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Organizing foreign market activities: From entry mode choice to configuration decisions

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  • Asmussen, Christian G.
  • Benito, Gabriel R.G.
  • Petersen, Bent

Abstract

This 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.

Suggested Citation

  • Asmussen, Christian G. & Benito, Gabriel R.G. & Petersen, Bent, 2009. "Organizing foreign market activities: From entry mode choice to configuration decisions," International Business Review, Elsevier, vol. 18(2), pages 145-155, April.
  • Handle: RePEc:eee:iburev:v:18:y:2009:i:2:p:145-155
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    References listed on IDEAS

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    1. repec:spr:manint:v:51:y:2011:i:6:d:10.1007_s11575-011-0101-4 is not listed on IDEAS
    2. Kemp-Benedict, Eric, 2012. "The national bioenergy investment model: Technical documentation," MPRA Paper 37835, University Library of Munich, Germany.
    3. 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.
    4. O'Hagan-Luff, Martha & Berrill, Jenny, 2016. "US firms – How global are they? A longitudinal study," International Review of Financial Analysis, Elsevier, vol. 44(C), pages 205-216.
    5. Chen, Chung-Jen & Lin, Ya-Hui, 2016. "Managing the foreign investment portfolio: How industry and governance diversity influence firm performance," International Business Review, Elsevier, vol. 25(6), pages 1235-1245.
    6. repec:spr:manint:v:50:y:2010:i:6:d:10.1007_s11575-010-0059-7 is not listed on IDEAS
    7. Martin Berger & Heinz Hollenstein, 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.
    8. 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.

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