The Bandwagon Effect of Leaders' Entry Strategies on Followers' Entry Strategies
Year: 2017
Type: article
Abstract: Firms, whichhave to compete with global firms in domestic market, try to internationalizefor gaining competitive advantage. The aim of this study is to recommend a conceptual framework to explain thedynamics of internationalization process of leader and follower firms thatinternationalize from an emerging country. In this study, author tries tofigure out the determinants of entrymode decisions of follower firms. In addition, bandwagon effect of leaders'entry mode strategies on followers' entry mode decisions should be investigatedin this study. Multiple theories are used to explain the internationalizationprocess of developing countries. Prepositions are given to present thebandwagon effect of leaders' entry strategies on followers' entry strategies.According to the conceptual model, leaders' entry strategies create a bandwagoneffect on followers' entry strategies. Especiallyfollower firms follow leader firms that form the reference group and learn fromthem. Other than previous studies, in the study this mechanism is explainedwith bandwagon effect. It is hoped that this study is helpfulto enlighten the problem of determining the dynamics of internationalizationprocess of emerging country firms. Moreover, this study integrates theinternational business and institutional theory literature with bandwagoneffect and reference groups. The conceptual framework that is given in thisstudy is beneficial for follower firms, which have to learn from leaders andprovides academic contribution.
Source: DergiPark (Istanbul University)
Author: Tuğba Kaplan
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2787431809