Problem-Solving Dissension and International Entry Mode Performance

Article


Ji, Junzhe, Dimitratos, Pavlos and Huang, A. 2016. Problem-Solving Dissension and International Entry Mode Performance. International Marketing Review. 33 (2), pp. 219-245.
AuthorsJi, Junzhe, Dimitratos, Pavlos and Huang, A.
Abstract

Purpose
This paper examines international decision-making, information processing and
related performance implications. We explore the relationship between international
decision-making and problem-solving dissensions related to entry mode decisions. In
addition, we investigate the effects of dissension on entry mode performance, and the
moderating effect of the foreign direct investment (FDI) vs. non-FDI decision as it
relates to dissension-mode performance. Despite their significance from an
information processing perspective, these issues have not been sufficiently explored
in international entry mode research.
Design/methodology/approach
This research presents data collected from 233 privately owned internationalized
Chinese firms. The analysis in this investigation includes hierarchical ordinary least
squares (OLS) regression.

Findings
The findings suggest an inverse U-shaped relationship between dissension and entry
mode performance, as opposed to a linear one, and a moderating effect of FDI vs. non-FDI decisions on this curvilinear dissension–performance association. These
findings support and refine the rationale of the information processing perspective.
Originality/value
These findings add realistic elements to the alleged “rational” international
decision-making doctrine assumed in previous entry mode literature. Our findings
show the importance of the heterogeneity of information processing in entry mode
strategic decision-making processes (SDMPs), and its effects on specific decision
types. We believe that this is the first empirical study to use an information processing
perspective to examine the effects of SDMPs on entry mode performance.

JournalInternational Marketing Review
Journal citation33 (2), pp. 219-245
ISSN0265-1335
Year2016
PublisherEmerald
Accepted author manuscript
Publication dates
Print11 Apr 2016
Publication process dates
Deposited02 Dec 2015
AcceptedNov 2015
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https://repository.uel.ac.uk/item/85173

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