The fit of home to foreign market environment: An exploratory study of the relationship of congruence to performance

Matthew B. Myers, Cornelia Droge and Mee Shew Cheung

Journal of World Business, 2007, vol. 42, issue 2, 170-183

Abstract: This research draws on the foreign market entry and organizational strategy literatures to address the relationship between home and foreign market environmental congruence and overseas venture performance. Theoretical arguments from prior studies have been juxtaposed in that transaction cost and diversification perspectives hypothesize different outcomes of firm entry into heterogeneous or homogeneous market environments. Using polynomial regression we test hypotheses regarding the home and overseas environmental congruence-venture performance relationship, and the organizational factors which act as moderators of this relationship. The results show that traditional transaction cost and market replication theories fail to fully explain the value of environmental fit when matching overseas market with domestic market profiles. Furthermore, the findings reveal that the moderating effects of organizational factors on the market congruence-venture performance relationship are also counter-intuitive to traditional perspectives. Managerial implications, study limitations, and directions for future research are offered.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090951607000120
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:worbus:v:42:y:2007:i:2:p:170-183

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic
http://www.elsevier. ... 620401/bibliographic

Access Statistics for this article

Journal of World Business is currently edited by David Collings and Jonathan Doh

More articles in Journal of World Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().