Addressing endogeneity in the relationship between early entry and performance: The case of foreign market expansion

IF 7.4 2区管理学 Q1 BUSINESS Long Range Planning Pub Date : 2024-09-14 DOI:10.1016/j.lrp.2024.102478

Thijs Nacken, Bas Karreman, Enrico Pennings

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Abstract

Addressing endogeneity issues has been identified as a key priority for ensuring continued progress in the field of strategic management. We contribute to this research agenda by developing a generalized method of moments (GMM) estimation approach that accounts for endogeneity in dynamic models. To illustrate how endogeneity bias impedes reliable interpretation, we examine the relationship between early mover strategies and performance using data on multinational enterprises entering transition economies. Our empirical results demonstrate that early mover advantages are significantly greater after controlling for endogeneity. Additionally, we find evidence that the level of institutional development weakens the advantages of pursuing an early mover strategy in transition economies. After accounting for endogeneity, the negative moderating effect of institutional development is far more pronounced. The magnitude of these two biases underscore the necessity for scholars to adequately address endogeneity and how GMM estimation can facilitate in better understanding the performance implications of strategic choices.

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解决早期进入与业绩关系中的内生性问题：国外市场扩张案例

解决内生性问题已被确定为确保战略管理领域持续进步的关键优先事项。我们开发了一种广义矩量法（GMM）估计方法，在动态模型中考虑了内生性，从而为这一研究议程做出了贡献。为了说明内生性偏差是如何阻碍可靠解释的，我们利用进入转型经济体的跨国企业数据研究了先行者战略与绩效之间的关系。我们的实证结果表明，在控制了内生性之后，先行者的优势明显增强。此外，我们还发现有证据表明，制度发展水平会削弱转型经济体实施先行者战略的优势。在考虑了内生性因素后，制度发展的负向调节作用要明显得多。这两个偏差的严重程度凸显了学者们充分解决内生性问题的必要性，以及 GMM 估计如何有助于更好地理解战略选择对绩效的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Long Range Planning Multiple-

CiteScore

13.00

自引率

7.10%

发文量

期刊介绍： Long Range Planning (LRP) is an internationally renowned journal specializing in the field of strategic management. Since its establishment in 1968, the journal has consistently published original research, garnering a strong reputation among academics. LRP actively encourages the submission of articles that involve empirical research and theoretical perspectives, including studies that provide critical assessments and analysis of the current state of knowledge in crucial strategic areas. The primary user base of LRP primarily comprises individuals from academic backgrounds, with the journal playing a dual role within this community. Firstly, it serves as a platform for the dissemination of research findings among academic researchers. Secondly, it serves as a channel for the transmission of ideas that can be effectively utilized in educational settings. The articles published in LRP cater to a diverse audience, including practicing managers and students in professional programs. While some articles may focus on practical applications, others may primarily target academic researchers. LRP adopts an inclusive approach to empirical research, accepting studies that draw on various methodologies such as primary survey data, archival data, case studies, and recognized approaches to data collection.