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Transactional and institutional alignment of entry modes in transition economies. A survival analysis of joint ventures and wholly owned subsidiaries in Vietnam

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  • Meschi, Pierre-Xavier
  • Phan, Thanh Tú
  • Wassmer, Ulrich

Abstract

How do partially aligned entry modes predicted through theoretically pluralistic frameworks perform in terms of longevity? We build on transaction costs and neo-institutional economics and use event history method and Vietnamese data on 3835 joint ventures and wholly owned subsidiaries established by foreign firms from 1987 to 2008 to answer this question. We find that survival rates for entry modes that are partially aligned to transactional and institutional factors differ for JV- and WOS-based entries. We provide new evidence for the predictive power of the transactional and institutional approach for entry mode choice, performance, and survival in transition economies.

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  • Meschi, Pierre-Xavier & Phan, Thanh Tú & Wassmer, Ulrich, 2016. "Transactional and institutional alignment of entry modes in transition economies. A survival analysis of joint ventures and wholly owned subsidiaries in Vietnam," International Business Review, Elsevier, vol. 25(4), pages 946-959.
    • Handle: RePEc:eee:iburev:v:25:y:2016:i:4:p:946-959
    DOI: 10.1016/j.ibusrev.2015.12.005
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    5. Flavio Jorge Freire D Andrade Battistuzzo & Mario Henrique Ogasavara, 2023. "Survival of Japanese subsidiaries: impacts of sequential investment, institutional distances, and location factors," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 903-934, July.
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    8. Billur Akdeniz, M. & Berk Talay, M., 2022. "Happily (N)ever after: An empirical examination of the termination of IJVs across emerging versus developed markets," Journal of Business Research, Elsevier, vol. 148(C), pages 390-404.
    9. Ho, Manh-Toan, 2020. "The rise of research on development economics in Vietnam: Analyses and implications for the public and policymakers from SSHPA 2008-2020 dataset," Thesis Commons msy6e, Center for Open Science.
    10. , Aisdl, 2020. "The rise of research on development economics in Vietnam: Analyses and implications for the public and policymakers from SSHPA 2008-2020 dataset," OSF Preprints 9nbyr, Center for Open Science.
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