Dunning's eclectic theory and the smaller firm: The impact of ownership and locational advantages on the choice of entry-modes in the computer software industry

Keith D. Brouthers, Lance Eliot Brouthers and Steve Werner

International Business Review, 1996, vol. 5, issue 4, 377-394

Abstract: This paper set out to investigate the entry-mode selection activities of small- and medium-sized service firms. Based on Dunning's eclectic theory (1988, Journal of International Business Studies, Vol. 19, No. 1, pp. 1-31; 1993, Multinational Enterprises and the Global Economy, AddisondashWesley) and previous entry-mode research, the entry-mode selection activities of US computer software firms were examined. The findings tend to indicate that ownership and locational advantages influence the entry-mode choice of small- and medium-sized firms in a manner similar to that of larger firms. Additionally, this study confirms the applicability of the eclectic theory of foreign direct investment to a second sector of the services industry.

Keywords: Entry-mode; Software; Eclectic; Theory; FDI (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (38)

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