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A Leap of Faith? Managerial Religiosity And Market Entry Decisions

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Abstract

Religious observance remains widespread and thus potentially influential in managerial decision-making, yet its impact on market entry decisions is largely unexplored. This study investigates the effect of managerial religiosity on the three key entry decisions of where, when, and how to internationalise. Based on the verbal protocols of fourteen Malaysian Muslim executives who are considering international expansion, we find that higher levels of religiosity neither led to preferences for other Muslim-majority markets nor significantly influenced ‘when’ and ‘how’ decisions. Nevertheless, our findings demonstrate that religious factors matter in quite different and unexpected ways. In particular, the presence of co-religious minority groups in an otherwise ‘religiously-distant’ market can influence entry decisions among religiously observant managers. Our study therefore yields a new and important insight into entry decisions, namely the role played by managerial religiosity.

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Notes

  1. Available at: https://sites.google.com/site/ddowresearch/home/scales/religion.

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Acknowledgements

We thank the three anonymous reviewers for their careful reading of the paper and the invaluable insights and suggestions they provided. We also gratefully acknowledge Aidi Zulkarnain Md Nor for his support and assistance in the study. This research was supported by a Short-Term Grant [304/PPAMC/6313114] from Universiti Sains Malaysia.

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  1. Graduate School of Business, Universiti Sains Malaysia, Pulau Pinang, Malaysia

    Christopher Richardson & Shaizatulaqma Kamalul Ariffin

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This research was supported by a Short Term Grant [304/PPAMC/6313114] from Universiti Sains Malaysia.

Appendix

Appendix

Example of instructions (Australia), adapted from Williams and Gregoire (2015)

Imagine that you are considering a proposal to expand your company’s sales into another country. This could be a proposal to export, build a plant, open a distribution centre, or any other commitment to expand your company’s sales into another country.

Please THINK OUT LOUD as you consider whether you and your company should expand to this country and, if so, when and how.

I want you to read the country name out loud and also talk about everything that you are thinking about as you consider each country. If you stop talking, I will ask you to “keep talking”.

Australia

Remember, please think out lour while considering Australia for your firm’s first international expansion

figure a

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Richardson, C., Ariffin, S.K. A Leap of Faith? Managerial Religiosity And Market Entry Decisions. Manag Int Rev 59, 277–305 (2019). https://doi.org/10.1007/s11575-019-00377-8

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