Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research |
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| Institution: | 1. RWTH Aachen University, Germany;2. TU Dortmund University, Germany;1. WU Vienna, Welthandelsplatz 1, 1020 Vienna, Austria;2. Department of Management and International Business, College of Business, Florida International University, Miami, FL 33199, United States;3. Department of Strategy, Innnovation, and Entrepreneurship KU Leuven Warmoesberg 26 1000 Brussels, Belgium;1. Department of Business Administration, National Chung Cheng University, No. 168, University Road, Minhsiung Township, Chia-Yi, Taiwan;2. Department of International Business, National Taiwan University, No. 85, Sec. 4, Roosevelt Road, Taipei 106, Taiwan;3. Department of Marketing, Feng Chia University, No. 100, Wenhwa Rd., Seatwen, Taichung 407, Taiwan;1. Business School, Edge Hill University, Ormskirk, Lancashire, UK;2. Department of Strategy and International Business, Birmingham Business School, The University of Birmingham, Edgbaston, Birmingham, UK;3. Department of Marketing, Faculty of Business Studies, University of Vaasa, Wolffintie 34, FIN-65101 Vaasa, Finland;4. Faculty of Economics and Business Administration, University of Tartu, Narva Road 4, 51009 Tartu, Estonia;1. The Open University Business School, Walton Hall, Milton Keynes MK7 6AA, United Kingdom;2. Birmingham Business School, University of Birmingham, Edgbaston, Birmingham B15 2TT, United Kingdom;3. London Business School, Regent’s Park, London NW1 4SA, United Kingdom |
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| Abstract: | This paper reviews the theoretical foundations of the equity based foreign market entry (FME) decisions literature. We analyse 1055 academic FME papers published over four decades (1970–2013). We identify and analyse the theories that informed and guided FME research over time. Our review indicates that scholars have recently started to challenge some of the core assumptions of established theories, draw on and integrate insights from multiple theoretical perspectives which, in turn, generated a multiplicity of approaches for studying FME decisions and their performance outcomes. The paper discusses the explanatory power of the different theories, assesses the relevance of the different theoretical perspectives to our understanding of current FME phenomena and recommends directions for further research. |
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| Keywords: | Multi-theoretical studies Equity based foreign market entry Foreign market entry mode Systematic review Emergent theories |
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