This work reviews the paper of Anne-Wil Harzing (2002):
Acquisitions versus Greenfield Investments:
International Strategy and Management of Entry
Modes
In: Strategic Management Journal, Vol. 23, No.3,
pp.211-227
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Development
- 2.1 Literature Review and Hypotheses
- 2.2 Data collection
- 2.3 Statistical methods
- 2.4 Results
- 3. Conclusion & Limitations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This article examines the strategic choice between acquisitions and greenfield investments as entry modes for multinational corporations (MNCs) into foreign markets. The author investigates how a firm's international strategy (global vs. multidomestic) influences this choice and the subsequent management of subsidiaries. The study analyzes the relationship between corporate strategy and entry mode selection, focusing on how managerial behaviors differ between global and multidomestic firms.
- The impact of corporate strategy (global vs. multidomestic) on entry mode choice.
- The relationship between entry mode (acquisition vs. greenfield investment) and subsequent management of subsidiaries.
- The role of firm-specific advantages (FSAs) in entry mode selection.
- Analysis of managerial differences between global and multidomestic firms, including control, expatriate assignments, and local responsiveness.
- Examination of potential changes in management style over time if the initially preferred entry mode was not achievable.
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This introductory chapter sets the stage by outlining the central problem of MNCs choosing between acquisitions and greenfield investments when expanding into foreign markets. It introduces the core question of the study: how does a company's international strategy influence its choice of entry mode? The chapter highlights the article's focus on the distinction between global and multidomestic strategies and previews the five hypotheses developed by the author to explore the relationship between corporate strategy and entry mode choice. It provides a brief overview of the study's structure and methodology.
2. Development: This chapter constitutes the core of the study. It delves into a literature review that establishes the context for the author's hypotheses. The chapter clearly distinguishes between global and multidomestic strategies, explaining how they influence a company’s approach to foreign market entry. It details the five hypotheses, which explore the relationship between international strategy and aspects of subsidiary management such as control, expatriate deployment, and local responsiveness. The chapter explains how these hypotheses are derived from the literature review and provide a framework for analyzing the differences in management styles between global and multidomestic firms and their chosen entry modes (acquisition vs. greenfield investment).
Schlüsselwörter (Keywords)
Multinational Corporations (MNCs), Entry Modes, Acquisitions, Greenfield Investments, International Strategy, Global Strategy, Multidomestic Strategy, Firm-Specific Advantages (FSAs), Headquarter-Subsidiary Relationship, Control, Expatriates, Local Responsiveness.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this academic article?
The article examines the strategic choices multinational corporations (MNCs) make when entering foreign markets, specifically focusing on the decision between acquisitions and greenfield investments. It investigates how a firm's international strategy (global vs. multidomestic) influences this choice and the subsequent management of its foreign subsidiaries.
What are the key themes explored in the article?
The key themes revolve around the interplay between corporate strategy (global vs. multidomestic) and entry mode selection (acquisition vs. greenfield investment). The article analyzes how these choices impact subsidiary management, including control mechanisms, expatriate assignments, and the degree of local responsiveness. The role of firm-specific advantages (FSAs) in the decision-making process is also examined.
What are the main objectives of the research?
The research aims to understand the impact of corporate strategy on entry mode choice, analyze the relationship between entry mode and subsequent subsidiary management, and investigate the role of FSAs in this selection. It also seeks to identify managerial differences between global and multidomestic firms and explore how management styles might adapt over time if initial entry mode preferences prove unattainable.
What is the structure of the article?
The article is structured into three main sections: an introduction, a development section, and a conclusion. The introduction sets the stage, outlining the research problem and hypotheses. The development section comprises a literature review, data collection and analysis, and the presentation of results. The conclusion summarizes the findings and discusses limitations.
What are the key hypotheses presented in the article?
The article presents five hypotheses exploring the relationship between international strategy (global vs. multidomestic) and various aspects of subsidiary management. These hypotheses predict how differences in corporate strategy translate into different approaches to managing subsidiaries regarding control, expatriate assignments, and local responsiveness depending on whether the entry mode is an acquisition or a greenfield investment.
What methodologies are used in the study?
While the provided preview doesn't detail the specific statistical methods used, it mentions that data collection and statistical analysis are employed to test the hypotheses. The precise techniques are likely described in the full article's 'Development' section.
What are the key findings (as previewed)?
The preview does not explicitly state the key findings. The full article's 'Results' section would contain the detailed findings derived from the data analysis and how they support or refute the proposed hypotheses.
What are the limitations of the study (as previewed)?
The limitations of the study are not detailed in the preview. The conclusion section of the full article would likely address these limitations and suggest avenues for future research.
What are the keywords associated with this research?
The keywords include: Multinational Corporations (MNCs), Entry Modes, Acquisitions, Greenfield Investments, International Strategy, Global Strategy, Multidomestic Strategy, Firm-Specific Advantages (FSAs), Headquarter-Subsidiary Relationship, Control, Expatriates, and Local Responsiveness.
Where can I find the full text of this article?
The provided text is a preview. The location of the full article is not provided in this preview.
- Quote paper
- Oliver Gätgens (Author), 2009, Discussing 'Acquisitions versus Greenfield foreign direct investments', Munich, GRIN Verlag, https://www.grin.com/document/174927