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A contingency framework for the mode of entry decision

  • Kumar, V.
  • Subramanian, Velavan
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    The extant literature on the choice of entry modes into international markets has assumed that the mode of entry is a single stage rational analytic decision by the manager. A contingency framework for the mode of entry decision which accomodates alternative decision strategies is presented. As part of the contingency framework, a strategy--rational analytic--used by past researchers and an alternative strategy of decision making--cybernetic--are discussed. Each decision strategy has its own merits and disadvantages. An outcome of the cybernetic strategy is an hierarchical model for the mode of entry decision. Implications of the alternative strategies for the mode of entry decision are also provided.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1090951697900250
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    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 32 (1997)
    Issue (Month): 1 (April)
    Pages: 53-72

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    Handle: RePEc:eee:worbus:v:32:y:1997:i:1:p:53-72
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    1. Sanjeev Agarwal & Sridhar N Ramaswami, 1992. "Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 1-27, March.
    2. 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.
    3. Benjamin Gomes-Casseres, 1990. "Firm Ownership Preferences and Host Government Restrictions: An Integrated Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 21(1), pages 1-22, March.
    4. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan, vol. 11(1), pages 9-31, March.
    5. 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.
    6. Farok J Contractor, 1990. "Ownership Patterns of U.S. Joint Ventures Abroad and the Liberalization of Foreign Government Regulations in the 1980s: Evidence from the Benchmark Surveys," Journal of International Business Studies, Palgrave Macmillan, vol. 21(1), pages 55-73, March.
    7. Nathan Fagre & Louis T Wells, 1982. "Bargaining Power of Multinationals and Host Governments," Journal of International Business Studies, Palgrave Macmillan, vol. 13(2), pages 9-24, June.
    8. 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.
    9. John Hagedoorn & Rajneesh Narula, 1996. "Choosing Organizational Modes of Strategic Technology Partnering: International and Sectoral Differences," Journal of International Business Studies, Palgrave Macmillan, vol. 27(2), pages 265-284, June.
    10. C Patrick Woodcook & Paul W Beamish & Shige Makino, 1994. "Ownership-Based Entry mode Strategies and International Performance," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 253-273, June.
    11. Donald J Lecraw, 1984. "Bargaining Power, Ownership, and Profitability of Transnational Corporations in Developing Countries," Journal of International Business Studies, Palgrave Macmillan, vol. 15(1), pages 27-43, March.
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