances on cross-border acquisitions in global cities, which attract MNCs and their subsidiaries due to their unique characteristics. The results reveal that the magnitude and direction of distance impact ownership choice. In large normative distances, the firm opts for partial acquisition when addressing more developed (positive direction) and less developed countries (negative direction). A partial acquisition was not expected from firms targeting more developed countries. Acquirers with high and low technology development make similar decisions, preferring total acquisitions at small normative distances and partial acquisitions at large normative distances in positive and negative directions. The results of this study do not confirm that acquirers prefer greater control over high technology development targets in institutionally less developed countries over large institutional distances. When analyzing firms' behavior at the subnational level, the results were similar to a country level, showing that acquirers' preference is for partial acquisition in most industries in global cities. This study advances our knowledge of the influence of normative institutional distances on ownership in cross-border acquisitions and the impact of distance direction in that relationship. Our in-depth analysis of the effects of normative institutional distances incorporating magnitude and direction has brought greater clarity to the role and influence of these institutions in MNC decisions. While the results shed more light on IB theory, they also motivate new research using the normative dimension of institutional distances in other contexts and MNC decisions. This study makes a second contribution by introducing the concept of global cities in studies on what influence institutions at the subnational level have on ownership decisions. Finally, its third contribution is to use neo-institutionalism as theoretical support for studying the effects of the asymmetry of institutional distances on ownership decisions in cross-border acquisitions. |
publishDate |
2022 |
dc.date.accessioned.fl_str_mv |
2022-09-21T15:38:49Z |
dc.date.issued.fl_str_mv |
2022-04-28 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/doctoralThesis |
format |
doctoralThesis |
status_str |
publishedVersion |
dc.identifier.citation.fl_str_mv |
Silva, Fernando Jorge Moreira da. Institutional distances and equity-based entry modes of multinational companies in foreign countries. 2022. [193 f.]. Tese (Programa de Doutorado em Administração com Concentração em Gestão Internacional) - Escola Superior de Propaganda e Marketing, [São Paulo] . |
dc.identifier.uri.fl_str_mv |
http://tede2.espm.br/handle/tede/637 |
identifier_str_mv |
Silva, Fernando Jorge Moreira da. Institutional distances and equity-based entry modes of multinational companies in foreign countries. 2022. [193 f.]. Tese (Programa de Doutorado em Administração com Concentração em Gestão Internacional) - Escola Superior de Propaganda e Marketing, [São Paulo] . |
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http://tede2.espm.br/handle/tede/637 |
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eng |
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Escola Superior de Propaganda e Marketing |
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Escola Superior de Propaganda e Marketing |
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