An analytic hierarchy process based simulation model for entry mode decision regarding foreign direct investment

Reuven R. Levary and Ke Wan

Omega, 1999, vol. 27, issue 6, 661-677

Abstract: A methodology is developed for ranking entry mode alternatives encountered by individual firms considering foreign direct investment (FDI). The methodology deals with the risks and uncertainties related to FDI. The analytic hierarchy process (AHP) is used to solve the multiple criteria decision-making problem using input from a firm's management. A simulation approach is incorporated into the AHP to handle the uncertainty considerations encountered in an FDI environment. The uncertainties include: (1) uncertainty regarding the future characteristics of the FDI decision making environment, (2) uncertainty associated with the decision maker's judgment regarding pairwise comparisons necessitated by the AHP.

Keywords: Entry; mode; Foreign; direct; investment; Analytic; hierarchy; process; Simulation (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305-0483(99)00032-8
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:jomega:v:27:y:1999:i:6:p:661-677

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Omega is currently edited by B. Lev

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