Foreign Entry, Cultural Barriers and Learning

/ FOREIGN ENTRY, CULTURAL BARRIERS, AND HARRY G. BARKEMA and JOHN H. J. BELL Deparfment of Economics, Tilburg University, Tilburg, The Netherlands T- JOHANNES M. PENNINGS The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, U.S.A. This study examines the higher status of transcendental entries. Hypotheses argon developed on the mode (start-ups vs. acquisitions) and possession srructure (wholly owned vs. joint ventures) in relative to cultural aloofness. The hypotheses are tested within a manikin of organizational learning, development data on 225 entries that 13 Dutch firms carried out from 1966 onwards. Results found that the presence of cultural barriers punctuates an organizations learning. Cultural distance requiring the firm is a prominent component in outside(prenominal) entry whenever this involves an otherwise firm, to engage in effigy layer acculturation. We also identib locational paths of learning. The longevity of acquisitio ns i positively injluenced by front entries of the firm in the same s country. Similarly, the longeviry of unknown entries, in which the firm has a majority stake, improves whenever the expanding firm occupied in prior entries in the same country and in other countries in the same cultural block.

During the last decades firms fox progressively committed themselves to global markets. Globalization confers access to unconnected markets, tacky labor, and other advantages. Yet, foreign entry does not execute without costs. When firms vary beyond their field of study b dictates, they have to adjust to a foreign national culture. Whenever firms draw other organizations into the walk t o the unknown (Johanson and Vahlne, 1977), f! or employment through a joint venture (JV) or an instantaneously acquisition, they have to contend with both a national and a corporate culture. However, over time, firms may learn from antecedent globalisation efforts and reduce the barriers that prevent them from freely tapping cheap labor, mod technology, and foreign product...If you want to get a full essay, order it on our website: OrderEssay.net

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