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An eclectic theory of the choice of international entry mode

Article Abstract:

A new framework is presented which examines how international business enterprises decide to enter foreign markets, because it is believed that the mode of entry significantly affects how successful the firms will be. Previous research has treated entry mode decisions in isolation and has not pinpointed underlying constructs. The new framework, in contrast, provides for a unified approach which identifies three underlying constructs that affect entry mode decisions: resource commitments, control, and dissemination risk. The new framework also stipulates that entry mode decisions made by international business enterprises are affected by the strategic connections the enterprises believes will develop with operations in foreign locales. The decisions are not made in isolation.

Author: Hill, Charles W.L., Kim, W. Chan, Hwang, Peter
Publisher: John Wiley & Sons, Inc.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1990

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Jan 16, 2010 @ 2:02 am
A transaction cost model is constructed which explains the transition between two distinct governance modes for serving a foreign market. The two modes are licensing arrangement and wholly owned subsidiary. A single-period model of the factors that influence a firm's choice of governance mode is outlined. The model is then extended to include a temporal perspective and a dynamic perspective. The contingencies that shape the decision-making process for the choice of governance mode are identified by the completed model.

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Searching for a dynamic theory of the multinational enterprise: a transaction cost model

Article Abstract:

A transaction cost model is constructed which explains the transition between two distinct governance modes for serving a foreign market. The two modes are licensing arrangement and wholly owned subsidiary. A single-period model of the factors that influence a firm's choice of governance mode is outlined. The model is then extended to include a temporal perspective and a dynamic perspective. The contingencies that shape the decision-making process for the choice of governance mode are identified by the completed model.

Author: Hill, Charles W.L., Kim, W. Chan
Publisher: John Wiley & Sons, Inc.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1988

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The effects of competition and corporate political responsiveness on multinational bargaining power

Article Abstract:

The effects of competition and corporate political responsiveness on multinational bargaining power are empirically examined. The bargaining power of multinationals in relation to the host government becomes weaker as competition becomes more intense. Corporate political responsiveness plays an increasingly important role in protecting the bargaining power of the multinational as competition increases.

Author: Kim, W. Chan
Publisher: John Wiley & Sons, Inc.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1988

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Subjects list: Research, International business enterprises, Multinational corporations, Strategic planning (Business)
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