Choice of foreign R&D entry mode and its relation to firm performance: A firm-level analysis for Switzerland and Austria

Heinz Hollenstein () and Martin Berger

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2015, vol. 9, No 2015-34, 47 pages

Abstract: The objective of this study is to identify the determinants of a firm's foreign entry mode choice and the relationship between mode selection and firm performance for the specific case of R&D-a topic not yet investigated in entry mode research. Separate estimates of a Heckman selection model for Austria and Switzerland based on comparable firm-level data and variable specification show for both countries that the OLI model is well-suited to explain not only the propensity to invest in R&D abroad but also the related choice between an equity-based and a non-equity governance mode. Moreover, the research reveals that foreign R&D activity is positively related to firm performance and that this relationship is stronger in the case of an equity-based mode of governance, however only in the Swiss case. The differences between the two countries primarily reflect the much higher degree of internationalisation of the Swiss economy.

Keywords: Internationalisation of R&D; Foreign R&D entry mode choice; International R&D co-operation; Foreign R&D governance and firm performance (search for similar items in EconPapers)
JEL-codes: F23 F61 L24 O32 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:201534

DOI: 10.5018/economics-ejournal.ja.2015-34

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