Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective

M Krishna Erramilli, Sanjeev Agarwal and Chekitan S Dev
Additional contact information
M Krishna Erramilli: Nanyang Technological University
Sanjeev Agarwal: Iowa State University
Chekitan S Dev: Cornell University

Journal of International Business Studies, 2002, vol. 33, issue 2, 223-242

Abstract: Many studies have examined the choice between different types of equity and non-equity modes; however, none has focused on the choice between different types of non-equity modes that service firms employ routinely. This study develops a theoretical framework based on the “organizational capability” perspective to explain the choice between two non-equity modes— franchising and management-service contracts. While previous studies are based on the premise that foreign market entrants choose a mode—equity or non-equity—that offers them most control given their particular circumstances, the premise of this study is that foreign entrants choose a non-equity mode that, in addition, offers effective transfer of the firm's capabilities to the host-country venture.© 2002 JIBS. Journal of International Business Studies (2002) 33, 223–242

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v33/n2/pdf/8491014a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v33/n2/full/8491014a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:jintbs:v:33:y:2002:i:2:p:223-242

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().