Quotation Surdu, Irina, Ipsmiller, Edith. 2021. Old Risks, New Reference Points? An Organizational Learning Perspective into the Foreign Market Exit and Re-entry Behavior of Firms. In: The Multiple Dimensions of Institutional Complexity in International Business Research, Hrsg. Alain Verbeke, Rob van Tulder, Elizabeth L. Rose, Yingqi Wei, 239-262. Somerville, MA: Emerald Group Publishing Limited.


RIS


BibTeX

Abstract

Going back into previously exited markets is a significant management risk. But, how are re-entry risks managed? By adding strategic reference point (SRP) rationales to the risk management literature, this chapter examines re-entry after initial entry and divestment on a sample of 654 multinational enterprise (MNE) re-entrants. The authors move away from narrow risk management lenses according to which risks happen in isolation and theorize that MNEs simultaneously manage international risk by exploiting the trade-offs among external and internal sources of risk. The authors explain that, for re-entrants, exit may become the SRP for evaluating future strategic choices. The results suggest that re-entrants tend to manage re-entry risk by choosing partner-based modes that enable them to maintain strategic flexibility at re-entry. Surprisingly perhaps, market-specific experience acquired during the initial market foray does not provide strategic flexibility, in that highly experienced firms still experience risk trade-offs.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Chapter in edited volume
Language English
Title Old Risks, New Reference Points? An Organizational Learning Perspective into the Foreign Market Exit and Re-entry Behavior of Firms
Title of whole publication The Multiple Dimensions of Institutional Complexity in International Business Research
Editor Alain Verbeke, Rob van Tulder, Elizabeth L. Rose, Yingqi Wei
Page from 239
Page to 262
Location Somerville, MA
Publisher Emerald Group Publishing Limited
Year 2021
Reviewed? N
URL https://www.emerald.com/insight/publication/doi/10.1108/S1745-8862202115
ISBN 978-1-80043-245-1
Open Access N

Associations

People
Ipsmiller, Edith (Details)
External
Surdu, Irina (Warwick Business School, United Kingdom)
Organization
Institute for International Business (Dikova) (Details)
Google Scholar: Search