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Entry mode choices in international markets: examining the antecedents of service firms' strategies

Author

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  • Francesco Parola
  • Giovanni Satta
  • Luca Persico
  • Enrico Di Bella

Abstract

The intensification of markets globalisation and the diffusion of internationalisation strategies across various businesses, led the academic literature to challenge the notion of entry modes in international ventures. Nevertheless, with specific regard to soft-service industries, only a few authors investigated the entry-mode behaviour of firms for testing the applicability of traditional theories. Therefore, this paper investigates the antecedents of firms' entry choice on a quantitative basis, focusing on the wholly owned subsidiary/joint venture dilemma. The empirical analysis is conducted on 416 overseas market entries in the container port industry. The manuscript proposes and tests an eclectic model for evaluating the determinants of foreign entry in soft-service industries, including internal, external and cross-cultural factors.

Suggested Citation

  • Francesco Parola & Giovanni Satta & Luca Persico & Enrico Di Bella, 2013. "Entry mode choices in international markets: examining the antecedents of service firms' strategies," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 5(1/2), pages 34-57.
    • Handle: RePEc:ids:ijgsbu:v:5:y:2013:i:1/2:p:34-57
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    Citations

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    Cited by:

    1. Giovanni Satta & Francesco Parola & Simone Caschili, 2014. "Dealing with uncertainty and volatility in the port industry network: social and instrumental antecedents of "clique" survival," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(7), pages 615-633, December.
    2. Tang, Ryan W. & Buckley, Peter J., 2020. "Host country risk and foreign ownership strategy: Meta-analysis and theory on the moderating role of home country institutions," International Business Review, Elsevier, vol. 29(4).
    3. Athanasios A. Pallis & Francesco Parola & Giovanni Satta & Theo E. Notteboom, 2018. "Private entry in cruise terminal operations in the Mediterranean Sea," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(1), pages 1-28, March.
    4. Satta, Giovanni & Notteboom, Theo & Parola, Francesco & Persico, Luca, 2017. "Determinants of the long-term performance of initial public offerings (IPOs) in the port industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 135-153.
    5. Parola, Francesco & Notteboom, Theo & Satta, Giovanni & Rodrigue, Jean-Paul, 2013. "Analysis of factors underlying foreign entry strategies of terminal operators in container ports," Journal of Transport Geography, Elsevier, vol. 33(C), pages 72-84.

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