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

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  • Quer, Diego
  • Claver, Enrique
  • Andreu, Rosario

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.

Suggested Citation

  • 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, vol. 16(3), pages 362-376, June.
  • Handle: RePEc:eee:iburev:v:16:y:2007:i:3:p:362-376
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. Pappu, Ravi & Quester, Pascale, 2010. "Country equity: Conceptualization and empirical evidence," International Business Review, Elsevier, vol. 19(3), pages 276-291, June.
    3. repec:eee:touman:v:59:y:2017:i:c:p:1-6 is not listed on IDEAS
    4. 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.
    5. repec:eee:touman:v:55:y:2016:i:c:p:225-237 is not listed on IDEAS
    6. repec:eee:touman:v:61:y:2017:i:c:p:451-464 is not listed on IDEAS
    7. 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.
    8. 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.
    9. Santos, Maria & Brochado, Ana & Esperança, José, 2016. "Foreign direct investment patterns of global hotel chains," Journal of Business Research, Elsevier, vol. 69(11), pages 5235-5240.
    10. 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.
    11. 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.
    12. Ivanov, Stanislav & Ivanova, Maya, 2016. "Market penetration of hotel chains: Does culture matter?," Annals of Tourism Research, Elsevier, vol. 57(C), pages 259-264.
    13. 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.

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