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Entry modes and national systems of innovation

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  • Álvarez, Isabel
  • Marín, Raquel

Abstract

Multinational enterprises (MNEs) have contributed to the productive and technological upgrading of many host economies, whereas discussion about entry modes and developmental effects is far from being concluded. We explore the relative importance of national systems of innovation in various forms of firm internationalization. We hypothesize that, adopting a dynamic perspective, institutional stability and the consolidation of R&D capacities reinforce entrepreneurship and become key driver mechanisms to improve the attraction of foreign entries. The empirical analysis is built upon a sample of countries with dissimilar levels of development using longitudinal data for the period 1998-2004. The findings confirm that the relative technological advance of host countries differ for cross-border mergers and acquisitions (M&A) compared to other entry modes, taking into account the diversity of the developing world, the potential of emerging economies and the need to investigate new drivers for the attraction of FDI.

Suggested Citation

  • Álvarez, Isabel & Marín, Raquel, 2010. "Entry modes and national systems of innovation," Journal of International Management, Elsevier, vol. 16(4), pages 340-353, December.
    • Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:340-353
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    3. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    4. Liu, Xiaming & Yang, Na & Li, Linjie & Liu, Yuanyuan, 2021. "Co-evolution of emerging economy MNEs and institutions: A literature review," International Business Review, Elsevier, vol. 30(4).
    5. Di Guardo, Maria Chiara & Marrocu, Emanuela & Paci, Raffaele, 2016. "The effect of local corruption on ownership strategy in cross-border mergers and acquisitions," Journal of Business Research, Elsevier, vol. 69(10), pages 4225-4241.
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    7. Rajneesh NARULA & José GUIMÓN, 2010. "The investment development path in a globalised world: implications for Eastern Europe," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 5-19, December.
    8. Chen, Wei & Song, Hongti, 2024. "National innovation system: Measurement of overall effectiveness and analysis of influencing factors," Technology in Society, Elsevier, vol. 77(C).
    9. Mudambi, Ram & Swift, Tim, 2011. "Leveraging knowledge and competencies across space: The next frontier in international business," Journal of International Management, Elsevier, vol. 17(3), pages 186-189, September.
    10. Zhao, Shu Liang & Song, Wei & Zhu, Dong Yun & Peng, Xiao Bao & Cai, Wenjing, 2013. "Evaluating China's regional collaboration innovation capability from the innovation actors perspective—An AHP and cluster analytical approach," Technology in Society, Elsevier, vol. 35(3), pages 182-190.
    11. Egan Patrick J.W., 2013. "R&D in the periphery? Foreign direct investment, innovation, and institutional quality in developing countries," Business and Politics, De Gruyter, vol. 15(1), pages 1-32, April.
    12. Galang, Roberto Martin N., 2014. "Divergent diffusion: Understanding the interaction between institutions, firms, networks and knowledge in the international adoption of technology," Journal of World Business, Elsevier, vol. 49(4), pages 512-521.
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    16. Isabel Alvarez & Raquel Marin & Francisco J. Santos-Arteaga, 2015. "Foreign Direct Investment Entry Modes, Development and Technological Spillovers," Manchester School, University of Manchester, vol. 83(5), pages 568-603, September.
    17. Grzegorz Micek & Robert Guzik & Krzysztof Gwosdz & Bolesław Domański, 2021. "Newcomers from the Periphery: The International Expansion of Polish Automotive Companies," Energies, MDPI, vol. 14(9), pages 1-18, May.
    18. Osabutey, Ellis L.C. & Jackson, Terence, 2019. "The impact on development of technology and knowledge transfer in Chinese MNEs in sub-Saharan Africa: The Ghanaian case," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
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