Learning from (under-)performance feedback in international market exits and re-entries

How do firms and their managers interpret, and respond to, (under-)performance feedback? Their reactions to under-performance can define organizations as they may determine their chances of survival and ability to adapt to changes in what has become an increasingly disruptive and uncertain international business environment. This is particularly the case for the multinational enterprise (MNE) which is likely to experience different levels of success and failure, in different host markets, at different points in time. Unlike previous studies which have focused only on financial performance goals, this chapter discusses the pursuit of foreign market re-entry after initial market entry and exit as a strategic performance goal. Given the complexity of returning to exited markets, we highlight that (re-entrant) firms are likely to have multiple goals and performance aspirations, and these may, at times, clash – e.g., the clash between firm goals and individual goals and aspirations. Overall, the treatment of factors that impede or differentiate the interpretation of, and response to, (under-)performance feedback is considered increasingly important to explain the heterogeneity observed in MNE behavior.