Export is an important strategy for firms to grow, yet researchers tend to ignore how firms can exploit and develop their resource-based capabilities to improve export performance. Building on the Organizational Capability (OC) perspective, this study develops a novel approach on ways to improve export performance. Cross-sectional empirical data regarding Swedish firms were collected and analyzed in a number of ways, including application of multi-variate techniques. The study identifies associations between mode of entering a foreign market and the firm’s level of market orientation (MO) capabilities and entrepreneurial orientation (EO) capabilities. Entry modes include wholly-owned subsidiaries and collaborations with other firms. Also, the study shows that the associations are contingent on the institutional distance between the home market and the host market. Problems due to endogeneity are avoided as an association is established between a mode that is aligned with the capabilities and performance. The study found that firms possessing extensive MO and EO capabilities select a wholly-owned subsidiary. The analysis also shows that the institutional distance between Sweden and the export market moderates this association; greater distance favors collaboration with local partners. Moreover, aligning the selection of entry mode with firm-level MO and EO capabilities and institutional distance yields higher post-entry performance.

In this study, we have identified a gap in the existing literature regarding post-entry management of infrastructural and institutional voids, risks, and distances related to establishing foreign operations in uncertain markets. It is in existing literature well-established how firms internationalize their operations, what entry modes they use, and what the drivers for internationalizing one's operations are. There is further a vast amount of literature discussing eventual challenges concerning risk and cultural/psychic distance in relation to internationalization. Our aim with this study has been to combine existing literature with our findings to investigate the means of how Swedish MNEs overcome post-entry infrastructural and institutional voids, risks, and distances when entering uncertain markets. A thematic content analysis was used on fifteen years worth of annual and sustainability reports from three Swedish MNEs respectively along with a comparative analysis. Our analysis indicates that the three Swedish MNEs, in general, experience the same kind of voids, risks, and distances and take similar actions to overcome those challenges.

This dissertation consists of three essays broadly centering on external changes and how organizations respond to these change by altering themselves. My investigations focus on knowledge transfer and innovation related firm responses with an emphasis on firms’ especially, Multinational Enterprises’ (MNEs) market strategies such as ownership, governance and location choices and their non-market strategies such as political networking and stakeholder management. I'm particularly interested in emerging countries and the changing institutional environment in those contexts. To study changes occurring in different speeds and varying firm responses to them, I have hand-collected longitudinal datasets for different industries and employed both qualitative and quantitative methodologies: my datasets covers both moderately-dynamic industries such as multinational construction and retailing and as well as more knowledge-intensive industries such as multinational pharmaceutical, electronics and computer & software industries. Chapter 1: MNE Legitimacy in the Eyes of the People: Insights from Libya about Surviving Association with an Overthrown Regime In the first chapter, I investigate how firms respond to changes that are less-anticipated and takes place in a rapid fashion. Differentiating between the learning that MNEs accumulate at the host-countries and related learning they transfer from similar locations, this paper is built upon and extend theories about how MNEs, cope with institutional voids and transitions in relation to their political connections, corporate social responsibility strategies and interactions with stakeholders in the emerging countries. In order to do so, I conducted an in-depth qualitative study on how different MNEs with different interaction levels to the Gaddafi Regime, society, tribes and the new government in Libya were affected by the Arab Spring. In this paper, using the Arab Spring as a natural experiment and employing Qualitative Comparative Analysis (QCA) and Fuzzy-set methodology, we build new theory on how MNEs can survive and even thrive during times of fast institutional transitions. We introduce “the legitimacy of the government” as an alternative measure of host-country political environment assessment and suggest that MNEs that deepened, broadened and expanded their political connections and strategies to multiple political actors and complemented them with CSR related activities fare better major institutional changes at the host countries. In addition, the results suggest that host-country only specific learning can lock-in MNEs not to see the changing “tea leaves” if they don't complement it with their recent related experiences from their operations other countries. Chapter 2: The Effect of Different Post-Entry Experiences on Changing Market Entry Choices The second chapter focuses on post-entry operations of multinational retail firms that are required to offer a standardized service for an effective knowledge redeploying, but also need to recombine their HQ knowledge with the knowledge that the subsidiaries possess, to ensure adaptation to the local conditions at the same time. The change, now being the multiple uncertainties related with multinational retail chains’ internationalization into different locations, I first analyze how these firms decide on efficient firm boundaries and positioning after their entry into the host countries, and then investigate effects of these post-entry choices on their performance at the host-countries. Constructing a novel data-set of MNEs post-entry commitments in the host countries, my study reviews MNEs’ behavior after they have entered a foreign country and individually tracks their alteration of its ownership and retail format changes over time within that country starting from 1975 and until 2013. This paper provides a more process-based understanding of MNEs’ choices and strategies at the host countries, which extends the scant literature on mode-dynamics. The empirical results show that; MNEs are more likely to change their governance modes after the negative initial performance rather than after the positive initial performance, however, they tend to act completely in the reverse fashion for their decisions regarding changing their initial format choices at post-entry. I also show that the MNEs that change these initial market entry choices regardless of the initial performance have higher probability of survival at the host countries at post-entry, controlling for the dissimilarity between the home and the host countries and after taking into consideration of the possible selection effect of initial market entry decisions. Chapter 3: Differential Effects of Local, Foreign Firms and Supra-National Institutions on the Pace of Institutional Change in Developing Countries In the third chapter, I track changes in local innovation process and IP regime at the same time in the knowledge intensive patent areas such as pharmaceuticals, computer, software and electronics in developing countries. My focus is on Trade Related Intellectual Property Standards (TRIPS) agreement which was signed between developed and developing countries that made it compulsory in emerging countries the protection of product patents along with the process patents. Developing countries were given a 10-year allowance until January 1, 2005, in order to bring their patent system into line with TRIPS obligations as well as other flexibilities. Interestingly, while some of the developing countries such as India used these flexibilities and waited until the end of the 10-year allowance, some countries such as Brazil, Korea and Turkey ratified the TRIPS agreement and put the new regulations into action right away. We explain the variation in developing countries’ rate of TRIPS compliance by new institutionalism and co-evolutionary perspectives, by presenting a framework that shows effects of different actors within innovation systems on different trajectory and rates of institutional change. The results indicate that higher composition of local firms result in slower change of the IP Regime in developing countries, while higher the Advanced Country Multinationals, faster the change. I also find that supranational institutions such as IMF moderate this relationship. / Business Administration/Strategic Management

Title: Selection of Local and Expatriate Managers of MNEs in the Post-Entry Phase Authors: Rebecka Nilsson and Tilda Nithenius Level: Master thesis, 30 HP Keywords: Post-Entry Phase, Managerial Selection Strategy, Foreign Activities, Multinational Enterprises, Local Manager, Expatriate Manager     Background: The internationalization of companies contributes to competitive advantage as well as challenges for the companies. In foreign activities enterprises exist in different phases, which might have an impact on the management requirements. This makes the strategy of managerial selection relevant because it will ease the overall foreign activities.     Research Question: Which are the underlying factors that influence the selection of host-country managers in the post-entry phase?   Purpose:The purpose of this study is to develop the understanding for companies’ managerial selection strategies in the post-entry phase. In addition, the purpose of this study is to develop a model that will work as a theoretical guideline for managerial selections.   Theoretical Framework:Theories of firms’ internationalization process, different phases for companies that operate internationally and challenges for companies operating abroad, are presented. Further theories of managerial selection, international human resource management and management of international companies are discussed.     Methodology:This study is made with a qualitative research method and a multiple case-study design, with an abductive approach. Eight Swedish companies operating in China were interviewed through semi-structured and low standardized interviews. The respondents from the companies are top managers operating in China.   Findings:There are three underlying factors; trust, knowledge gap and legitimacy, that influence the managerial selection of host-country managers in the post entry-phase. Each underlying factor is indirect influenced by different factors. The underlying factors are also all influenced by an overall factor, social capital. This study implies that the selection of managers, except top managers, changes in the post-entry phase compared to the entry-phase as they recruit host-country nationals.

<p>In this paper we aim to identify the most important factors that influence the decisions made by large Western MNCs concerning post entry changes (PEC) in the BRIC markets. Thiss tudy attempts to explain processes and reasons why these changes take place. In addition we make a comparison between strategies followed and the differences between them for each of the BRIC markets.Most academic literature focuses on entry mode theories, however little has been written onPEC. PEC today is a hot topic in the current international business environment. This isevident in the market as many Western MNCs that invested in emerging markets throughJoint Ventures (JV) during the late 1980s and 1990s are now restructuring their strategies in order to further their growth (Luo, 2007).The paper uses a qualitative study to explain and explore PEC strategies in each of the four BRIC markets, using case studies of three Italian large MNCs: Artsana, De Longhi and Luxottica.The study finds that firstly BRIC markets should not be seen as a whole, as academic literature has a tendency to suggest. Secondly, the study finds that country-specific conditions directly affect PEC choices and decisions differently in each market. We have identified a number of variables which influence PEC, of these economic conditions and institutional context pressures were found to be the most important determinants for PEC within the MNCs studied. This study will help management to better choose appropriate PEC and set the most suitable operational mode for each specific environment.</p>

In this paper we aim to identify the most important factors that influence the decisions made by large Western MNCs concerning post entry changes (PEC) in the BRIC markets. Thiss tudy attempts to explain processes and reasons why these changes take place. In addition we make a comparison between strategies followed and the differences between them for each of the BRIC markets.Most academic literature focuses on entry mode theories, however little has been written onPEC. PEC today is a hot topic in the current international business environment. This isevident in the market as many Western MNCs that invested in emerging markets throughJoint Ventures (JV) during the late 1980s and 1990s are now restructuring their strategies in order to further their growth (Luo, 2007).The paper uses a qualitative study to explain and explore PEC strategies in each of the four BRIC markets, using case studies of three Italian large MNCs: Artsana, De Longhi and Luxottica.The study finds that firstly BRIC markets should not be seen as a whole, as academic literature has a tendency to suggest. Secondly, the study finds that country-specific conditions directly affect PEC choices and decisions differently in each market. We have identified a number of variables which influence PEC, of these economic conditions and institutional context pressures were found to be the most important determinants for PEC within the MNCs studied. This study will help management to better choose appropriate PEC and set the most suitable operational mode for each specific environment.

This thesis focuses on examining key competitive strategies for multinational corporations(MNCs) operating in emerging markets, and what factors contribute to the success or failureof these strategies. Also, this research will study how MNCs can adapt competitive strategiesto fit emerging market characteristics and local market conditions. It will also examine thefactors of variation for competitive strategies across different emerging markets.The empirical findings in this study were acquired using a qualitative single case study of anMNC operating in international markets. The findings were gathered through semi-structuredinterviews to then be analysed and discussed with the literature review to highlight differencesand similarities.The conclusion of this thesis displays competitive strategies used by MNCs in emergingmarkets and the factors that impact success or failure. The single case study of NIBEgenerated examples of competitive strategies in emerging markets, more specifically howacquisition and subsidiaries were used to adapt to local market characteristics. Factorsaffecting the success or failure of MNCs are institutions, networks, local regulations andnorms, together with local market conditions.

<p>The present study investigated technical qualities of the elicited imitation (EI) items used by the Assessment of College English – International (ACE-In), a locally developed English language proficiency test used in the undergraduate English Academic Purpose Program at Purdue University. EI is a controversial language assessment tool that has been utilized and examined for decades. The simplicity of the test format and the ease of rating place EI in an advantageous position to be widely implemented in language assessment. On the other hand, EI has received a series of critiques, primarily questioning its validity. To offer insights into the quality of the EI subsection of the ACE-In and to provide guidance for continued test development and revision, the present study examined the measurement qualities of the items by analyzing the pre- and post-test performance of 100 examines on EI. The analyses consist of an item analysis that reports item difficulty, item discrimination, and total score reliability; an examination of pre-post changes in performance that reports a matched pairs t-test and item instructional sensitivity; and an analysis of the correlation patterns between EI scores and TOEFL iBT total and subsection scores.</p><p>The results of the item analysis indicated that the current EI task was slightly easy for the intended population, but test items functioned satisfactorily in terms of separating examinees of higher proficiency from those of lower proficiency. The EI task was also found to have high internal consistency across forms. As for the pre-post changes, a significant pair-wise difference was found between the pre- and post-performance after a semester of instruction. However, the results also reported that over half of the items were relatively insensitive to instruction. The last stage of the analysis indicated that while EI scores had a significant positive correlation with TOEFL iBT total scores and speaking subsection scores, EI scores were negatively correlated with TOEFL iBT reading subsection scores. </p><p>Findings of the present study provided evidence in favor of the use of EI as a measure of L2 proficiency, especially as a viable alternative to free-response items. EI is also argued to provide additional information regarding examinees’ real-time language processing ability that standardized language tests are not intended to measure. Although the EI task used by the ACE-In is generally suitable for the targeted population and testing purposes, it can be further improved if test developers increase the number of difficult items and control the contents and the structures of sentence stimuli. </p><p>Examining the technical qualities of test items is fundamental but insufficient to build a validity argument for the test. The present EI test can benefit from test validation studies that exceed item analysis. Future research that focuses on improving item instructional sensitivity is also recommended.</p>