Foreign Entry, Cultural Barriers and Learning

/ FOREIGN ENTRY, CULTURAL BARRIERS, AND HARRY G. BARKEMA and JOHN H. J. BELL Deparfment of Economics, Tilburg University, Tilburg, The Netherlands T- JOHANNES M. PENNINGS The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, U.S.A. This composing examines the higher status of recondite entries. Hypotheses argon developed on the mode (start-ups vs. acquisitions) and possession srructure (wholly owned vs. joint ventures) in resemblance to cultural aloofness. The hypotheses are tested within a role model of organizational learning, development data on 225 entries that 13 Dutch firms carried out from 1966 onwards. Results found that the presence of cultural barriers punctuates an organizations learning. Cultural distance requiring the firm is a prominent portion in outside(prenominal) entry whenever this involves an otherwise firm, to engage in figure layer acculturation. We also identib locational paths of learning. The longevity of acquis itions i positively injluenced by front entries of the firm in the same s country. Similarly, the longeviry of remote entries, in which the firm has a majority stake, improves whenever the expanding firm booked in prior entries in the same country and in other countries in the same cultural block.

During the last decades firms perk up progressively committed themselves to global markets. Globalization confers access to external markets, tacky labor, and other advantages. Yet, foreign entry does not accrue without costs. When firms vary beyond their internal b molds, they have to adjust to a foreign national culture. Whenever firms draw other organizations into the walk to the u nknown (Johanson and Vahlne, 1977), for emp! loyment through a joint venture (JV) or an instantaneously acquisition, they have to contend with both a national and a corporate culture. However, over time, firms may learn from former globalisation efforts and reduce the barriers that prevent them from freely tapping cheap labor, crude technology, and foreign product...If you want to get a full essay, order it on our website: OrderEssay.net

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