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The increasing concern of consumers about the quality and safety of agricultural products all over the world has caused organic products to become one of the most popular options for healthy. The increasing trend and consumption of organic agricultural products has led to the increasing growth of the market of these products in the last two decades. Due to the importance of entering and gaining a share of this growing market, this study investigates the factors affecting the international organic products market entry and determines the appropriate strategy for entering it using structural equation modeling. The data of this study was obtained by collecting 90 questionnaires from producers of organic saffron, pistachio, and raisin products in the year 2021 with available sampling method in Khorasan Razavi province. The obtained results indicate that the variables of risk and motivation to enter the international market directly and the production and marketing ownership indirectly and through influencing the motivation to enter the international market, influence the international market entry strategy. Based on this, the appropriate strategy for entering the international market of organic products, indirect, cooperative and non-attendance strategies such as indirect export, contract production and joint investment was obtained. Therefore, it is suggested that the government should remove or reduce the risks caused by sanctions and obstacles to enter the market for the direct presence of organic product producers in international markets.

The increasing concern of consumers about the quality and safety of agricultural products all over the world has caused organic products to become one of the most popular options for healthy. The increasing trend and consumption of organic agricultural products has led to the increasing growth of the market of these products in the last two decades. Due to the importance of entering and gaining a share of this growing market, this study investigates the factors affecting the international organic products market entry and determines the appropriate strategy for entering it using structural equation modeling. The data of this study was obtained by collecting 90 questionnaires from producers of organic saffron, pistachio, and raisin products in the year 2021 with available sampling method in Khorasan Razavi province. The obtained results indicate that the variables of risk and motivation to enter the international market directly and the production and marketing ownership indirectly and through influencing the motivation to enter the international market, influence the international market entry strategy. Based on this, the appropriate strategy for entering the international market of organic products, indirect, cooperative and non-attendance strategies such as indirect export, contract production and joint investment was obtained. Therefore, it is suggested that the government should remove or reduce the risks caused by sanctions and obstacles to enter the market for the direct presence of organic product producers in international markets. [ABSTRACT FROM AUTHOR]

The relevance of this work is due to the fact that the Korean market is one of the most developed and continues to develop dynamically, therefore it is attractive and promising for foreign companies, including Russian. The relevance of this work is due to the fact that the Korean market is one of the most developed today and continues to develop dynamically. This makes it attractive and promising for Russian companies. However, the Korean market is characterized by high competitiveness, and therefore it is necessary to pay special attention to additional strategic tools, which can be innovations and intellectual property of the company. The purpose of this article is to identify the features necessary to take into account when developing a strategy for entering the South Korean market. The use of innovations and intellectual property in strategizing is an actual trend due to the increase in the value of such objects in both domestic and foreign practice. In this regard, the object of the work identified intellectual property and innovation, considered as a strategic tool for the development of competitiveness. The subject of the study is the peculiarities of using the competitive advantages of intellectual property objects when developing a strategy for entering the Korean market. The research was based on the general theory of strategy and the methodology of strategizing, developed by V. L. Quint, Doctor of Economics, Professor, foreign member of the Russian Academy of Sciences. The research methods were analysis and comparison, classification and generalization. The article considered the main economic indicators characterizing the Korean market. In accordance with the characteristics inherent in this market, characteristics were compiled according to the parameters necessary for use in the development of a strategy. Recommendations were given to facilitate the development of a strategy for entering the Korean market, applicable to companies in various fields. The set of parameters considered is relevant for companies with different goals, amounts of resources and time capabilities. The scientific and practical significance of the results obtained consists in supplementing the theoretical base of research and the high applicability of the results obtained in the practical activities of companies with strategic priorities focused on expanding their foreign presence.

Research Summary: Faced with demand uncertainty and heterogeneity in a nascent industry, entrants often consider how many customer segments to serve by tailoring the usage breadth of their product portfolios. Portfolio usage breadth is the extent to which products in a portfolio collectively span distinct customer segments. We suggest that when entrants have use experience in contexts that are potential users of the new product, their portfolios exhibit low usage breadth, due to demand‐oriented cognition and knowledge. The relationship is stronger for diversifying entrants relative to startups. The empirical context is the U.S. commercial drone industry, wherein entrants need to adapt their product portfolios for five robust and distinct customer segments of photography, short‐distance inspection, long‐distance surveying, agriculture, and aerial supply chain management. Managerial Summary: New industries often serve multiple customer segments, each with different preferences. Entrants can either launch products catering to the specific preferences of customers in a small number of segments or launch products targeting numerous segments. Evidence from the U.S commercial drone industry shows that when entrants have experience in one of the customer segments adopting the new industry's product, they tend to introduce products targeting fewer segments. By recognizing the impact of prior experiences on product portfolio development, entrepreneurial leaders gain insights to assess whether their cognitive alignment with a customer segment has restricted their broader exploration of the demand environment, or whether their superior demand knowledge about a customer segment has created a competitive advantage. [ABSTRACT FROM AUTHOR]

An enormous number of firms fail to deliver economically profitable growth in output even though they may have strong managerial teams and adequate capital. In this paper, we provide new empirical evidence to demonstrate a few fundamental factors that can account for the ability of a firm to achieve economically sustainable scaling. In a bid to achieve that, we surveyed and discussed the prevailing theories that have established various grounds for organizational growth. On the basis of these theories, we hypothesized about the likely microfoundations for organizational growth. We went further to test these hypotheses using empirical data for all publicly-listed Nordic firms over a lengthy span of time, specifically ranging from 1990 to 2020. To implement the test, we established an econometric model, which is predicated on variables that we argued are capable of serving as a proxy for the microfoundations identified. It is our submission that effective and sustainable attainment of growth in output requires a new entrant to develop strategies that are centered on innovative products, as well as target highly concentrated industries, which are characterized by large markets, while financing such economic activities using equity capital as against debt capital. [ABSTRACT FROM AUTHOR]

In recent years, online reviews are increasingly getting more concerns by firms and consumers because they can help mitigate consumers' uncertainty on product quality and experienced attributes and significantly affect firms' operational decisions. We in this study attempt to examine the remanufacturing entry and pricing strategies of manufacturers in the presence of online reviews. We consider an original equipment manufacturer (OEM) selling a new product over two periods in online retailing and determine whether and when to adopt a remanufacturing entry strategy in the market. We uncover online reviews' quality-dimensional effect and experienced dimensional effect that jointly determine the OEM's pricing and remanufacturing strategies. We show that in the presence of online reviews, the OEM will cautiously determine whether to adopt the first-period remanufacturing entry strategy and may also adopt the second-period remanufacturing entry strategy under certain conditions. Interestingly, the OEM will adopt the penetration pricing strategy for the new product and the remanufactured product (if available) when the actual product quality is sufficiently high, but the skimming pricing strategy otherwise, which is different from the uniform pricing strategy in the absence of online reviews. Our results also show that online reviews significantly affect the OEM's profit and consumer surplus. In particular, when the actual product quality is high enough, the OEM and consumers will attain the "win–win" situation. [ABSTRACT FROM AUTHOR]

This study attempts to examine the effects of online consumer reviews on a remanufacturer's entry strategy and carbon reductions. We consider a manufacturer selling a new product over two periods in online retailing, and a remanufacturer determines whether to enter the market in the first or second period to sell a remanufactured product. We find that online consumer reviews have significant impacts. First, the remanufacturer does not always choose the first-period entry strategy. Second, the remanufacturer's earlier entry is not always detrimental to the manufacturer, but can effectively reduce carbon emissions. Third, both firms' pricing decisions, total payoffs and carbon emission reductions are closely related to the initial consumer base in the first period, and both firms do not always benefit from online consumer reviews. Finally, online consumer reviews are beneficial to the environment when there are less primary consumers, and vice versa. [ABSTRACT FROM AUTHOR]

Entrepreneurs are usually optimistic when entering an existing market. We introduce the entrant's optimism into the game models of entry deterrence to study the entry strategy of the potential entrant and the pricing (deterrence) strategy of the incumbent. Further, we examine the impacts of the entrant's optimism on the optimal decisions for both firms in the post‐entry game (Stackelberg price competition). In the price ex‐post setting, our analysis shows that in the post‐entry game, the entrant's optimism increases both firms' prices and could benefit both firms. For the entry strategy, the high optimism of the entrant induces an incorrect entry decision; and our results reveal that the low optimism of the entrant benefits her entry. As for the pricing strategy, the incumbent will blockade the low optimistic entrant by keeping the normal price, impede the moderately optimistic entrant by lowering price, or accommodate the high optimistic entrant by setting the post‐entry price. Additionally, we consider the asymmetric information (about the entrant's type) setting, the price ex‐ante setting, and two optimistic firms setting. We find that the asymmetric information could not make the entrant benefit from her optimism, which is inconsistent with the symmetric information case; the entrant may miss the opportunity to enter the market in the price ex‐ante setting; and the incumbent's optimism makes him worse off. [ABSTRACT FROM AUTHOR]

The aim of this study is to explain the factors influencing the selection of strategies for entering international markets. For this purpose, according to the literature on the types of entry, the strategies were divided into two broad categories of export and non-export strategies. In the next stage, the factors influencing the choice of strategy were identified in two categories including the company's specific factors and the barriers to entry. The statistical population of the study consisted of the directors, sales directors and marketing experts of companies trading in dried fruits in the West Azarbaijan province. According to the statistics obtained from the Chamber of Commerce, 32 companies were active in this province. Due to the limited size of the population, the whole population (i.e. directors, sales managers, and marketing experts) was selected as the sample determined based on the census sampling method. After deletion of questionnaires, were received. The data were collected from 61 questionnaires and analyzed through structural equations (i.e. the partial least squares approach) and the Smart PL S2 software. The results showed that certain factors including the company size, international experience, management characteristics, tariff barriers, geographical distance, and cultural distance affect the selection of export strategies to enter international markets. Also, product type and non-tariff barriers were found to be of no effect in this regard. These two variables, however, proved to have impacts on the choice of non-export strategies.

This paper discusses the firm-level determinants of international hotels’ foreign markets entry choices, contrasting acquisition with management and franchise contracts, based on a resource-dependency perspective and appropriability theory. It points out that brand equity, relatedness of products and market segmentation, partner-specific knowledge of hotels, international experience, and the duration of proprietary knowledge impact hotels’ decisions on how to enter a foreign market. In addition, the paper suggests the existence of entry choices sequence favorable to acquisition probability after the end of management contract when the franchisors’ or management companies’ proprietary knowledge attenuates. Contract activity is likely to be renewed after the acquisition, once the management company has established a new form or a higher level of proprietary knowledge.

A firm planning market entry can attempt to develop a product that is either similar to the incumbent's existing offering (imitation) or entirely novel (innovation). The authors establish that when the incumbent is more aggressive in research and development (R&D), this negatively affects the entrant's marginal return on R&D. Thus, if greater profits produce a strong (weak) desire for the incumbent to increase its R&D level, the entrant will respond by sharply decreasing (increasing) its R&D level. As a result, the incumbent's likelihood of retaining the lead position will exhibit an inverse U-shaped pattern as a function of monopoly and duopoly profits. The authors then examine the impact of uncertainty about the rewards from new products and allow firms to conduct market research to resolve the uncertainty. They characterize the conditions for the entrant's innovation versus imitation decision to reveal information about future rewards to the incumbent. When duopoly profits are uncertain and can be either high (upside potential) or low (downside potential), the entry strategy will be revealing if the upside potential is attractive enough relative to monopoly profits. In contrast, when innovation has uncertain commercial potential (i.e., either valued or not valued by consumers), the entry strategy will be revealing if duopoly profits are unattractive relative to monopoly profits. In these cases, the entrant's innovation–imitation decision is driven by market research; this allows the incumbent to forgo market research and infer the true state of demand from the type of entry strategy it observes. [ABSTRACT FROM AUTHOR]

Background: Entry into a new therapeutic area, that is, one in which a pharmaceutical firm lacks experience, is a considerable challenge for firms that need to overcome scientific and technological barriers. To address this issue, the present study aims to explore the potentiality of alliances in an empirical manner. Methods: From the clinical trials sponsored by 20 major pharmaceutical firms during 2008–2016 listed at ClinicalTrials.gov (n = 14,941 clinical trials), cases of entering a new therapeutic area for a pharmaceutical firm were extracted (n = 73), followed by statistical analyses to evaluate the effect of alliances in this regard. Results: We found that the average number of participating organizations in the cases of entering a new therapeutic area was significantly larger than that in the cases of entering an area in which firms had experience (P <.01), suggesting that alliance has a positive effect on new therapeutic entry for these pharmaceutical firms. Second, we found that the cases of partnering with nonindustrial or nongovernmental organizations (ie, universities, research institutes, hospitals, funding agencies, and others; n = 32 of the 73) were significantly associated with these new entry trials (adjusted odds ratio = 1.1, P <.05). Furthermore, we identified that 10 of the 32 clinical trials were associated with rare diseases, which is an overrepresentation compared to the occurrence in the universe (1015 of the 14,941; P < 10–5). Conclusions: These findings strongly suggest the importance of alliances with diversified partners in new therapeutic entry and also provide a basis for further detailed investigation of key success factors for pharmaceutical firms. [ABSTRACT FROM AUTHOR]

This paper investigates effective strategies that can reduce the risk of failure in international expansion by examining the entry and survival of foreign subsidiaries in the U.S. computer and pharmaceutical industries over the 1974-89 period. Using a hazard rate model, we examine the effects of (1) diversification strategies. (2) entry strategies, and (3) organizational learning and experience on the survival probabilities of' foreign subsidiaries. The results show a higher exit rate for foreign acquisitions and joint ventures than for subsidiaries established through greenfield investments. The results also indicate a higher exit rate for subsidiaries that diversify than for those that stay in the parent firm's main product areas. Finally, the results show that firms benefit from learning and experience in foreign operations, which improves the chances of success for subsequent foreign investments. These findings shed light on the dynamic process of international expansion and the evolution of the multinational corporation. [ABSTRACT FROM AUTHOR]

Purpose: There have been numerous studies analyzing the role of psychic (and cultural) distance in the internationalization process focused on relationships between distance and market selection, entry mode, or subsidiary performance. Still, cumulative findings of this body of research are mixed and inconclusive. Thus, this review aims for a rigorous presentation of past research on psychic distance, with particular focus on the aspects of international business operations affected by psychic distance in the light of empirical studies.Methodology: This review encompasses 55 papers, both empirical and conceptual, published between 1990–2015 in top IB, international marketing, and management journals. In general, the papers under review were published in 27 journals, with the vast majority of them being published in 2005 or later. The vast majority of reviewed papers are of empirical character (47 papers), while eight are conceptual.Findings: Since 2005, the number of articles published in top academic journals that featured the term “psychic distance” in the title has quadrupled. Common research topics include not only the core domain of internationalization process and performance, but also focus on understanding the concept of psychic distance, analyzing its antecedents and coping modes. Other studies have addressed the performance implications of psychic distance in conjunction with variables like strategy adaptation to foreign markets.Research limitations/implications: While the present review is limited in the number of papers taken into account, it does provide an initial overview of the structure of the field. However, the comparability of findings of different studies is limited by factors such as firm samples or presence of multicultural nations. In terms of directions for further research, promising topics include the relationship between perceived and ‘real’ distances or the effectiveness of different coping modes.Originality/value: The present paper identifies key research streams related to psychic distance and its role for international business. Based on an analysis of their content, it outlines several avenues for further investigation.

Foreign subsidiaries are at a disadvantage as compared to domestic enterprises, which is especially the case for emerging market firms in more developed economies. In this paper we apply liability of foreignness (LOF) concept to address the issue of these disadvantages. We consider LOF effects associated with equity vs. non-equity entry modes for Russian firms when penetrating the German market. The paper presents the results of a pilot study of 41 subsidiaries of Russian firms operating in different regions of Germany. Our results show that investors are more concerned about information, customers and partnerships, which can be explained by preeminent reliance on their own resources, while exporters appeared to be driven mostly by image considerations indicating minor interest in other characteristics of the host market. Although both exporters and investors experience significant negative effects from the lack of proper institutional and business knowledge on the host market, these effects vary for equity and non-equity entry modes. We suggest instruments to mitigate these effects, including cooperation with institutional agents, which is especially important for FDI strategy.

Digital platforms have changed the way in which Asia-Pacific firms operate across borders, however, the impact of digital platforms on entry strategy is under-researched in current International Business literature. This study aims to explore how digital platforms impact New Zealand small and medium-sized (SMEs) companies’ entry into the Chinese market. The results of case study interviews conducted with four SMEs suggest that digital platforms ease entry barriers to some extent, particularly in helping overcome resource constraints and facilitating access to networks. However, the participating firms still required local staff as a key part of successful market entry. [ABSTRACT FROM AUTHOR]

Foreign subsidiaries are at a disadvantage as compared to domestic enterprises, which is especially the case for emerging market firms in more developed economies. In this paper we apply liability of foreignness (LOF) concept to address the issue of these disadvantages. We consider LOF effects associated with equity vs. non-equity entry modes for Russian firms when penetrating the German market. The paper presents the results of a pilot study of 41 subsidiaries of Russian firms operating in different regions of Germany. Our results show that investors are more concerned about information, customers and partnerships, which can be explained by preeminent reliance on their own resources, while exporters appeared to be driven mostly by image considerations indicating minor interest in other characteristics of the host market. Although both exporters and investors experience significant negative effects from the lack of proper institutional and business knowledge on the host market, these effects vary for equity and non-equity entry modes. We suggest instruments to mitigate these effects, including cooperation with institutional agents, which is especially important for FDI strategy. [ABSTRACT FROM AUTHOR]

This study aims to resolve the debate regarding whether family owners facilitate or restrain internationalization, by examining the role of family owners as firms cope with uncertainty. According to the transaction cost economics (TCE) perspective, which differentiates between internal (behavioral) uncertainty and external (environmental) uncertainty, firms tend to choose wholly-owned subsidiaries over joint ventures as internal uncertainty and external uncertainty decrease. We hypothesize that, due to family members’ concerns regarding the preservation of socioemotional wealth (SEW), firms with higher family ownership and involvement in the board are even more likely to choose wholly-owned subsidiaries over joint ventures as internal uncertainty and external uncertainty decrease. We use a sample of 1463 observed investments from 681 companies publicly listed on the Taiwan Stock Exchange to test our hypotheses. The empirical results show that family owners’ involvement in the board facilitates internationalization when facing low internal uncertainty; as internal uncertainty decreases, firms with higher family involvement in the board have a higher propensity to choose wholly-owned subsidiaries, the high-commitment FDI entry mode. [ABSTRACT FROM AUTHOR]

This paper discusses the firm-level determinants of international hotels' foreign markets entry choices, contrasting acquisition with management and franchise contracts, based on a resource-dependency perspective and appropriability theory. It points out that brand equity, relatedness of products and market segmentation, partner-specific knowledge of hotels, international experience, and the duration of proprietary knowledge impact hotels' decisions on how to enter a foreign market. In addition, the paper suggests the existence of entry choices sequence favorable to acquisition probability after the end of management contract when the franchisors' or management companies' proprietary knowledge attenuates. Contract activity is likely to be renewed after the acquisition, once the management company has established a new form or a higher level of proprietary knowledge. [ABSTRACT FROM AUTHOR]

ABSTRACT This article examines the implications of the potential entry of a copycat who produces and sells a copycat (i.e., imitation) product that competes with the incumbent product. By analyzing a two-period dynamic noncooperative game between these two firms, we identify conditions under which the copycat can gain successful market entry. More importantly, we find that the potential entry of a copycat creates (implicit) pressure for the incumbent to lower its selling price; hence, it improves consumer welfare. Finally, we identify conditions under which the potential entry of a copycat can increase social welfare (i.e., consumer welfare and the profit of both firms). [ABSTRACT FROM AUTHOR]