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Institutional Conditioning of Foreign Expansion: Some Evidence from Finnish‐Based Paper Industry Firms, 1994–2000

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  • Juha Laurila
  • Minna Ropponen

Abstract

ABSTRACT Analyses of the foreign expansion of firms based on economics have recently been supplemented with institutionally‐oriented studies demonstrating that foreign expansion is partly conditioned by the institutional environment in which the expanding firms are embedded. In this paper, we join this emerging stream of research with an empirical study on three Finnish‐based paper industry firms from 1994 to 2000. By showing how changes in the patterns and forms of foreign expansion coincide with changes in the forms of corporate ownership and the cognitive constructions of organizational actors, our study confirms that foreign expansion cannot be adequately understood without reference to the institutional environment in which it originated. In particular, we show that foreign expansion can turn into an institutional requirement that directs the development of firms in part irrespective of the economic aspects involved.

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  • Juha Laurila & Minna Ropponen, 2003. "Institutional Conditioning of Foreign Expansion: Some Evidence from Finnish‐Based Paper Industry Firms, 1994–2000," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 725-751, May.
    • Handle: RePEc:bla:jomstd:v:40:y:2003:i:3:p:725-751
    DOI: 10.1111/1467-6486.00358
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    References listed on IDEAS

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    1. Peter S Davis & Ashay B Desai & John D Francis, 2000. "Mode of International Entry: An Isomorphism Perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(2), pages 239-258, June.
    2. Patricia H. Thornton, 2001. "Personal Versus Market Logics of Control: A Historically Contingent Theory of the Risk of Acquisition," Organization Science, INFORMS, vol. 12(3), pages 294-311, June.
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    Cited by:

    1. Päivikki Kuoppakangas, 2013. "Adopting the Municipal Enterprise Form in Finland: Core Dilemmas in the Transformation of Public Healthcare Organizations," Public Organization Review, Springer, vol. 13(2), pages 155-165, June.
    2. Zhang, Yijing & Toppinen, Anne & Uusivuori, Jussi, 2014. "Internationalization of the forest products industry: A synthesis of literature and implications for future research," Forest Policy and Economics, Elsevier, vol. 38(C), pages 8-16.
    3. Mehmet Demirbag & Ekrem Tatoglu & Keith W. Glaister, 2008. "Factors affecting perceptions of the choice between acquisition and greenfield entry: The case of Western FDI in an emerging market," Management International Review, Springer, vol. 48(1), pages 5-38, February.
    4. Aharoni, Yair & Tihanyi, Laszlo & Connelly, Brian L., 2011. "Managerial decision-making in international business: A forty-five-year retrospective," Journal of World Business, Elsevier, vol. 46(2), pages 135-142, April.

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