 MNCs entering an emerging industry: The choice of governance mode under high uncertaintyØyvind Bjørgum Cogent Business & Management, 2016, vol. 3, issue 1, 1258135 Abstract: This paper provides insights into the choice of governance mode among relatively similar multinational companies (MNCs) entering into an emerging industry characterised by high uncertainty related to technology, market and policy framework. The study utilises a multiple case study methodology, including interviews with members of five MNCs and the perspective of their investees. The case companies are global leaders in related industries (such as hydropower and wind energy), and they have all chosen to enter the tidal energy industry with a similar technology. Based on their choice of governance mode, the case companies are divided into two groups: “Flexibility” and “Control”. The study elaborates on how the two groups’ governance mode choices are driven by “real options” (RO) and “transaction cost economics” (TCE) logic when assessing the high uncertainty related to the technology, the emerging industry and the relationships with potential firms to be invested in. Date: 2016 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:3:y:2016:i:1:p:1258135 Ordering information: This journal article can be ordered from DOI: 10.1080/23311975.2016.1258135 Access Statistics for this article Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar More articles in Cogent Business & Management from Taylor & Francis Journals |
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