An integrated-dynamic mode of entry model : global MNEs entering into emerging markets

Purpose: The purpose of this paper is to develop a conceptual model for the mode of entry in a particular case of global MNEs entering into emerging markets. Design/methodology/approach: The conceptual model builds on institutional theory and follows an integrated approach of entry mode theories using bargaining theory, the liability of foreignness and local legitimacy. Findings: The conceptual model introduces five propositions. Research limitations/implications: The study has policy implications for emerging market institutions. Also, the model highlights the significance of long-term vision in global MNEs’ sustainability. However, the model excludes the MNEs’ internal institutions, home country institutions, as well as institutional and cognitive distances. Originality/value: The conceptual model addresses the dynamics of MNEs’ entry decisions with long-term strategic vision. It helps to recognize the global MNEs’ internalization of the host country’s formal and informal institutions when the bargaining power is in imbalance.