The Hierarchical Model of Market Entry Modes
Yigang Pan and
David K Tse
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Yigang Pan: York University and University of Hong Kong
David K Tse: University of Hong Kong
Journal of International Business Studies, 2000, vol. 31, issue 4, 535-554
Abstract:
In this study, we propose and test a hierarchical model of market entry modes. Entry modes can first be viewed as equity-based versus non-equity-based. Within equity-based modes, the choice is between wholly owned operations and equity joint ventures, while within non-equity-based modes, the choice is between contractual agreements and export. Empirically, we demonstrate that there are factors that exert substantial influences at the equity versus non-equity level, but rather weak influences at the lower level of choice hierarchy. The empirical results are based on a sample of over 10,000 foreign entry activities into China between 1979 to 1998. The findings provide supportive evidence for the hierarchical model of market entry modes.© 2000 JIBS. Journal of International Business Studies (2000) 31, 535–554
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:31:y:2000:i:4:p:535-554
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