- Copyright Page
- Preface and Acknowledgments
- List of Figures
- List of Tables
- List of Contributors
- Contributor Bios for Online
- The Theory of International Business Strategy
- International Business History and the strategy of multinational enterprises: How History Matters
- Capability-Based Theories of Multinational Enterprise Growth
- Location and International Strategy Formation: A Research Agenda
- A Review of International Entry Mode Research: 2007–2018
- Strategic Knowledge Creation in Multinational Enterprises
- Internationalization Process Perspective: Revisiting the Link Between Market Knowledge and Market Commitment
- Multi-Theoretical Approaches to Studying International Business Strategy
- International New Ventures: Do They Really Matter?
- It’s Not (Only) the International New Venture But (Also) the Micromultinational, Daftie!: Reconsidering the Unit of Analysis in International Entrepreneurship
- Internationalization of Family Firms: When Is a Managerial Focus on Socio-Emotional Wealth Effective?
- Internationalization of Emerging-Market Multinationals: The Role of the Underdevelopment of the Home Country
- State-Owned Multinational Enterprises: Theory, Performance, and Impact
- Dynamics of Operation Modes: Switches and Additions
- Subsidiaries as Sources for Learning in Multinational Enterprises: A Commentary on the Importance of External Embeddedness
- Political Strategies of subsidiaries of multinational Enterprises
- Looking back to move Forward: An Overview on Foreign Divestment Decisions
- Foreign Market Re-Entry Strategies: The Role of Cognitive Biases in Decision-Making
- Digitalization and its Strategic Implications for the Multinational Enterprise: The Changing Landscape of Competition and How to Cope with It
- Corporate Social Responsibility, Irresponsibility, and the Multinational Enterprise Environment
- Global value Chain Governance: A Multinational Enterprise Capabilities View
- Sustainability Strategies: Research and Practice in International Business
- New International Human Resource Management Approaches and Multinational Enterprise Strategies
Abstract and Keywords
Exit is not an irreversible, “win or lose” event in the lifecycle of a multinational enterprise (MNE). Some firms decide to re-enter exited markets. Yet, our knowledge of MNEs’ re-entry strategies remains limited, and where re-entry is discussed, perspectives based predominantly on the rational exploitation of resources and experiential learning prove insufficient. This chapter proposes a behavioral lens for understanding complex decisions such as re-entry. Decisions such as re-entry depend on the manner in which the past experience (in this case, the exit) is framed and perceived by decision makers. Given the time-out period between exit and re-entry, re-entry choices may be influenced by the subjective and often outdated experiences of managers. International business (IB) strategy theory has largely ignored the influence of managerial own biases and memory in shaping managers’ perceptions of events. The chapter emphasizes the importance of different types of cognitive biases as theoretical concepts that complement rationality-based assumptions about the dynamic IB strategies of MNEs.
Irina Surdu is Associate Professor of International Business Strategy at Warwick Business School, University of Warwick, UK.
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