The influence of dissemination risks, strategic control and global management skills on firms' modal decision in host countries

Benjamin Tan, Krishna Erramilli and Tan Wee Liang

International Business Review, 2001, vol. 10, issue 3, 323-340

Abstract: This paper examines how firms' modal choice is influenced by their exposure to dissemination risks, need for strategic control and possession of global management skills. A probabilistic model is specified. The following hypotheses are incorporated in the model: the probability of choosing a more advanced entry, ceteris paribus, is a function of (1) the risk-adjusted expected net benefits of a firm's possession of certain types of intangible, transportable assets; (2) parent company attributes that necessitate control over its strategic resources overseas; and (3) possession of certain global resources that are specific to the firm such that their effective internalization calls for higher entry mode. The models are estimated using polychotomous regression analysis. Results generally confirm that size and possession of some knowledge-based, firm-specific strategic assets, are significantly related to advanced entry modes. They also confirm that firms opt for higher entry mode to gain control of competitive pricing in the foreign markets.

Keywords: Entry; mode; Ordinal; progression; Modal; choice; decision; Polychotomous; regression (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969593101000191
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:10:y:2001:i:3:p:323-340

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic
http://www.elsevier. ... me/133/bibliographic

Access Statistics for this article

International Business Review is currently edited by P. Ghauri

More articles in International Business Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().