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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
Institution:1. CERGAM, IAE Aix-en-Provence, Aix-Marseille Université & SKEMA Business School, Chemin de la Quille, Puyricard, 13 540 Aix-en-Provence, France;2. HaiDuong University, Le Thanh Nghi Street, HaiDuong City, Viet Nam;3. EMLYON Business School, Strategy and Organization Department, 23 Avenue Guy de Collongue, 69 134 Ecully Cedex, France;1. Ivey Business School, Western University, 1255 Western Road, London, ON, Canada N6G 0N1;2. Beedie School of Business, Simon Fraser University, 500 Granville Street, Vancouver, BC, Canada V6C 1W6;3. Goodman School of Business, Brock University, 1812 Sir Isaac Brock Way, St. Catharines, ON, Canada L2S 3A1;1. University of Leuven, Belgium;2. EDHEC Business School, France;1. Department of Management, Economics and Quantitative Methods, Bergamo University, Via Dei Caniana, 2, 24127 Bergamo, Italy;2. Department of Business Administration, Finance, Management and Law, University of Milano-Bicocca, Via Bicocca degli Arcimboldi, 8, 20126 Milan, Italy;3. Department of International Business, Ulster University Business School, Ulster University, Magee Campus, Derry Londonderry BT48 7JL, Northern Ireland, United Kingdom;1. Analytic Focus, LLC, San Antonio, USA;2. SolBridge International School of Business, South Korea;3. St. Mary''s University, San Antonio, USA;1. School of Business and Economics, Loughborough University, Loughborough, LE11 3TU, United Kingdom;2. Business School, University of Glasgow, Glasgow G12 8QQ, United Kingdom
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.
Keywords:Entry mode  Event history method  Institutional environment  Transition economies  Survival  Transaction costs
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