Strategic Management Quarterly

Global Entry Strategies: Role of Formal Institutions
Cindy Ho, Peng Chan, Chi Sheh

Abstract
This paper examines show formal institutions affect global entry strategies in developed and emerging countries. Different countries have different institutional environments; thus, adjustments may have to be made on the strategy so that it can meet the specific needs of a nation. Institutions can be divided into formal and informal types. Formal institutions comprise the judicial system, investment laws, business regulations, and property rights while informal institutions include cultures, ethics, and norms that might have an effect on the business. First, formal institutional environments reanalyzed and compared from three perspectives in both developed and emerging countries, namely, business regulations, trade barriers and judicial system. Second, the reasons for firms to execute different global entry strategies in developed and emerging countries are explained. Finally, this paper highlights global entry strategies that are effective in countries with weak formal institutions and those with strong formal institutions.

Full Text: PDF     DOI: 10.15640/smq.v4n3a4