Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Overcoming African institutional voids: Market entry with networks
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering. University of Pretoria, Johannesburg, South Africa.ORCID iD: 0000-0001-6117-4408
University of Pretoria, Johannesburg, South Africa.ORCID iD: 0000-0002-1377-7754
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-9628-3599
University of Pretoria, Johannesburg, South Africa.
2019 (English)In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 31, no 3, p. 304-316Article in journal (Refereed) Published
Abstract [en]

Purpose

Literature on modes of entry has focussed on firm-level strategies. The predominant theories used are Institutional Theory and the resource based view. Using an alternate approach, network theory, the paper demonstrates an additional mode of entry: multiple firms entering together as an extension of an existing loose network, known as a bridging network. The extension of an external network across borders is an appropriate mode of entry in emerging markets with no pre-existing networks or existing networks within a market that are weak, immature or missing.

Design/methodology/approach

A conceptual review, which develops four propositions, demonstrating that market entry with bridging networks may be the preferred mode of entry in the presence of institutional voids. Alternative modes may not be viable due to costs and risks associated with overcoming such voids

Findings

Existing theory and case examples supports the contention that market conditions facilitate firms to enter as networks rather than as singular entities. These conditions are found in markets with institutional voids and explain the dominant form of business groups in many countries and the operation of loose strategic alliances in emerging markets. Network entry facilitates market access speed may allow for local ties to remain undeveloped or be a first step in building in-country networks.

Originality/value

This paper heeds to the call for a network ecosystem approach to market entry, arguing that firms may enter as a collective in subsistence and emerging markets which would explain the preponderance of business groups and loose alliances found.

Place, publisher, year, edition, pages
London: Emerald Group Publishing Limited, 2019. Vol. 31, no 3, p. 304-316
Keywords [en]
market entry, network theory, institutional voids
National Category
Business Administration
Research subject
Industrial Marketing
Identifiers
URN: urn:nbn:se:ltu:diva-73455DOI: 10.1108/EBR-01-2018-0029Scopus ID: 2-s2.0-85067071268OAI: oai:DiVA.org:ltu-73455DiVA, id: diva2:1302631
Note

Validerad;2019;Nivå 2;2019-06-27 (johcin)

Available from: 2019-04-05 Created: 2019-04-05 Last updated: 2019-06-27Bibliographically approved

Open Access in DiVA

fulltext(234 kB)32 downloads
File information
File name FULLTEXT01.pdfFile size 234 kBChecksum SHA-512
71dc21a60fd59e8bab975937ada077410d7d65efdabe633e4a4293c4cf3a4f59a38075e2cc19e7c473ba9194444732ed0dc440eaf56dcbc70c28b72f20eab4e9
Type fulltextMimetype application/pdf

Other links

Publisher's full textScopus

Authority records BETA

Chipp, KerryStrandberg, Carola

Search in DiVA

By author/editor
Chipp, KerryWocke, AlbertStrandberg, Carola
By organisation
Business Administration and Industrial Engineering
In the same journal
European Business Review
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 32 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 28 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf