AI Article Synopsis

  • Recent advancements in digitalization and global market integration are enabling firms to adopt innovative entry strategies that have been largely overlooked in traditional studies.
  • These non-traditional entry modes focus on the depth of relationships needed for leveraging resources rather than just control and resource commitment.
  • The paper identifies four key categories of these modes—capital access, innovation outposts, virtual presence, and managed ecosystems—and calls for a broader exploration of entry strategies to better grasp the intricacies of international business.

Article Abstract

Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional modes are encapsulated by the extent of embeddedness required for exploring new and/or exploiting existing resources. In particular, we draw attention to four such categories of non-traditional entry modes the literature has touched on, i.e., capital access, innovation outposts, virtual presence, and the managed ecosystem. We explore the key attributes, antecedents, and strategic implications of these modes. Our paper highlights the need for enriching current entry mode research by considering a broader range of entry mode activities available to firms as well as employing new theoretical perspectives to understand the complex phenomena of internationalization.

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Source
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC9030681PMC
http://dx.doi.org/10.1057/s41267-022-00521-xDOI Listing

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