Leveraging the recent research interest in emerging economies, this Perspective paper argues that an institution-based view of international business (IB) strategy has emerged. It is positioned as one leg that helps sustain the “strategy tripod” (the other two legs consisting of the industry- and resource-based views). We then review four diverse areas of substantive research: (1) antidumping as entry barriers; (2) competing in and out of India; (3) growing the firm in China; and (4) governing the corporation in emerging economies. Overall, we argue that an institution-based view of IB strategy, in combination with industry- and resource-based views, will not only help sustain a strategy tripod, but also shed significant light on the most fundamental questions confronting IB, such as “What drives firm strategy and performance in IB?”

/pdf/an-institution-based-view-of-international-business-strategy-b2jah8hc81.pdf

An institution-based view of international business strategy: a focus on emerging economies

https://www.exeter.ac.uk/media/universityofexeter/internationalexeter/documents/iss/Dunning_IBR_2000.pdf

The eclectic paradigm as an envelope for economic and business theories of MNE activity

Empirical studies of FDI have become much more ambitious in scope over the last 30 years. In the 1960s, the main focus of the Hymer-Kindleberger theory (Hymer, 1976; Kindleberger, 1969) and the product cycle theory (Vernon 1966) was exporting versus FDI. In the 1970s the internalisation approach identified licensing, franchising and subcontracting as other strategic options. The resurgence of mergers and acquisitions in the 1980s — often as a ‘quick fix’ route to globalisation — highlighted the choice between greenfield ventures and acquisitions. At the same time, the growing participation of US firms in IJVs drew attention to the role of cooperative arrangements.

https://link.springer.com/content/pdf/10.1057%2Fpalgrave.jibs.8490006.pdf

Analyzing Foreign Market Entry Strategies: Extending the Internalization Approach

Scholars from diverse disciplines have proposed numerous theories of business imitation. We organize these theories into two broad categories: (1) information-based theories, where firms follow others that are perceived as having superior information, and (2) rivalry-based theories, where firms imitate others to maintain competitive parity or limit rivalry. We describe conditions under which each type of imitation is most likely and offer guidance on identifying imitation in practice. Amplification effects and other performance implications of imitation are also addressed.

https://www.jstor.org/stable/pdfplus/20159207.pdf

Why Do Firms Imitate Each Other

This article examines the effect of relative technological capabilities on Japanese direct investment into the United States by looking simultaneously at industry conditions in the two markets. A negative binomial regression model is specified to estimate the effects of R & D capability and industry structure on a count measure of Japanese entries across 297 industries. The results indicate that Japanese direct investment in the United States is drawn to industries intensive in R & D expenditures summed across both countries; voluntary restraints on Japanese exports encourage direct investment. When the entries are disaggregated by mode (e.g., new plant or acquisition), there is a significant indication that joint ventures are used for the sourcing and sharing of U.S. technological capabilities. Copyright 1991 by MIT Press.

Technological capabilities and Japanese foreign direct investment in the United States

Industrial concentration seems to have stimulated the initial phase of recent direct foreign investment in the United States by European and Canadian firms. Increased industrial concentration seems to cause a clumping of direct foreign investment entries after investment by the leading firm in the industry has occurred. This research defines and examines the functional relationship between entry concentration and industrial concentration in European and Canadian industries which have made investments in the United States since World War II.

https://rd.springer.com/content/pdf/10.1057%2Fpalgrave.jibs.8490700.pdf

Oligopolistic Reactions in European and Canadian Direct Investment in the United States

This article categorizes and summarizes the major writings published during the 1970s concerning foreign direct investment in the United States. It is based on the authors' analysis of more than 100 works published in the English language. In addition to analyzing what has been published, the article also suggests directions for future research.

Edward B. Flowers

Papers

Oligopolistic Reactions in European and Canadian Direct Investment in the United States

Foreign Direct Investment in the United States: The State of Knowledge in Research