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Entry modes and national systems of innovation

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  • Álvarez, Isabel
  • Marín, Raquel

Abstract

Multinational enterprises (MNEs) have contributed to the productive and technological upgrading of many host economies, whereas discussion about entry modes and developmental effects is far from being concluded. We explore the relative importance of national systems of innovation in various forms of firm internationalization. We hypothesize that, adopting a dynamic perspective, institutional stability and the consolidation of R&D capacities reinforce entrepreneurship and become key driver mechanisms to improve the attraction of foreign entries. The empirical analysis is built upon a sample of countries with dissimilar levels of development using longitudinal data for the period 1998-2004. The findings confirm that the relative technological advance of host countries differ for cross-border mergers and acquisitions (M&A) compared to other entry modes, taking into account the diversity of the developing world, the potential of emerging economies and the need to investigate new drivers for the attraction of FDI.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Management.

Volume (Year): 16 (2010)
Issue (Month): 4 (December)
Pages: 340-353

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Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:340-353

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Related research

Keywords: Development Entry modes MNE M&A National systems of innovation;

References

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Citations

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Cited by:
  1. Lai, Jung-Ho & Chen, Li-Yu & Chang, Shao-Chi, 2012. "The board mechanism and entry mode choice," Journal of International Management, Elsevier, vol. 18(4), pages 379-392.
  2. Isabel Álvarez & Celia Torrecillas, . "What does it matter about the home countries of emerging multinationals?," The Institute for International Integration Studies Discussion Paper Series iiisdp434, IIIS.
  3. Hill, T.L. & Mudambi, Ram, 2010. "Far from Silicon Valley: How emerging economies are re-shaping our understanding of global entrepreneurship," Journal of International Management, Elsevier, vol. 16(4), pages 321-327, December.
  4. Mudambi, Ram & Swift, Tim, 2011. "Leveraging knowledge and competencies across space: The next frontier in international business," Journal of International Management, Elsevier, vol. 17(3), pages 186-189, September.

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