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Dunning's eclectic theory and the smaller firm: The impact of ownership and locational advantages on the choice of entry-modes in the computer software industry

  • Brouthers, Keith D.
  • Brouthers, Lance Eliot
  • Werner, Steve
Registered author(s):

    This paper set out to investigate the entry-mode selection activities of small- and medium-sized service firms. Based on Dunning's eclectic theory (1988, Journal of International Business Studies, Vol. 19, No. 1, pp. 1-31; 1993, Multinational Enterprises and the Global Economy, AddisondashWesley) and previous entry-mode research, the entry-mode selection activities of US computer software firms were examined. The findings tend to indicate that ownership and locational advantages influence the entry-mode choice of small- and medium-sized firms in a manner similar to that of larger firms. Additionally, this study confirms the applicability of the eclectic theory of foreign direct investment to a second sector of the services industry.

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    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 5 (1996)
    Issue (Month): 4 (August)
    Pages: 377-394

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    Handle: RePEc:eee:iburev:v:5:y:1996:i:4:p:377-394
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    1. James D Goodnow & James E Hansz, 1972. "Enviromental Determinants of Overseas Market Entry Strategies*," Journal of International Business Studies, Palgrave Macmillan, vol. 3(1), pages 33-50, March.
    2. repec:ner:tilbur:urn:nbn:nl:ui:12-174433 is not listed on IDEAS
    3. Arnold K Weinstein, 1977. "Foreign Investments by Service Firms: The Case of Multinational Advertising Agencies," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 83-91, March.
    4. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
    5. Peter J Buckley, 1988. "The Limits of Explanation: Testing the Internalization Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 19(2), pages 181-193, June.
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    7. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
    8. Gomes-Casseres, Benjamin, 1989. "Ownership structures of foreign subsidiaries : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 11(1), pages 1-25, January.
    9. Cavusgil, S. Tamer & Naor, Jacob, 1987. "Firm and management characteristics as discriminators of export marketing activity," Journal of Business Research, Elsevier, vol. 15(3), pages 221-235, June.
    10. J J Boddewyn & Marsha Baldwin Halbrich & A C Perry, 1986. "Service Multinationals: Conceptualization, Measurement and Theory," Journal of International Business Studies, Palgrave Macmillan, vol. 17(3), pages 41-57, September.
    11. 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.
    12. Hamilton, William F., 1990. "The dynamics of technology and strategy," European Journal of Operational Research, Elsevier, vol. 47(2), pages 141-152, July.
    13. Warren J Bilkey, 1978. "An Attempted Integration of the Literature on the Export Behavior of Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 9(1), pages 33-46, March.
    14. Farok J Contractor, 1984. "Choosing Between Direct Investment and Licensing: Theoretical Considerations and Empirical Tests," Journal of International Business Studies, Palgrave Macmillan, vol. 15(3), pages 167-188, September.
    15. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 29-53, March.
    16. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
    17. M Krishna Erramilli, 1991. "The Experience Factor in Foreign Market Entry Behavior of Service Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 479-501, September.
    18. Gatignon, Hubert & Anderson, Erin, 1988. "The Multinational Corporation's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(2), pages 305-36, Fall.
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