Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 23 September 2021

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 Given the time-out period between exit and re-entry, re-entry choices may be influenced by the subjective and often outdated experiences of managers.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.

Keywords: foreign market re-entry, dynamic strategies, behavioral theory, managerial perceptions, availability heuristics, frames of reference, cognitive biases, alternative MNE theory

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.