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Institutional forces in adoption of international joint ventures: Empirical evidence from British retail multinationals

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  • Owens, Martin
  • Palmer, Mark
  • Zueva-Owens, Anna

Abstract

In this study, we used institutional theory as a lens to understand the factors that influence the adoption of international joint ventures. Drawing on case evidence from British retail multinationals, we found MNEs adopting IJVs to manage a range of host market institutional pressures and to build legitimacy in foreign markets. Normative institutional legitimacy with customers, property agents and employees emerged as particularly salient for MNEs in our retail cases. The findings further indicated that IJV-derived legitimacy is central to market entry and development objectives. Finally, contrary to institutional theory's central assumption that MNEs seek to conform to institutional pressures, we find IJVs enabling MNEs to practice non-conforming responses, including negotiating and altering local social norms.

Suggested Citation

  • Owens, Martin & Palmer, Mark & Zueva-Owens, Anna, 2013. "Institutional forces in adoption of international joint ventures: Empirical evidence from British retail multinationals," International Business Review, Elsevier, vol. 22(5), pages 883-893.
  • Handle: RePEc:eee:iburev:v:22:y:2013:i:5:p:883-893
    DOI: 10.1016/j.ibusrev.2013.01.002
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Hongjuan & Young, Michael N. & Tan, Justin & Sun, Weizheng, 2018. "How Chinese companies deal with a legitimacy imbalance when acquiring firms from developed economies," Journal of World Business, Elsevier, vol. 53(5), pages 752-767.
    2. Dau, Luis Alfonso, 2018. "Contextualizing international learning: The moderating effects of mode of entry & subsidiary networks on the relationship between reforms & profitability," Journal of World Business, Elsevier, vol. 53(3), pages 403-414.
    3. Hearn, Bruce, 2015. "Institutional influences on board composition of international joint venture firms listing on emerging stock exchanges: Evidence from Africa," Journal of World Business, Elsevier, vol. 50(1), pages 205-219.
    4. Calegario, Cristina Lelis Leal & Houston, Jack E. & Bruhn, Nádia Campos Pereira, 2015. "Foreign Market Entry Strategies In The United States/European Union Agribusiness Trade Context," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(3), pages 1-15, July.
    5. Frasquet, Marta & Dawson, John & Calderón, Haydeé & Fayos, Teresa, 2018. "Integrating embeddedness with dynamic capabilities in the internationalisation of fashion retailers," International Business Review, Elsevier, vol. 27(4), pages 904-914.
    6. Surdu, Irina & Mellahi, Kamel, 2016. "Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research," International Business Review, Elsevier, vol. 25(5), pages 1169-1184.

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