Impact on Stock Performance

The impact of strategic resource seeking and market seeking strategies on foreign entry modes under institutional pressures

Manuel Portugal Ferreira Instituto Politécnico de Leiria Fernando A. Ribeiro Serra UNISUL Business School

2008

Working paper nº 23/2008

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globADVANTAGE Center of Research in International Business & Strategy

INDEA - Campus 5 Rua das Olhalvas Instituto Politécnico de Leiria 2414 - 016 Leiria PORTUGAL Tel. (+351) 244 845 051 Fax. (+351) 244 845 059 E-mail: globadvantage@ipleiria.pt Webpage: www.globadvantage.ipleiria.pt

WORKING PAPER Nº 23/2008 July 2008

Com o apoio da UNISUL Business School

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THE IMPACT OF STRATEGIC RESOURCE SEEKING AND MARKET SEEKING STRATEGIES ON FOREIGN ENTRY MODES UNDER INSTITUTIONAL PRESSURES

Manuel Portugal Ferreira Escola Superior de Tecnologia e Gestão Instituto Politécnico de Leiria Morro do Lena - Alto Vieiro 2411-911 Leiria, PORTUGAL E-mail: portugal@estg.ipleiria.pt Phone: +351-244-843317 Fax: +351-244-820310 & globADVANTAGE – Center of Research on International Business & Strategy

Fernando Ribeiro Serra Unisul Business School Rua Jornalista Alirio Bossle, 410 88030-510 – João Paulo – Florianópolis – SC, BRASIL E-mail: fernandoserra@unisul.br Phone: 55.48.32347213 Fax: 55.48.32610000 & globADVANTAGE – Center of Research on International Business & Strategy

2008

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THE IMPACT OF STRATEGIC RESOURCE SEEKING AND MARKET SEEKING STRATEGIES ON FOREIGN ENTRY MODES UNDER INSTITUTIONAL PRESSURES

ABSTRACT Multinational corporations (MNCs) are subject to the various dimensions of the external institutional environments where they operate. Institutional theory suggests that MNCs need to conform to the prevailing rules, norms and procedures of the locations where they operate in order to survive and grow. This means that MNCs need to develop the best possible configuration of strategy-structure for their worldwide operations. Previous research has noted that in these conditions...