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Title: | Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector. An extended penrosean perspective |
Authors: | Mohr, A Batsakis, G Stone, Z |
Keywords: | Foreign divestment;Penrose effect;Internationalization speed;Regional strategy theory;International experience;Retailers |
Issue Date: | 2016 |
Publisher: | European International Business Academy |
Citation: | Mohr, A., Batsakis, G. & Stone, Z. Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective. J Int Bus Stud 49, 779–808 (2018). https://doi.org/10.1057/s41267-017-0138-0 |
Abstract: | Building on and extending Penrosean logic we argue that rapid international expansion by firms might lead to a breach of Penrosean constraints on efficient expansion and to subsequent divestment of international operations to bring firm scope back into Penrosean constraints. We further predict that intra-regional concentration and international experience moderate the above effect because they influence firms ability to avoid a breach of Penrosean constraints and/or weaken the consequences of such a breach. Using data on the international expansion and divestment of large retail MNEs over the period 2003-2012 we find empirical support for the proposed extended Penrose effect in explaining international divestment as well as for the moderating effects of intra-regional concentration and international experience. Our study contributes to the development of Penrosean logic and to our understanding of the factors that drive firms to divest overseas operations. |
URI: | http://bura.brunel.ac.uk/handle/2438/13558 |
DOI: | https://doi.org/10.1057/s41267-017-0138-0 |
ISSN: | 0047-2506 |
Appears in Collections: | Brunel Business School Research Papers |
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