While foreign market entry and expansion has attracted much international
business research, few have studied the contraction of foreign market operations
and exit from foreign markets when MNCs face market turbulence and decline. This
article uses a process perspective to examine the responses of three Swedish
MNCs to the dramatic changes in the Iranian market during the turbulent period
1975 - 1992. It bases a view of foreign market contraction and exit on the
theory of the internationalization process of the firm, and asks whether this
can help us understand the firm's behavior in the face of a turbulent foreign
market environment.
Get full access to this article
View all access options for this article.
References
1.
BoddewynJean. “Political Aspects of
MNE Theory.” Journal of International Business
Studies19, no. 3 (1988):
341–62.
BrocknerJoel, and RubinJeffrey Z.Entrapment in Escalating Conflicts. A Social Psychological
Analysis.New York:
Springer-Verlag,
1985.
4.
CavusgilS. Tamer. “On the
Internationalization Process of Firms.” European
Research8 (November 1980):
273–81.
5.
CossetJean-Claude, and
RoyJ. “The Determinants of
Country Risk Ratings.” Journal of International
Business Studies22, no. 1 (1991):
135–42.
6.
HallidayFred. Iran, Dictatorship and
Development.New York: Penguin
Books, 1979.
7.
HeiderFritz. The Psychology of
Interpersonal Relations.New York: Wiley,
1958.
8.
HiroDilip. Iran under the
Ayatollahs.London:
Routledge,
1985.
9.
JacqzJack. Iran: Past, Present and
Future.New York: Aspen Institute for
Humanistic Studies, 1975.
10.
JanssonHans, SagibD., and SharmaDeo D.State and Transnational Corporations: Network Approach to Industrial
Policy in India.Aldershot: Edward
Alger, 1995.
11.
JohansonJan, and MattssonL-G. “Internationalization
in Industrial Systems—A Network Approach.” In
Strategies in Global Competition, edited by
HoodNeil and VahlneJan-Erik,
286–314.
Beckenham: Croom
Helm, 1988.
12.
JohansonJan, and VahlneJan-Erik. “The
Internationalization Process of the Firm. A Model of Increasing Market
Commitment and Knowledge Acquisition.” Journal of
International Business Studies8 (Spring/Summer 1977):
23–32.
13.
JohansonJan, and VahlneJan-Erik. “The Mechanism of
Internationalization.” International Marketing
Review7, no. 4 (1990):
11–24.
14.
KlevermanAnders. Business Strategy and
Iranian Revolution. Working Paper, Business Administration, Uppsala
University, 1983.
15.
KobrinJ. Stephen. “When Does
Political Instability Result in Increased Investment Risk?”
Columbia Journal of World Business (Fall
1978): 113–22.
16.
KobrinJ. Stephen. Managing Political
Risk Assessment: Strategic Response to Environmental Changes.Berkeley: University of
California Press, 1982.
17.
KobrinJ. Stephen. “Foreign
Enterprise and Forced Disinvestment in LDCs.”
International Organizations, 34, (Winter
1980): 65–88.
LylesMarjorie A., and
SchwenkCharles R. “Top Management,
Strategy, and Organizational Knowledge Structures.”
Journal of Management Studies29, no. 2 (1992):
155–74.
20.
MakhijaV. Mona. “Government
Intervention in the Venezuelan Petroleum Industry: An Empirical
Investigation of Political Risk.” Journal of
International Business Studies24, no. 3 (1933):
531–55.
21.
PorterMichael. Competitive Strategy:
Techniques for Analyzing Industries and Competitors.New York: Free
Press, 1980.
ReidStan D., and
RossonPhilip J.Foreign Market Entry and Expansion.New York: Praeger
Publishers, 1987.
24.
ReidStan D. “Firm
Internationalization, Transaction Costs and Strategic
Choice.” International Marketing Review1, no. 2 (1983):
44–56.
25.
RingPeter S., LenwayS.A., and GovekarM. “Management of the
Political Imperative in International Business.”
Strategic Management Journal11 (1990):
141–51.
26.
SimonJeffrey D. 1982, “Political
Risk Assessment: Past Trends and Future Prospects.”
Columbia Journal of World Business (Fall
1982): 62–71.
27.
StawBarry M. 1981, “The
Escalation of Commitment to a Course of Action.”
Academy of Management Review6, no. 4 (1981):
577–87.
