Organizing foreign market activities: From entry mode choice to configuration decisions
AbstractThis article takes a critical look at the extant foreign entry mode research and argues that a richer and more and dynamic view is needed in order to provide a realistic presentation of how firms organize their foreign activities. While researchers have typically assumed a very limited range of foreign operation modes, we propose a systemic rather than a myopic view of foreign operation modes by modeling the entry mode decisions of the firm as a corporate-level process. We substantially broaden the scope of mode choice, thereby moving toward a configuration decision approach. We model and provide numerical examples of how international interdependencies impact mode configuration, and then extend the analysis by incorporating dynamic aspects.
Download InfoIf 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.
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 InfoArticle provided by Elsevier in its journal International Business Review.
Volume (Year): 18 (2009)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description
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.:
- Hirsch, Seev, 1976. "An International Trade and Investment Theory of the Firm," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 258-70, July.
- Gabriel R.G. Benito & Torben Pedersen & Bent Petersen, 2005. "Export channel dynamics: an empirical investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 159-173.
- Peter J Buckley & Mark C Casson, 1998. "Analyzing Foreign Market Entry Strategies: Extending the Internalization Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 29(3), pages 539-561, September.
- Buckley, Peter J & Casson, Mark, 1981. "The Optimal Timing of a Foreign Direct Investment," Economic Journal, Royal Economic Society, vol. 91(361), pages 75-87, March.
- Peter J Buckley & Niron Hashai, 2004. "A global system view of firm boundaries," Journal of International Business Studies, Palgrave Macmillan, vol. 35(1), pages 33-45, January.
- Hennart, J.-F.M.A., 1988. "Upstream vertical integration in the world aluminum and tin industries : a comparative study of the choice between market and intrafirm coordination," Open Access publications from Tilburg University urn:nbn:nl:ui:12-175858, Tilburg University.
- 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.
- Clark, Timothy & Pugh, Derek S. & Mallory, Geoff, 1997. "The process of internationalization in the operating firm," International Business Review, Elsevier, vol. 6(6), pages 605-623, December.
- Teece, David J., 1986. "Transactions cost economics and the multinational enterprise An Assessment," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 21-45, March.
- Benito, Gabriel R. G. & Pedersen, Torben & Petersen, Bent, 1999. "Foreign operation methods and switching costs: conceptual issues and possible effects," Scandinavian Journal of Management, Elsevier, vol. 15(2), pages 213-229, June.
- Calof, Jonathan L., 1993. "The mode choice and change decision process and its impact on international performance," International Business Review, Elsevier, vol. 2(1), pages 97-120.
- Anne-Wil Harzing, 2000. "An Empirical Analysis and Extension of the Bartlett and Ghoshal Typology of Multinational Companies," Journal of International Business Studies, Palgrave Macmillan, vol. 31(1), pages 101-120, March.
- Ignatius Horstmann & James R. Markusen, 1987. "Licensing versus Direct Investment: A Model of Internalization by the Multinational Enterprise," Canadian Journal of Economics, Canadian Economics Association, vol. 20(3), pages 464-81, August.
- Manolis, Chris & Nygaard, Arne & Stillerud, Bård, 1997. "Uncertainty and vertical control: An international investigation," International Business Review, Elsevier, vol. 6(5), pages 501-518, October.
- Rugman, Alan M, 1986. "New Theories of the Multinational Enterprise: An Assessment of Internalization Theory," Bulletin of Economic Research, Wiley Blackwell, vol. 38(2), pages 101-18, May.
- Pietra Rivoli & Eugene Salorio, 1996. "Foreign Direct Investment and Investment under Uncertainty," Journal of International Business Studies, Palgrave Macmillan, vol. 27(2), pages 335-357, June.
- Prasad Padmanabhan & Kang Rae Cho, 1999. "Decision Specific Experience in Foreign Ownership and Establishment Strategies: Evidence from Japanese Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 25-41, March.
- James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
- Bruce Kogut, 1991. "Joint Ventures and the Option to Expand and Acquire," Management Science, INFORMS, vol. 37(1), pages 19-33, January.
- Wesley M. Cohen & Daniel A. Levinthal, 1994. "Fortune Favors the Prepared Firm," Management Science, INFORMS, vol. 40(2), pages 227-251, February.
- Martin Berger & Heinz Hollenstein, 2012.
"Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm’s Performance,"
FIW Working Paper series
- Heinz Hollenstein & Martin Berger, 2012. "Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm’s Performance," KOF Working papers 12-305, KOF Swiss Economic Institute, ETH Zurich.
- Kemp-Benedict, Eric, 2012. "The national bioenergy investment model: Technical documentation," MPRA Paper 37835, University Library of Munich, Germany.
- Casillas, José C. & Moreno, Ana M. & Acedo, Francisco J., 2012. "Path dependence view of export behaviour: A relationship between static patterns and dynamic configurations," International Business Review, Elsevier, vol. 21(3), pages 465-479.
- Barbara Francioni, 2011. "Changes in Entry Mode Strategy for Italian SMEs," Annals - Economic and Administrative Series -, Faculty of Business and Administration, University of Bucharest, vol. 5(1), pages 99-116, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.