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Broadening the foreign market entry mode decision: separating ownership and control

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Author Info

  • J R Brown

    (Department of Marketing, Pamplin College of Business, Virginia Tech, Blacksburg, USA)

  • C S Dev

    (School of Hotel Administration, Cornell University, Ithaca, NY, USA)

  • Z Zhou

    (School of Business, University of Hong Kong, Pokfulam, P.R.China)

Abstract

This paper argues that the ownership and control dimensions of foreign market entry mode choice should be separated, and that foreign market entry mode decisions should be expanded to business activities beyond production and distribution. Empirical results from the global hotel industry indicate that the transferability of the entrant's competitive advantages, the local market's absorptive capacity, and the availability of trustworthy local partners differentially affect the ownership and control dimensions of the entry mode decision. Journal of International Business Studies (2003) 34, 473–488. doi:10.1057/palgrave.jibs.8400050

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

Volume (Year): 34 (2003)
Issue (Month): 5 (September)
Pages: 473-488

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Handle: RePEc:pal:jintbs:v:34:y:2003:i:5:p:473-488

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Cited by:
  1. Jell-Ojobor, Maria & Windsperger, Josef, 2014. "The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model," Journal of International Management, Elsevier, Elsevier, vol. 20(2), pages 153-187.
  2. Karhunen, Päivi, 2008. "Managing international business operations in a changing institutional context: The case of the St. Petersburg hotel industry," Journal of International Management, Elsevier, Elsevier, vol. 14(1), pages 28-45, March.
  3. De Beule, Filip & Elia, Stefano & Piscitello, Lucia, 2014. "Entry and access to competencies abroad: Emerging market firms versus advanced market firms," Journal of International Management, Elsevier, Elsevier, vol. 20(2), pages 137-152.
  4. Brouthers, Lance Eliot & Mukhopadhyay, Somnath & Wilkinson, Timothy J. & Brouthers, Keith D., 2009. "International market selection and subsidiary performance: A neural network approach," Journal of World Business, Elsevier, Elsevier, vol. 44(3), pages 262-273, July.
  5. 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.
  6. Canabal, Anne & White III, George O., 2008. "Entry mode research: Past and future," International Business Review, Elsevier, Elsevier, vol. 17(3), pages 267-284, June.
  7. Quer, Diego & Claver, Enrique & Andreu, Rosario, 2007. "Foreign market entry mode in the hotel industry: The impact of country- and firm-specific factors," International Business Review, Elsevier, Elsevier, vol. 16(3), pages 362-376, June.
  8. Karhunen, Päivi & Löfgren, Joan & Kosonen, Riitta, 2008. "Revisiting the relationship between ownership and control in international business operations: Lessons from transition economies," Journal of International Management, Elsevier, Elsevier, vol. 14(1), pages 78-88, March.
  9. Spyros Arvanitis & Tobias Stucki & Heinz Hollenstein, 2013. "Determinants of Internationalisation – Do they Differ among Sectors and Business Functions? Evidence from Firm-level Data," KOF Working papers, KOF Swiss Economic Institute, ETH Zurich 13-348, KOF Swiss Economic Institute, ETH Zurich.
  10. 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.
  11. J. Windsperger, 2009. "Allocation of decision rights in joint ventures," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 30(8), pages 491-501.

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