Joaquim Molins Figueras Chair of Strategic Alliances

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Activities

The Joaquim Molins Figueras Chair of Strategic Alliances carries out a series of activities that include research projects, publication development, participation in and organization of conferences, seminars and activities to disseminate information on Strategic Alliances.

Seminar at the Department of Strategy at BI, Norwegian Business School in Oslo, Norway. Thursday April 6th 2017

MANAGERS' EVALUATIONS OF ENTRY INVESTMENT OPPORTUNITIES:
AN EXPERIMENTAL STUDY OF INDIVIDUAL- AND FIRM-LEVEL EFFECTS

Authors:

Africa Ariño

Xavier Sobrepere
Ph.D. candidate
IESE Business School

Jeffrey J. Reuer
University of Colorado

Beverly B. Tyler
North Carolina State University

ABSTRACT

Taking an upper echelons approach, this paper contributes to the literature on entry-mode choice by experimentally assessing how the effects of individual-level experiences on managers’ evaluations of entry investment opportunities are moderated by firm-level experiences. We investigate how managers’ experience with international joint ventures (IJVs) and the psychic distance from their home countries to the host country both affect those evaluations.  We examine how their firms’ experience with IJVs moderates those effects. We find: (1) IJV-experienced managers have a greater preference for IJVs over acquisitions if their firms have no IJV experience; (2) their preference for IJVs over acquisitions is greater the greater the psychic distance between the managers’ home countries and the host country; and (3) a firm’s experience with IJVs attenuates these effects.