Drawing insights from liability of foreignness, the punctuated equilibrium model
and the resource-based view, this dissertation develops an integrated model to identify
the successful strategies and characteristics of both domestic and foreign firms operating
in emerging markets, affected by regulatory punctuations. Accordingly, three research
questions are addressed: Why are some foreign firms more likely to survive than other
foreign firms? Why are some domestic firms more likely to survive than other domestic
firms? Are there any similarities between successful foreign firms and successful
domestic firms?
Using event-history methodologies and the Mexican banking industry as the unit
of analysis, this dissertation shows the following results: Foreign firms (banks) from
countries with stronger commercial ties to Mexico (the focal emerging market), were
less likely to exit the banking industry. Also, the likelihood of exiting the industry, by a
foreign firm, was negatively related to domestic firm (bank) acquisitions. For the
domestic firms (banks), there was a positive relationship between international
diversification and firm survival and a negative relationship between aggressive (loan) growth and firm survival. Also, marginal support was found about the positive
relationship between “grupo” affiliation and firm survival.
This research contributes to the extant literature by extending current theories
when considering the effect of radical change. For instance, while punctuated
equilibrium provides a good “environmental” explanation about a firm’s need to adapt to
radical change, it does not suggest how firms should adapt to this change. However, by
providing an explanation on how firms suppose to adapt to this radical change, this
dissertation had expanded the theoretical implication of the punctuated equilibrium
model. Similarly, the present dissertation provides a theoretical extension to liability of
foreignness by finding that not all foreign firms face the same liability of foreignness.
Lastly, the resource-based view is also extended by this dissertation research, as it is
found to have implications for emerging markets firms that are different from foreign
developed market firms.
| Identifer | oai:union.ndltd.org:tamu.edu/oai:repository.tamu.edu:1969.1/ETD-TAMU-1828 |
| Date | 02 June 2009 |
| Creators | Perez Batres, Luis Antonio |
| Contributors | Eden, Lorraine A, Hitt, Michael A |
| Source Sets | Texas A and M University |
| Language | en_US |
| Detected Language | English |
| Type | Book, Thesis, Electronic Dissertation, text |
| Format | electronic, application/pdf, born digital |
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