IDEAS home Printed from https://ideas.repec.org/p/zbw/itse15/127122.html
   My bibliography  Save this paper

Internationalization of European mobile telecommunication operators: institutional diversity and performance implications

Author

Listed:
  • Asimakopoulos, Grigorios
  • Hernández, Virginia
  • Whalley, Jason

Abstract

Internationalisation plays a key role in the strategy of many firms, with one of the key benefits being improved performance. Since the early 1990s, internationalisation has played a central role within the mobile telecommunications industry, giving rise to multinational enterprises operating in multiple markets. In this paper we investigate whether the internationalisation that has occurred within the European mobile telecommunications industry has resulted in the improved performance of firms. We draw on data for 97 mobile network operators operating in 35 European countries covering the period 2003 to 2012 (inclusive). We adopt a Data Envelopment Analysis (DEA) approach to explore the relationship between firm performance and the regulatory development of countries. Our findings reveal that regulatory development does impact on firm performance, as does the extent to which markets are concentrated. We also reveal how regulatory diversity impacts on the performance of firms, and discuss the implications that arise..

Suggested Citation

  • Asimakopoulos, Grigorios & Hernández, Virginia & Whalley, Jason, 2015. "Internationalization of European mobile telecommunication operators: institutional diversity and performance implications," 26th European Regional ITS Conference, Madrid 2015 127122, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse15:127122
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Srilata Zaheer & Margaret Spring Schomaker & Lilach Nachum, 2012. "Distance without direction: Restoring credibility to a much-loved construct," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(1), pages 18-27, January.
    2. Chien-Ming Chen & Magali A. Delmas & Marvin B. Lieberman, 2015. "Production frontier methodologies and efficiency as a performance measure in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 19-36, January.
    3. Pogrebnyakov, Nicolai & Maitland, Carleen F., 2011. "Institutional distance and the internationalization process: The case of mobile operators," Journal of International Management, Elsevier, vol. 17(1), pages 68-82, March.
    4. Oded Shenkar, 2001. "Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 519-535, September.
    5. Gelbuda, Modestas & Meyer, Klaus E. & Delios, Andrew, 2008. "International business and institutional development in Central and Eastern Europe," Journal of International Management, Elsevier, vol. 14(1), pages 1-11, March.
    6. Chao, Mike Chen-Ho & Kumar, Vikas, 2010. "The impact of institutional distance on the international diversity-performance relationship," Journal of World Business, Elsevier, vol. 45(1), pages 93-103, January.
    7. Banalieva, Elitsa R. & Robertson, Christopher J., 2010. "Performance, diversity, and multiplicity of foreign cross-listing portfolios," International Business Review, Elsevier, vol. 19(6), pages 531-547, December.
    8. Kwok Leung & Rabi S Bhagat & Nancy R Buchan & Miriam Erez & Cristina B Gibson, 2005. "Culture and international business: recent advances and their implications for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(4), pages 357-378, July.
    9. Jie Wu, 2013. "Diverse Institutional Environments and Product Innovation of Emerging Market Firms," Management International Review, Springer, vol. 53(1), pages 39-59, February.
    10. Jean J Boddewyn, 1988. "Political Aspects of MNE Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 341-363, September.
    11. Steven Globerman & Daniel Shapiro, 2003. "Governance infrastructure and US foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 19-39, January.
    12. Donald J Lecraw, 1984. "Bargaining Power, Ownership, and Profitability of Transnational Corporations in Developing Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(1), pages 27-43, March.
    13. Régis Coeurderoy & Gordon Murray, 2008. "Regulatory environments and the location decision: evidence from the early foreign market entries of new-technology-based firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 670-687, June.
    14. Gongming Qian & Lee Li & Alan M Rugman, 2013. "Liability of country foreignness and liability of regional foreignness: Their effects on geographic diversification and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(6), pages 635-647, August.
    15. Christine M Chan & Shige Makino, 2007. "Legitimacy and multi-level institutional environments: implications for foreign subsidiary ownership structure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 621-638, July.
    16. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    17. Kobrin, Stephen J., 1987. "Testing the bargaining hypothesis in the manufacturing sector in developing countries," International Organization, Cambridge University Press, vol. 41(4), pages 609-638, October.
    18. Lucio Fuentelsaz & Elisabet Garrido & Juan P. Maicas, 2015. "Incumbents, technological change and institutions: How the value of complementary resources varies across markets," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1778-1801, December.
    19. Bradley L Kirkman & Kevin B Lowe & Cristina B Gibson, 2006. "A quarter century of Culture's Consequences: a review of empirical research incorporating Hofstede's cultural values framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(3), pages 285-320, May.
    20. Slangen, Arjen H.L. & van Tulder, Rob J.M., 2009. "Cultural distance, political risk, or governance quality? Towards a more accurate conceptualization and measurement of external uncertainty in foreign entry mode research," International Business Review, Elsevier, vol. 18(3), pages 276-291, June.
    21. Waverman, Leonard & Koutroumpis, Pantelis, 2011. "Benchmarking telecoms regulation - The Telecommunications Regulatory Governance Index (TRGI)," Telecommunications Policy, Elsevier, vol. 35(5), pages 450-468, June.
    22. Alvaro Cuervo-Cazurra & Mary M Maloney & Shalini Manrakhan, 2007. "Causes of the difficulties in internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(5), pages 709-725, September.
    23. Jakopin, Nejc M., 2008. "Internationalisation in the telecommunications services industry: Literature review and research agenda," Telecommunications Policy, Elsevier, vol. 32(8), pages 531-544, September.
    24. Elena Beleska-Spasova & Keith W. Glaister, 2010. "Geographic Orientation and Performance," Management International Review, Springer, vol. 50(5), pages 533-557, October.
    25. Lilach Nachum & Sangyoung Song, 2011. "The MNE as a portfolio: Interdependencies in MNE growth trajectory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(3), pages 381-405, April.
    26. Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 5-18, January.
    27. Gordon Redding, 2005. "The thick description and comparison of societal systems of capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 123-155, March.
    28. Anthony Goerzen & Paul W. Beamish, 2003. "Geographic scope and multinational enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1289-1306, December.
    29. Desislava Dikova & Arjen van Witteloostuijn, 2007. "Foreign direct investment mode choice: entry and establishment modes in transition economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 1013-1033, November.
    30. Luis R Gómez-Mejia & Leslie E Palich, 1997. "Cultural Diversity and the Performance of Multinational Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 309-335, June.
    31. Srilata Zaheer & Elaine Mosakowski, 1997. "The Dynamics Of The Liability Of Foreignness: A Global Study Of Survival In Financial Services," Strategic Management Journal, Wiley Blackwell, vol. 18(6), pages 439-463, June.
    32. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    33. Piero Morosini & Scott Shane & Harbir Singh, 1998. "National Cultural Distance and Cross-Border Acquisition Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 137-158, March.
    34. Rugman,Alan M., 2005. "The Regional Multinationals," Cambridge Books, Cambridge University Press, number 9780521842655, January.
    35. Gregory Jackson & Richard Deeg, 2008. "Comparing capitalisms: understanding institutional diversity and its implications for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 540-561, June.
    36. Stern, J., 2000. "Electricity and telecommunications regulatory institutions in small and developing countries," Utilities Policy, Elsevier, vol. 9(3), pages 131-157, September.
    37. Curwen, Peter & Whalley, Jason, 2006. "Measuring internationalisation in the mobile telecommunications industry," International Business Review, Elsevier, vol. 15(6), pages 660-681, December.
    38. Andrew Delios & Paul W. Beamish, 1999. "Ownership strategy of Japanese firms: transactional, institutional, and experience influences," Strategic Management Journal, Wiley Blackwell, vol. 20(10), pages 915-933, October.
    39. Thomas Hutzschenreuter & Johannes C Voll, 2008. "Performance effects of “added cultural distance” in the path of international expansion: the case of German multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(1), pages 53-70, January.
    40. Peter Curwen & Jason Whalley, 2014. "Mobile Telecommunications Networks," Books, Edward Elgar Publishing, number 15816.
    41. de Jong, Gjalt & van Houten, Jerry, 2014. "The impact of MNE cultural diversity on the internationalization-performance relationship," International Business Review, Elsevier, vol. 23(1), pages 313-326.
    42. Gongming Qian & Lee Li & Ji Li & Zhengming Qian, 2008. "Regional diversification and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 197-214, March.
    43. Taco H Reus & Bruce T Lamont, 2009. "The double-edged sword of cultural distance in international acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1298-1316, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hernández, Virginia & Nieto, María Jesús, 2015. "The effect of the magnitude and direction of institutional distance on the choice of international entry modes," Journal of World Business, Elsevier, vol. 50(1), pages 122-132.
    2. de Jong, Gjalt & van Houten, Jerry, 2014. "The impact of MNE cultural diversity on the internationalization-performance relationship," International Business Review, Elsevier, vol. 23(1), pages 313-326.
    3. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    4. Trąpczyński, Piotr & Halaszovich, Tilo F. & Piaskowska, Dorota, 2020. "The role of perceived institutional distance in foreign ownership level decisions of new MNEs," Journal of Business Research, Elsevier, vol. 108(C), pages 435-449.
    5. Raquel García-García & Esteban García-Canal & Mauro F. Guillén, 2019. "International Dispersion and Profitability: An Institution-Based Approach," Management International Review, Springer, vol. 59(6), pages 855-888, December.
    6. Popli, Manish & Akbar, Mohammad & Kumar, Vikas & Gaur, Ajai, 2016. "Reconceptualizing cultural distance: The role of cultural experience reserve in cross-border acquisitions," Journal of World Business, Elsevier, vol. 51(3), pages 404-412.
    7. Jingoo Kang & Jeoung Yul Lee & Pervez N. Ghauri, 2017. "The Interplay of Mahalanobis Distance and Firm Capabilities on MNC Subsidiary Exits from Host Countries," Management International Review, Springer, vol. 57(3), pages 379-409, June.
    8. Jane W. Lu & Hao Ma & Xuanli Xie, 2022. "Foreignness research in international business: Major streams and future directions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 449-480, April.
    9. Quyen T. K. Nguyen, 2017. "Multinationality and Performance Literature: A Critical Review and Future Research Agenda," Management International Review, Springer, vol. 57(3), pages 311-347, June.
    10. Bruyaka, Olga & Prange, Christiane, 2020. "International cultural ambidexterity: Balancing tensions of foreign market entry into distant and proximate cultures," Journal of Business Research, Elsevier, vol. 118(C), pages 491-506.
    11. Sjoerd Beugelsdijk & Tatiana Kostova & Vincent E. Kunst & Ettore Spadafora & Marc van Essen, 2018. "Cultural Distance and Firm Internationalization," Post-Print hal-02312065, HAL.
    12. Ye, Silin & Zhou, Jing & Jiang, Yunwen & Liu, Xiaming, 2023. "Managers as the bridge: How cultural friction influences the integration of cross-border mergers and acquisitions," International Business Review, Elsevier, vol. 32(4).
    13. Fuentelsaz, Lucio & Garrido, Elisabet & Maicas, Juan P., 2020. "The effect of informal and formal institutions on foreign market entry selection and performance," Journal of International Management, Elsevier, vol. 26(2).
    14. Weber, Clarissa E. & Chahabadi, Dominik & Maurer, Indre, 2020. "Antecedents and performance effect of managerial misperception of institutional differences," Journal of World Business, Elsevier, vol. 55(1).
    15. Goudarz Azar & Rian Drogendijk, 2019. "Ex-post Performance Implications of Divergence of Managers’ Perceptions of ‘Distance’ From ‘Reality’ in International Business," Management International Review, Springer, vol. 59(1), pages 67-92, February.
    16. Ana M. Romero-Martínez & Fernando E. García-Muiña & Agnieszka Chidlow & Jorma Larimo, 2019. "Formal and Informal Institutional Differences Between Home and Host Country and Location Choice: Evidence from the Spanish Hotel Industry," Management International Review, Springer, vol. 59(1), pages 41-65, February.
    17. Hutzschenreuter, Thomas & Kleindienst, Ingo & Lange, Sandra, 2014. "Added Psychic Distance Stimuli and MNE Performance," Journal of International Management, Elsevier, vol. 20(1), pages 38-54.
    18. Oded Shenkar & Stephen B Tallman & Hao Wang & Jie Wu, 2022. "National culture and international business: A path forward," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 516-533, April.
    19. Palitha Konara & Alexander Mohr, 2019. "Why We Should Stop Using the Kogut and Singh Index," Management International Review, Springer, vol. 59(3), pages 335-354, June.
    20. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.

    More about this item

    Keywords

    internationalisation; mobile telecommunications; Europe; DEA;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:itse15:127122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.itseurope.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.