Why Wait? The Speed of Foreign Market Re-Entry after Initial Entry and Exit

Irina Surdu (), Kamel Mellahi (), Keith Glaister () and Giulio Nardella
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Irina Surdu: Henley Business School, University of Reading
Kamel Mellahi: Warwick Business School
Keith Glaister: Leeds University Business School

John H Dunning Centre for International Business Discussion Papers from Henley Business School, University of Reading

Abstract: Using a unique dataset comprising of over 1,000 foreign market re-entries by multinational enterprises, we examine the antecedents of speed of foreign market re-entry into previously exited markets. Contrary to previous studies, we find that the length of host market experience accumulated between initial entry and exit does not lead to earlier re-entries for the firms in our sample. The depth of experience accumulated through operating via joint ventures and the nature of the experience determined by the exit process have a positive and significant impact for early re-entrants. We highlight that the effect of knowledge accumulated through experience decreases as firms spend a long time out of the host market, with host institutional quality mediating the relationship between prior experiences and re-entry speed.

Keywords: foreign market re-entry speed; exit; timeout; learning; experience; institutions (search for similar items in EconPapers)
JEL-codes: M1 (search for similar items in EconPapers)
Date: 2017-11
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