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The purpose of this paper is to argue that comparative advantage of host country’s industry can be one of the significant determinants of the decision on mergers and acquisitions (M&A) or greenfield in foreign direct investment (FDI).

The authors extract five-related properties of an industry with comparative advantage in a host nation from Bernard et al.’s (2007) international trade model with heterogeneous firms and attempt to empirically test their roles in a multinational enterprise’s (MNE) M&A or greenfield investment decision, using the inward FDI data set in Korea from 1999 to 2006.

The theoretical framework finds that the five properties derived from an industry with comparative advantage in a host country have mixed motives for M&A or greenfield. The empirical results show that selected conventional independent variables generally affect the M&A or greenfield entry mode decision with significance individually and that their impacts become more or less prominent when the authors employ interaction terms combining them with comparative advantages in the industries.

This implies that MNEs not only consider their own firm-specific advantages or other country-level factors for foreign market entries as the previous research generally found, but also seriously take into account industry-specific factors, especially industry-wide comparative advantages based on heterogeneous productivities of firms.

This paper reconciles multinationals’ strategic motives under an oligopolistic market with their efficiency gains under a monopolistic competitive market, which are considered as two main factors for cross-border M&A. Furthermore, this paper adds a new firm-level data set into entry mode research.

Rather than organize as traditional firms, many of today’s companies organize as platforms that sit at the nexus of multiple exchange and production relationships. This chapter considers a most basic question of organization in platform contexts: the choice of boundaries. Herein, I investigate how classical economic theories of firm boundaries apply to platform-based organization and empirically study how executives made boundary choices in response to changing market and technical challenges in the early mobile computing industry (the predecessor to today’s smartphones). Rather than a strict or unavoidable tradeoff between “openness-versus-control,” most successful platform owners chose their boundaries in a way to simultaneously open-up to outside developers while maintaining coordination across the entire system.

This paper applies the mixed logit and the latent class models to analyse the heterogeneity in foreign investment location choices in Central and Eastern Europe. The empirical results show that the responsiveness of the probabilities of choices to invest in a particular location to country-level variables differs both across sectors and across firms of different characteristics. The paper highlights the superiority of the latent class model with regards to the model fit and the interpretation of results.

The purpose of this study is to offer explanations of the wide variation in the impact of market size on new market entry decisions – i.e. its positive impact lessens because of unreliable predictability of market size on post-entry profit and entry motivations other than post-entry profit.

On the basis of the two explanations, this paper builds a contingency frame that the impact of market size on new market entry depends on entry-context-specific variables. It validates the contingency frame, empirically analyzing 219 parameter estimates of the impact of market size on market entry obtained from 41 existing empirical studies.

The meta-analysis results reveal that the entry-context-specific variables used in this study – niche market entry, high-tech market entry, entry by industry incumbent firms and the year of market entry – notably moderate the impact of market size on new market entry decisions, as the research frame suggests.

This study examines the various literature and study outcomes in the areas of marketing, economics and strategy to elucidate whether and when market size is a critical driver of new market entry. In most cases, the greater the new market size, the greater is the propensity to enter the market. However, the contingency arguments stated in this paper suggest that firms may and do enter a new market even if the market size is not large at the time of entry.

This paper enhances the understanding of the relative importance of market size in market entry decisions, which depend on various entry contexts. It clarifies the direction and magnitude of the impact of such entry contexts.

The purpose of this paper is to examine the relationships between International Financial Reporting Standards (IFRS), types of foreign direct investment (FDI) – greenfield investments (GFIs) and mergers and acquisitions (M&As) – and economic growth in 49 African countries between 2003 and 2017.

In the study, panel data fixed effects and generalized method of moments estimation techniques are used in order to test the hypotheses.

Using country-level data obtained from the World Development Indicators, The United Nations Conference on Trade and Development and World Governance Indicators websites, the authors find that IFRS and the types of FDI are significantly related to economic growth. Moreover, our results provide evidence that the effect of GFIs and M&As on growth is influenced by IFRS positively.

With a handful of exceptions, most African countries do not have active stock markets. Therefore, the authors were unable to determine the effect of capital markets on growth.

FDI has the potential to contribute to economic growth and quality of life. Our findings suggest that policymakers should create incentives for attracting FDI and effective enforcement of IFRS in order to unleash the benefits of FDI on their economies.

The study provides important insights into the effects of types of FDI on the economic growth of African countries and into the role that IFRS play on this relationship.

The purpose of this paper is to systematically review the platform literature and synthesize the various topics of research into a common framework to reveal the relations between platform-based service innovation, system design and other platform-related factors.

A quantitative descriptive analysis led to an overview of the distribution of research focuses of the 187 sample articles identified by a well-established search strategy. A qualitative in-depth review was then used to clarify the detailed research topics and generate an overall conceptual model to link them, with a focus on platform-based service innovation and system design.

In total, 11 research topics of three research perspectives were identified and linked by a framework that accounts for the relationships between platform-based service innovation and system design and their influences on platform evolution. A small panel of industry experts validated the accuracy and utility of the proposed framework.

This paper provides an integrated framework for separately developed research perspectives and the topics investigated in the platform literature. Through the proposed framework, this paper helps to improve the knowledge on platform study and management, and lays a foundation for exploring the research opportunities in platform-based service innovation and system design.

The purpose of this paper is to examine the determinants of home-region strategy of the multinational subsidiary and the impact of such a strategy on its performance. The author draws upon new internalization theory to develop a theory-driven model and empirically tests the simultaneous relationships between home-region strategy and performance of the subsidiary.

The author tests the model using a simultaneous equation statistical technique on an original, new data set of publicly listed multinational subsidiaries operating in the ASEAN region, with parent firms’ headquarters across the broad triad.

There are three significant findings. The first finding is that subsidiary-level downstream knowledge (marketing advantages), and the geographic location of the subsidiary in the same home region as of the parent firm are key antecedents of a subsidiary’s home-region strategy. The second finding is that a subsidiary’s profitability reduces home-region orientation; however, home-region strategy has an insignificant effect on performance. The third finding is that these subsidiaries generate on average 92 per cent of their total sales in the home region (the Asia Pacific).

The author advances the existing literature on the regional nature of parent-level multinational enterprises by demonstrating that their quasi-autonomous subsidiaries also operate mainly on a home-region basis.

This study aims to test the impact of different institutional quality indicators on two modes of foreign direct investment (FDI)-greenfield investment and cross-border mergers and acquisitions (M&As) for a sample of 110 countries over the period 2003–2017.

The authors develop a model of well-known FDI determinants, such as market size and potential, openness, the value of the national currency and the quality of institutions. The authors examine one-by-one five different institutional factors: law and order, investment profile of the host country, control of corruption (anti-corruption); democratic accountability, and government stability, applying a generalized method of moments (GMM) estimator that assures no endogeneity and reverse causality of the key explanatory variables.

The results point out the fact that fertile institutional conditions for attracting greenfield FDI to developing countries require law and order, good investment conditions and a state of democracy, but not necessarily tight control of corruption and a stable government. On the other hand, the appropriate institutional environment for attracting cross-border M&A sales flows to developing countries includes strong law and order, good investment conditions, strict control of corruption and strong democratic accountability. The results for developed countries show overall smaller importance of institutions as a determinant of both types of FDI.

This is the first study to analyze the differentiated determinants of the two modes of investment. The study holds implications for crafting two different policies for attracting greenfield FDI and M&A sales.

This study aims to examine the impact of investment in innovation, market structure and competitive position on the supermarket value chain in the USA.

This paper used secondary data from Economatica® for the period 2010–2020, encompassing 83 firms within the US supermarket value chain, resulting in 913 observations for each model covariate. The data were analyzed through structural equation modeling, using the partial least squares (PLS) approach, using SMARTPLS® software.

The results indicate that both market structure and investment in innovation have a significant impact on a firm’s competitive position. Specifically, a more concentrated market structure is associated with a weaker competitive position, whereas higher levels of investment in innovation correspond to a stronger competitive position. However, no significant relationship was found between investment in innovation and market structure.

This study is limited to the Economatica® database, from which this paper selected a sample of firms within the US supermarket value chain. This paper recommend future research to compare data from other countries or sectors. For the three-dimensional model, this paper used constructs with indicators of investment, performance and market concentration; however, this paper suggests incorporating additional variables to enhance the model’s robustness.

An analysis of market structure and its impact on competitive positioning offers valuable insights for managers regarding the strategic dimensions of the supermarket industry. Integrating the effects of investment in innovation into business strategies can enhance long-term economic benefits. Adopting a value chain perspective further facilitates the examination of market equilibrium and competitive positioning within the supermarket industry.

The findings of this study can help prevent the adoption of misguided strategies that fail to foster business growth. By highlighting the significant impact of innovation on performance, while considering the competitive dynamics within the supermarket industry, the study provides a deeper understanding of the risks faced by various firms across the value chain and the dual nature of competition within the sector. Moreover, it reinforces the relevance of research on economic sustainability and supports the development of effective growth strategies for firms.

While most studies focus on hypotheses examining the relationships between innovation and competitive positioning or between innovation and market structure, this study introduces a three-dimensional model that uses structural equation modeling to test these interconnections simultaneously. Furthermore, it extends the analysis by incorporating the value chain as a central component, using a diverse sample of firms directly linked to the core operations of the supermarket industry.