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Greenfield Entry Strategy of Multinational Enterprises in the Emerging Markets: Influences of Institutional Distance and International Trade Freedom

  • Ahmad Arslan*
  • , Jorma Larimo
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

This article addresses greenfield entry strategy of multinational enterprises in emerging markets by analyzing the influences of formal and informal institutional distance as well as international trade freedom. The empirical analysis is based on a sample of 263 greenfield market entries in manufacturing sector undertaken by Finnish firms during 1990–2013. The study results revealed that high formal and informal institutional distances led to the preference of greenfield JVs. The study also found that high level of international trade freedom moderates the influences of formal and informal institutional distances on greenfield entry strategy.

Original languageEnglish
Pages (from-to)140-170
Number of pages31
JournalJournal of East-West Business
Volume23
Issue number2
DOIs
StatePublished - 3 Apr 2017
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2017 Taylor & Francis.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure

Keywords

  • Emerging markets
  • formal institutional distance
  • greenfield entry strategy
  • informal institutional distance
  • international trade freedom

ASJC Scopus subject areas

  • Business and International Management
  • Geography, Planning and Development
  • Development

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