IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/208849.html
   My bibliography  Save this article

Foreign Market Entry Strategies In The United States/European Union Agribusiness Trade Context

Author

Listed:
  • Calegario, Cristina Lelis Leal
  • Houston, Jack E.
  • Bruhn, Nádia Campos Pereira

Abstract

Our study makes an analysis of American’ multinationals foreign market entry strategies in the European Union agribusiness context. We have used a logistic regression analysis using generalized estimating equation method to make hypothesis about the multinationals’ choices. Our results suggest that American food companies operating in EU appear not to choose their mode of entry based merely on host country factors, but mostly on firm related factors, including firm-specific factors and firm financial performance. Despite the creation of a common institutional framework for M&As in the EU, they are still subject to peculiarities due mostly to organizational characteristics of investing firms.

Suggested Citation

  • Calegario, Cristina Lelis Leal & Houston, Jack E. & Bruhn, Nádia Campos Pereira, 2015. "Foreign Market Entry Strategies In The United States/European Union Agribusiness Trade Context," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(3), pages 1-15, July.
    • Handle: RePEc:ags:ijfaec:208849
    DOI: 10.22004/ag.econ.208849
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/208849/files/vol3.no3.pp47.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.208849?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Papageorgiadis, Nikolaos & Cross, Adam R. & Alexiou, Constantinos, 2013. "The impact of the institution of patent protection and enforcement on entry mode strategy: A panel data investigation of U.S. firms," International Business Review, Elsevier, vol. 22(1), pages 278-292.
    2. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    3. J Myles Shaver, 2013. "Do we really need more entry mode studies?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(1), pages 23-27, January.
    4. J. Myles Shaver, 1998. "Accounting for Endogeneity When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI Survival?," Management Science, INFORMS, vol. 44(4), pages 571-585, April.
    5. Zejan, Mario C, 1990. "New Ventures of Acquisitions. The Choice of Swedish Multinational Enterprises," Journal of Industrial Economics, Wiley Blackwell, vol. 38(3), pages 349-355, March.
    6. Jean-François Hennart & Young-Ryeol Park, 1993. "Greenfield vs. Acquisition: The Strategy of Japanese Investors in the United States," Management Science, INFORMS, vol. 39(9), pages 1054-1070, September.
    7. A. Gracia & L.M. Albisu, 2001. "Food consumption in the European Union: Main determinants and country differences," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 469-488.
    8. David J. Teece, 2003. "Towards an Economic Theory of the Multiproduct Firm," World Scientific Book Chapters, in: Essays In Technology Management And Policy Selected Papers of David J Teece, chapter 15, pages 419-446, World Scientific Publishing Co. Pte. Ltd..
    9. Mutinelli, Marco & Piscitello, Lucia, 1998. "The entry mode choice of MNEs: an evolutionary approach," Research Policy, Elsevier, vol. 27(5), pages 491-506, September.
    10. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    11. Nihat Aktas & Eric de Bodt & Richard Roll, 2007. "Is European M&A Regulation Protectionist?," Economic Journal, Royal Economic Society, vol. 117(522), pages 1096-1121, July.
    12. Lai, Jung-Ho & Chen, Li-Yu & Chang, Shao-Chi, 2012. "The board mechanism and entry mode choice," Journal of International Management, Elsevier, vol. 18(4), pages 379-392.
    13. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    14. Moschieri, Caterina & Campa, José Manuel, 2014. "New trends in mergers and acquisitions: Idiosyncrasies of the European market," Journal of Business Research, Elsevier, vol. 67(7), pages 1478-1485.
    15. Owens, Martin & Palmer, Mark & Zueva-Owens, Anna, 2013. "Institutional forces in adoption of international joint ventures: Empirical evidence from British retail multinationals," International Business Review, Elsevier, vol. 22(5), pages 883-893.
    16. David J. TEECE, 2008. "TRANSACTIONS COST ECONOMICS AND THE MULTINATIONAL ENTERPRISE: An Assessment," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 20, pages 427-451, World Scientific Publishing Co. Pte. Ltd..
    17. Farok J Contractor & Sumit K Kundu, 1998. "Modal Choice in a World of Alliances: Analyzing Organizational Forms in the International Hotel Sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 325-356, June.
    18. John H. Dunning & Matthew McQueen, 1981. "The eclectic theory of international production: A case study of the international hotel industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 2(4), pages 197-210, December.
    19. Frisvold, George & Reeves, Jeanne, 2015. "Genetically Modified Crops: International Trade And Trade Policy Effects," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-13, April.
    20. Athina Vasilaki, 2011. "The Relationship Between Transformational Leadership and Postacquisition Performance," International Studies of Management & Organization, Taylor & Francis Journals, vol. 41(3), pages 42-58, January.
    21. Peter J. Buckley & Mark Casson, 2010. "The Multinational Enterprise Revisited," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-25046-8, December.
    22. Drogendijk, Rian & Andersson, Ulf, 2013. "Relationship development in Greenfield expansions," International Business Review, Elsevier, vol. 22(2), pages 381-391.
    23. Mehmet Demirbag & Martina McGuinness & Hüseyin Altay, 2010. "Perceptions of Institutional Environment and Entry Mode," Management International Review, Springer, vol. 50(2), pages 207-240, April.
    24. George S. Yip, 1982. "Diversification entry: Internal development versus acquisition," Strategic Management Journal, Wiley Blackwell, vol. 3(4), pages 331-345, October.
    25. Morschett, Dirk & Schramm-Klein, Hanna & Swoboda, Bernhard, 2010. "Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?," Journal of International Management, Elsevier, vol. 16(1), pages 60-77, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hendrik Klier & Christian Schwens & Florian B. Zapkau & Desislava Dikova, 2017. "Which Resources Matter How and Where? A Meta-Analysis on Firms’ Foreign Establishment Mode Choice," Journal of Management Studies, Wiley Blackwell, vol. 54(3), pages 304-339, May.
    2. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.
    3. Larimo, Jorma & Arslan, Ahmad, 2013. "Determinants of foreign direct investment ownership mode choice: Evidence from Nordic investments in Central and Eastern Europe," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(2), pages 232-263.
    4. Zdolsek, Daniel & Kolar, Iztok, 2013. "Management disclosure practices for disaggregated (financial) information in Slovenian unlisted companies," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(2), pages 232-263.
    5. Slangen, Arjen & Hennart, Jean-François, 2007. "Greenfield or acquisition entry: A review of the empirical foreign establishment mode literature," Journal of International Management, Elsevier, vol. 13(4), pages 403-429, December.
    6. Seok Jin Ko, 2019. "The Differing Foreign Entry Mode Choices for Sales and Production Subsidiaries of Multinational Corporations in the Manufacturing Industry," Sustainability, MDPI, vol. 11(15), pages 1-18, July.
    7. Chenxi Wan & Carlos M. P. Sousa & Jorge Lengler & Qun Tan, 2023. "Entry Mode Choice: A Meta-Analysis of Antecedents and Outcomes," Management International Review, Springer, vol. 63(2), pages 193-246, April.
    8. Wrona, Thomas & Trąpczyński, Piotr, 2012. "Re-explaining international entry modes – Interaction and moderating effects on entry modes of pharmaceutical companies into transition economies," European Management Journal, Elsevier, vol. 30(4), pages 295-315.
    9. Surdu, Irina & Mellahi, Kamel, 2016. "Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research," International Business Review, Elsevier, vol. 25(5), pages 1169-1184.
    10. Francisco J. Más & Felipe Ruiz Moreno, 2003. "Spanish Company Foreign Market Entry," Working Papers. Serie EC 2003-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    11. Sels, A.T.H., 2006. "Foreign direct investment as an entry mode. An application in emerging economies," Other publications TiSEM 583ca9b5-1691-425d-8f77-0, Tilburg University, School of Economics and Management.
    12. Bell, J.H.J., 1996. "Joint or Single Venturing? : An Electric Approach to Foreign Entry Mode Choice," Other publications TiSEM 06f84735-3cf5-432f-8bc8-c, Tilburg University, School of Economics and Management.
    13. Larimo, Jorma, 2003. "Form of investment by Nordic firms in world markets," Journal of Business Research, Elsevier, vol. 56(10), pages 791-803, October.
    14. Arora, Ashish, 1999. "Exploring the internalization rationale for international investment: wholly owned subsidiary versus technology licensing in the worldwide chemical industry," DEE - Working Papers. Business Economics. WB 6430, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    15. Mutinelli, Marco & Piscitello, Lucia, 1998. "The entry mode choice of MNEs: an evolutionary approach," Research Policy, Elsevier, vol. 27(5), pages 491-506, September.
    16. Demirbag, Mehmet & Tatoglu, Ekrem & Glaister, Keith W., 2009. "Equity-based entry modes of emerging country multinationals: Lessons from Turkey," Journal of World Business, Elsevier, vol. 44(4), pages 445-462, October.
    17. Arjen H. L. Slangen & Jean‐François Hennart, 2008. "Do Foreign Greenfields Outperform Foreign Acquisitions or Vice Versa? An Institutional Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1301-1328, November.
    18. Amankwah-Amoah, Joseph & Adomako, Samuel & Danquah, Joseph Kwadwo & Opoku, Robert A. & Zahoor, Nadia, 2022. "Foreign market knowledge, entry mode choice and SME international performance in an emerging market," Journal of International Management, Elsevier, vol. 28(4).
    19. Ana M. Romero-Martínez & Fernando E. García-Muiña & Agnieszka Chidlow & Jorma Larimo, 2019. "Formal and Informal Institutional Differences Between Home and Host Country and Location Choice: Evidence from the Spanish Hotel Industry," Management International Review, Springer, vol. 59(1), pages 41-65, February.
    20. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:208849. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iiaaktr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.