TITLE

Born globals, the choice of globalization strategy, and the market's perception of performance

AUTHOR(S)
Gleason, Kimberly C.; Wiggenhorn, Joan
PUB. DATE
September 2007
SOURCE
Journal of World Business;Sep2007, Vol. 42 Issue 3, p322
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: This paper analyzes which characteristics of born global firms determine their choice for international entry mode. Using a logistic regression analysis, we study 124 newly public firms in the United States that undertake 261 international joint ventures or international acquisitions within the first 6 years of their founding. We find that the market responds positively to announcements of international expansions by born global firms, and that larger, more profitable, and more liquid firms have a higher propensity to engage in joint ventures rather than acquisitions. We also find that the market favors firms that announce joint ventures, rewarding them with significantly positive abnormal returns. Furthermore, while we find that cultural similarity affects mode choice, it does not affect the market''s reaction to the announcements.
ACCESSION #
25751094

 

Related Articles

  • Strategic Planning for A Global Business. Chakravarthy, Balaji S.; Perlmutter, Howard V. // Columbia Journal of World Business;Summer85, Vol. 20 Issue 2, p3 

    Strategic planning in a multinational corporation (MINC) has become progressively more complex over the years due lo the globalization of its businesses and the increasing activism of its stakeholders. This paper reviews four generic planning systems that are available to an MNC for meeting ibis...

  • How to Develop Strategies For Globalization. Outlaw, Dave // Moldmaking Technology Magazine;Apr2010, Vol. 13 Issue 4, p56 

    The article presents tips on developing a global strategy for small businesses. It emphasizes that understanding the meaning of globalization is essential in creating a business plan. It presents two concepts that apply when developing a business strategy which include asking for help and...

  • CHESS MOVES. Bailey, Peter // T+D;Dec2010, Vol. 64 Issue 12, p56 

    Companies with global strategies need to gain a global perspective at the highest levels of the organization before moving around the world. Global leadership development is needed for CEOs and teams to create mutual, cross-cultural partnerships. A framework for developing global skill sets...

  • Joint Ventures and Global Strategies. Harrigan, Kathryn Rudie // Columbia Journal of World Business;Summer84, Vol. 19 Issue 2, p7 

    A framework is proposed for predicting whether firms will cooperate in forming joint ventures or other forms of interfirm cooperation. The framework also posits which forces destabilize cooperative ventures, and suggests conditions where strategic needs are best served by joint ventures.
    AS...

  • DEVELOPMENT AND VALIDATION OF A CROSS-CULTURAL APPRAISAL INSTRUMENT FOR ASSESSING CHINESE BUSINESS STRATEGY ORIENTATION: BASED UPON WESTERN THEORETICAL UNDERPINNING. Su Nie, Katherine // Research & Practice in Human Resource Management;Jun2008, Vol. 16 Issue 1, p131 

    The acceleration of China's integration towards the global economy and the ever changing business environment under its continued economic transition has heightened the need for overseas investors and Multi National Companies (MNCs) to understand the Chinese business strategy orientation in the...

  • NATIONAL CONTEXT AND STRATEGY. LAMBERG, JUHA-ANTTI; LAURILA, JUHA; SCHILDT, HENRI // Academy of Management Annual Meeting Proceedings;2007, p1 

    The article discusses the ways in which national environments affect the business planning and strategy of corporations. While it is a widely suggested fact that national context can constrain and shape the evolution of firms and their strategies, this context may be undermined through on-going...

  • RESTRUCTURING ON THE LEVEL OF A MULTINATIONAL COMPANY MANAGEMENT WITHIN THE GLOBAL CONTEXT. NICULESCU, Nicoleta; GOLEA, Valentina; JONESCU, Adriana Mihaela; LEUSTEAN, Beatrice // Annals of DAAAM & Proceedings;Jan2009, p1731 

    Each strategy has key-factors which condition its success, starting the moment it is implemented and ending the moment the respective strategy ceases to correspond to the changes which took place inside the company and in its exterior environment and as a consequence, the strategy must be...

  • DEVELOPING A GLOBAL DIVERSIFICATION MEASURE. Kim, W. Chan // Management Science;Mar89, Vol. 35 Issue 3, p376 

    Previous measures, focusing on either the international market or product dimension of corporate diversification, have been unsatisfactory for analyzing global diversification since both dimensions constitute important elements of a firm's global diversification strategy. This study constructs a...

  • role OFTHE CIO Chief information officer has to be more than a title, as business change demands greater agility from IT and a new view of professionalism from IT management: IT must change in step with the business. Thompson, Colin // Computer Weekly;7/26/2005, p3 

    The article focuses on the role of chief information officer in modern business organisation. The needs of modern business organisations for continuous transformation demand a radical shift in the role and focus of the IT organisation. That shift, essentially from technology service supplier to...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics