Entry mode choices of rapidly internationalizing terminal operators:
- PDF / 318,675 Bytes
- 30 Pages / 442.205 x 663.307 pts Page_size
- 4 Downloads / 198 Views
Entry mode choices of rapidly internationalizing terminal operators: The determinants of the degree of control on foreign ventures Giovanni Satta and Luca Persico Department of Economics and Business Studies, University of Genoa, Via Vivaldi 5, 16126 Genova, Italy. E-mails: [email protected]; [email protected]
Abstract
The surge of international terminal operators (ITOs) gives momentum to the ongoing internationalization process in ports, and induces academic literature to investigate their overseas growth patterns. Empirical evidence shows that, although most container port operators experience regular internationalization drives, several firms pursue an unconventional and accelerated foreign expansion process. In this study, we label this new species of ITOs as ‘emerging ITOs’. They include players from developing countries and a handful of financial operators. Grounding on the ‘born-global’ perspective and the Linkage-Leverage-Learning model, the article investigates the antecedents of the degree of control in foreign ventures. It emphasizes the uniqueness of the ITOs undertaking accelerated path of expansions, in opposition to traditional firms. The outcomes demonstrate that cultural distance, relational capabilities and market knowledge are valuable predictors of the emerging ITOs’ entry mode choices.
Maritime Economics & Logistics (2015) 17, 97–126. doi:10.1057/mel.2014.32; published online 11 December 2014
Keywords: international terminal operators; internationalization; degree of control; born globals; LLL model
Introduction In the last few decades, the container port sector experienced a profound process of globalization (Peters, 2001; Olivier and Slack, 2006). The liberalization and © 2015 Macmillan Publishers Ltd. 1479-2931 Maritime Economics & Logistics www.palgrave-journals.com/mel/
Vol. 17, 1, 97–126
Satta and Persico
privatization of port operations in many countries (Peters, 2001; Cullinane and Song, 2002) and the progressive international opening of local markets stimulated the dramatic surge of private stevedoring firms. These firms exploited port reform opportunities and reshaped competitive paradigms in the business (De Souza et al, 2003). Ongoing changes triggered a number of container port operators to enter foreign markets and expand overseas (Cullinane and Song, 2002; Olivier, 2005). This process originated an array of international players managing wide portfolios of facilities across various regions, that is, international terminal operators (ITOs). The emergence of ITOs and the keen competition between them give momentum to ongoing port internationalization (Yap et al, 2011), and induce academic literature to investigate ITOs’ internationalization strategies. Several scholars argue that ITOs apply different business models and overseas growth strategies in affecting spatio-temporal dimensions of their internationalization (Notteboom and Rodrigue, 2012). Relatedly, Olivier et al (2007) suggest that latecomer ITOs are forced to ‘leapfrog’ the traditional temporal
Data Loading...
