Market exit and re-entry in a volatile emerging economy: a case study of Yamaha motorcycles in Pakistan

IF 4.6 Q2 MATERIALS SCIENCE, BIOMATERIALS
Huda Khan, Nadia Zahoor, A. Arslan, Zaheer Khan
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引用次数: 1

Abstract

Purpose This study aims to understand the dynamics underpinning the exit and re-entry strategies adopted by multinational enterprises (MNEs) in an emerging market, Pakistan. Design/methodology/approach This study undertook an in-depth historical case study of Yamaha Motorcycles, which had initially entered Pakistan as a joint venture but had then exited and re-entered as a wholly owned subsidiary. Findings This study found that, despite its status as a market leader and one of the older players in the Pakistani market, changing market dynamics in the 2000s – especially the increased competition brought by more affordable (inexpensive) Chinese motorcycles and the weak enforcement of industrial policies – had pushed Yamaha Motorcycles to exit. Another factor that had contributed to its exit were differences in risk perception and strategies with its local joint venture partner (a Pakistani business group). Hence, both firm-level and institutional factors had played significant roles in Yamaha’s market exit. This study further found that re-entering in a wholly owned subsidiary operation mode had been beneficial for the firm, as it gained a significant market share due to its focus on innovation and on capturing a market niche, which had earlier not been its main focus. The findings also suggest that opportunity logics and multiple forms of learning can be important for a firm’s re-entry into a host market – such as experiential (i.e. learning from experience) and vicarious learning (i.e. learning from other organizations, including suppliers and competitors) in an emerging market context, in which institutions evolve amid political and policy uncertainty. Finally, this study found that exit and re-entry timing is an important factor for the development of competitive advantage in a host market. Originality/value This study is among the few to have investigated the exit and re-entry strategies of MNEs in emerging markets. The relatively short time during which Yamaha Motorcycles had been out of the market had benefited it on its re-entry, as the firm had been able to capitalize on its prior learning and ties to suppliers’ networks.
动荡的新兴经济体中的市场退出和重新进入:以巴基斯坦雅马哈摩托车为例
目的本研究旨在了解跨国企业在巴基斯坦新兴市场采取的退出和重新进入战略的动力。设计/方法/方法本研究对雅马哈摩托车进行了深入的历史案例研究,该摩托车最初以合资企业的形式进入巴基斯坦,但后来以全资子公司的形式退出并重新进入。调查结果这项研究发现,尽管雅马哈是巴基斯坦市场的市场领导者和老牌参与者之一,但21世纪初市场动态的变化——尤其是价格更实惠(便宜)的中国摩托车带来的竞争加剧,以及产业政策的执行不力——促使雅马哈摩托车退出。导致其退出的另一个因素是与其当地合资伙伴(一个巴基斯坦企业集团)在风险认知和战略方面的差异。因此,企业层面和制度因素在雅马哈的市场退出中都发挥了重要作用。这项研究进一步发现,重新进入全资子公司运营模式对该公司有利,因为由于其专注于创新和抢占市场份额,该公司获得了巨大的市场份额,而这在早些时候并不是其主要关注点。研究结果还表明,机会逻辑和多种形式的学习对企业重新进入东道国市场可能很重要,例如在新兴市场背景下的经验学习(即从经验中学习)和替代学习(即向包括供应商和竞争对手在内的其他组织学习),在这种背景下,机构在政治和政策的不确定性中发展。最后,本研究发现,退出和重新进入的时机是东道国市场竞争优势发展的重要因素。原创性/价值本研究是少数几个调查新兴市场跨国公司退出和重新进入策略的研究之一。雅马哈摩托车退出市场的时间相对较短,这使其重新进入市场受益,因为该公司能够利用其先前的学习和与供应商网络的联系。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
ACS Applied Bio Materials
ACS Applied Bio Materials Chemistry-Chemistry (all)
CiteScore
9.40
自引率
2.10%
发文量
464
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