MNCs entering an emerging industry: The choice of governance mode under high uncertainty

This paper provides insights into the choice of governance mode among relatively similar multinational companies (MNCs) entering into an emerging industry characterised by high uncertainty related to technology, market and policy framework. The study utilises a multiple case study methodology, inclu...

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Autor principal:	Øyvind Bjørgum
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2016
Materias:	real options theory tce entry mode governance mode uncertainty tidal energy emerging industry Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/6dda650792954e788a2848c01723d1ce
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spelling	oai:doaj.org-article:6dda650792954e788a2848c01723d1ce2021-12-02T14:07:31ZMNCs entering an emerging industry: The choice of governance mode under high uncertainty2331-197510.1080/23311975.2016.1258135https://doaj.org/article/6dda650792954e788a2848c01723d1ce2016-12-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2016.1258135https://doaj.org/toc/2331-1975This paper provides insights into the choice of governance mode among relatively similar multinational companies (MNCs) entering into an emerging industry characterised by high uncertainty related to technology, market and policy framework. The study utilises a multiple case study methodology, including interviews with members of five MNCs and the perspective of their investees. The case companies are global leaders in related industries (such as hydropower and wind energy), and they have all chosen to enter the tidal energy industry with a similar technology. Based on their choice of governance mode, the case companies are divided into two groups: “Flexibility” and “Control”. The study elaborates on how the two groups’ governance mode choices are driven by “real options” (RO) and “transaction cost economics” (TCE) logic when assessing the high uncertainty related to the technology, the emerging industry and the relationships with potential firms to be invested in.Øyvind BjørgumTaylor & Francis Grouparticlereal options theorytceentry modegovernance modeuncertaintytidal energyemerging industryBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 3, Iss 1 (2016)
institution	DOAJ
collection	DOAJ
language	EN
topic	real options theory tce entry mode governance mode uncertainty tidal energy emerging industry Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	real options theory tce entry mode governance mode uncertainty tidal energy emerging industry Business HF5001-6182 Management. Industrial management HD28-70 Øyvind Bjørgum MNCs entering an emerging industry: The choice of governance mode under high uncertainty
description	This paper provides insights into the choice of governance mode among relatively similar multinational companies (MNCs) entering into an emerging industry characterised by high uncertainty related to technology, market and policy framework. The study utilises a multiple case study methodology, including interviews with members of five MNCs and the perspective of their investees. The case companies are global leaders in related industries (such as hydropower and wind energy), and they have all chosen to enter the tidal energy industry with a similar technology. Based on their choice of governance mode, the case companies are divided into two groups: “Flexibility” and “Control”. The study elaborates on how the two groups’ governance mode choices are driven by “real options” (RO) and “transaction cost economics” (TCE) logic when assessing the high uncertainty related to the technology, the emerging industry and the relationships with potential firms to be invested in.
format	article
author	Øyvind Bjørgum
author_facet	Øyvind Bjørgum
author_sort	Øyvind Bjørgum
title	MNCs entering an emerging industry: The choice of governance mode under high uncertainty
title_short	MNCs entering an emerging industry: The choice of governance mode under high uncertainty
title_full	MNCs entering an emerging industry: The choice of governance mode under high uncertainty
title_fullStr	MNCs entering an emerging industry: The choice of governance mode under high uncertainty
title_full_unstemmed	MNCs entering an emerging industry: The choice of governance mode under high uncertainty
title_sort	mncs entering an emerging industry: the choice of governance mode under high uncertainty
publisher	Taylor & Francis Group
publishDate	2016
url	https://doaj.org/article/6dda650792954e788a2848c01723d1ce
work_keys_str_mv	AT øyvindbjørgum mncsenteringanemergingindustrythechoiceofgovernancemodeunderhighuncertainty
_version_	1718391968568967168

MNCs entering an emerging industry: The choice of governance mode under high uncertainty

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