IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v17y1986i3p1-26.html
   My bibliography  Save this article

Modes of Foreign Entry: A Transaction Cost Analysis and Propositions

Author

Listed:
  • Erin Anderson

    (University of Pennsylvania)

  • Hubert Gatignon

    (University of Pennsylvania)

Abstract

A “frontier issue” in international marketing is the appropriate choice of entry mode in foreign markets. The objective of this paper is to offer a transaction cost framework for investigating the entry mode decision. This framework provides 1) a theoretical basis for systematically interrelating the literature into propositions, 2) propositions about interactions which resolve the apparently contradictory arguments advanced to date. Specifically, the paper:Illustrates the feasibility of clustering 17 entry modes into the degree of control the mode provides the entrant;Proposes that the most appropriate (i.e., most efficient) entry mode is a function of the tradeoff between control and the cost of resource commitmentadvances testable propositions delimiting the circumstances under which each mode maximizes long-term efficiency.The entry mode literature is reviewed in the context of these propositions, and guidelines are derived for choosing the appropriate mode of entry, given certain characteristics of the firm, the product, and the environment.© 1986 JIBS. Journal of International Business Studies (1986) 17, 1–26

Suggested Citation

  • Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    • Handle: RePEc:pal:jintbs:v:17:y:1986:i:3:p:1-26
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jibs/journal/v17/n3/pdf/8490432a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/jibs/journal/v17/n3/full/8490432a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:17:y:1986:i:3:p:1-26. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.