Advanced Search
MyIDEAS: Login to save this article or follow this journal

Foreign market entry mode in the hotel industry: The impact of country- and firm-specific factors

Contents:

Author Info

  • Quer, Diego
  • Claver, Enrique
  • Andreu, Rosario
Registered author(s):

    Abstract

    One of the key decisions in the internationalisation process of hotel firms is the choice of the entry mode into a foreign country. Many different factors influence this strategic decision. From a sample of 127 entries carried out by Spanish hotel firms between 2001 and 2003, this study provides new empirical evidence that cultural distance reduces the likelihood of choosing equity entry modes, while firm profitability and internal financial funds availability favour the assumption of greater commitment in the international expansion process.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S0969593107000066
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 16 (2007)
    Issue (Month): 3 (June)
    Pages: 362-376

    as in new window
    Handle: RePEc:eee:iburev:v:16:y:2007:i:3:p:362-376

    Contact details of provider:
    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description

    Order Information:
    Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic

    Related research

    Keywords: Hotel firms Internationalisation Entry mode Target/destination country Firm factors;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 29-53, March.
    2. Yigang Pan & Shaomin Li & David K Tse, 1999. "The Impact of Order and Mode of Market Entry on Profitability and Market Share," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 81-103, March.
    3. José Campa & Mauro F. Guillén, 1999. "The Internalization of Exports: Firm- and Location-Specific Factors in a Middle-Income Country," Management Science, INFORMS, vol. 45(11), pages 1463-1478, November.
    4. Keith D Brouthers, 2002. "Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance," Journal of International Business Studies, Palgrave Macmillan, vol. 33(2), pages 203-221, June.
    5. M Krishna Erramilli & Sanjeev Agarwal & Chekitan S Dev, 2002. "Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective," Journal of International Business Studies, Palgrave Macmillan, vol. 33(2), pages 223-242, June.
    6. J R Brown & C S Dev & Z Zhou, 2003. "Broadening the foreign market entry mode decision: separating ownership and control," Journal of International Business Studies, Palgrave Macmillan, vol. 34(5), pages 473-488, September.
    7. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May.
    8. Sayan Chatterjee & Jagdip Singh, 1999. "Are Tradeoffs Inherent in Diversification Moves? A Simultaneous Model for Type of Diversification and Mode of Expansion Decisions," Management Science, INFORMS, vol. 45(1), pages 25-41, January.
    9. Dirk Willem te Velde & Swapna Nair, 2006. "Foreign Direct Investment, Services Trade Negotiations and Development: The Case of Tourism in the Caribbean," Development Policy Review, Overseas Development Institute, vol. 24(4), pages 437-454, 07.
    10. M Krishna Erramilli, 1991. "The Experience Factor in Foreign Market Entry Behavior of Service Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 479-501, September.
    11. Farok J Contractor & Sumit K Kundu, 1998. "Modal Choice in a World of Alliances: Analyzing Organizational Forms in the International Hotel Sector," Journal of International Business Studies, Palgrave Macmillan, vol. 29(2), pages 325-356, June.
    12. Choelsoon Park, 2002. "The Effects of Prior Performance on the Choice Between Related and Unrelated Acquisitions: Implications for the Performance Consequences of Diversification Strategy," Journal of Management Studies, Wiley Blackwell, vol. 39(7), pages 1003-1019, November.
    13. Gatignon, Hubert & Anderson, Erin, 1988. "The Multinational Corporation's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(2), pages 305-36, Fall.
    14. Yadong Luo, 2001. "Determinants of Entry in an Emerging Economy: A Multilevel Approach," Journal of Management Studies, Wiley Blackwell, vol. 38(3), pages 443-472, 05.
    15. Sanjeev Agarwal & Sridhar N Ramaswami, 1992. "Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 1-27, March.
    16. Horst, Thomas, 1972. "Firm and Industry Determinants of the Decision to Invest Abroad: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 258-66, August.
    17. Preet S Aulakh & Masaaki Kotabe, 1997. "Antecedents and Performance Implications of Channel Integration in Foreign Markets," Journal of International Business Studies, Palgrave Macmillan, vol. 28(1), pages 145-175, March.
    18. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
    19. Keith D. Brouthers & Lance Eliot Brouthers, 2003. "Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust," Journal of Management Studies, Wiley Blackwell, vol. 40(5), pages 1179-1204, 07.
    20. Clark, Timothy & Pugh, Derek S., 2001. "Foreign country priorities in the internationalization process: a measure and an exploratory test on British firms," International Business Review, Elsevier, vol. 10(3), pages 285-303, June.
    21. Chen, Haiyang & Hu, Michael Y., 2002. "An analysis of determinants of entry mode and its impact on performance," International Business Review, Elsevier, vol. 11(2), pages 193-210, April.
    22. Jean-Fran�ois Hennart & Jorma Larimo, 1998. "The Impact of Culture on the Strategy of Multinational Enterprises: Does National Origin Affect Ownership Decisions?," Journal of International Business Studies, Palgrave Macmillan, vol. 29(3), pages 515-538, September.
    23. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan, vol. 17(3), pages 1-26, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. López-Duarte, Cristina & Vidal-Suárez, Marta M., 2013. "Cultural distance and the choice between wholly owned subsidiaries and joint ventures," Journal of Business Research, Elsevier, vol. 66(11), pages 2252-2261.
    2. López-Duarte, Cristina & Vidal-Suárez, Marta M., 2010. "External uncertainty and entry mode choice: Cultural distance, political risk and language diversity," International Business Review, Elsevier, vol. 19(6), pages 575-588, December.
    3. Musso, Fabio & Francioni, Barbara, 2011. "Foreign Markets Entry Mode Decision for Italian Small and Medium-Sized Enterprises," MPRA Paper 50067, University Library of Munich, Germany, revised 31 Oct 2011.
    4. Musso, Fabio & Francioni, Barbara, 2009. "Foreign markets entry mode decision for SMEs. Key factors and role of industrial districts," MPRA Paper 32153, University Library of Munich, Germany.
    5. Lin, Wen-Ting & Liu, Yunshi & Cheng, Kuei-Yang, 2011. "The internationalization and performance of a firm: Moderating effect of a firm's behavior," Journal of International Management, Elsevier, vol. 17(1), pages 83-95, March.
    6. Jópez Milla Julián & Driha Oana Madalina, 2009. "Spanish Hotel International Expansion: Evolution And Tendency. The Role Of Eastern Europe," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 181-187, May.
    7. Pappu, Ravi & Quester, Pascale, 2010. "Country equity: Conceptualization and empirical evidence," International Business Review, Elsevier, vol. 19(3), pages 276-291, June.
    8. Morschett, Dirk & Schramm-Klein, Hanna & Swoboda, Bernhard, 2010. "Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?," Journal of International Management, Elsevier, vol. 16(1), pages 60-77, March.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:16:y:2007:i:3:p:362-376. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.