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Mode Configuration Diversity: A New Perspective on Foreign Entry Mode Choice

Bent Petersen, Gabriel Benito (), Lawrence S. Welch and Christian Geisler Asmussen

Chapter 3 in Thought Leadership in Advancing International Business Research, 2008, pp 57-78 from Palgrave Macmillan

Abstract: Abstract There is a large body of literature on modes of entry in foreign markets, with a focus on make-or-buy decisions (Melin, 1992; Sarkar and Cavusgil, 1996; Datta et al., 2002; Malhotra et al., 2003). By using different theories and a large number of contextual variables, entry mode researchers have been quite successful in making predictions regarding such choices. They have had a dual aim of both testing theory and predicting firms’ choice of foreign market operation method given a number of characteristics of firms, products, industries, and home/host markets. However, researchers’ quest for theory testing and predictive vigor has, especially in an empirical context, led to simplifying the mode choices made by entrant firms. The success in theory testing and entry mode prediction comes at a cost: namely, the sacrifice of subtleties in how firms structure foreign activities — including the opportunities for using multiple and constantly changing mode packages in a foreign market (Benito and Welch, 1994; Petersen and Welch, 2002; Benito et al., 2005).

Keywords: Foreign Market; Entry Mode; Strategic Management Journal; Contract Parti; International Firm (search for similar items in EconPapers)
Date: 2008
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DOI: 10.1057/9780230594234_4

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