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Mode Configuration Diversity: A New Perspective on Foreign Entry Mode Choice

In: Thought Leadership in Advancing International Business Research

Author

Listed:
  • Bent Petersen
  • Gabriel R. G. Benito
  • Lawrence S. Welch
  • Christian Geisler Asmussen

Abstract

There is a large body of literature on modes of entry in foreign markets, with a focus on make-or-buy decisions (Melin, 1992; Sarkar and Cavusgil, 1996; Datta et al., 2002; Malhotra et al., 2003). By using different theories and a large number of contextual variables, entry mode researchers have been quite successful in making predictions regarding such choices. They have had a dual aim of both testing theory and predicting firms’ choice of foreign market operation method given a number of characteristics of firms, products, industries, and home/host markets. However, researchers’ quest for theory testing and predictive vigor has, especially in an empirical context, led to simplifying the mode choices made by entrant firms. The success in theory testing and entry mode prediction comes at a cost: namely, the sacrifice of subtleties in how firms structure foreign activities — including the opportunities for using multiple and constantly changing mode packages in a foreign market (Benito and Welch, 1994; Petersen and Welch, 2002; Benito et al., 2005).

Suggested Citation

  • Bent Petersen & Gabriel R. G. Benito & Lawrence S. Welch & Christian Geisler Asmussen, 2008. "Mode Configuration Diversity: A New Perspective on Foreign Entry Mode Choice," Palgrave Macmillan Books, in: Arie Y. Lewin & S. Tamer Cavusgil & G. Tomas M. Hult & David A. Griffith (ed.), Thought Leadership in Advancing International Business Research, chapter 3, pages 57-78, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59423-4_4
    DOI: 10.1057/9780230594234_4
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    Citations

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    Cited by:

    1. 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.
    2. Seok Jin Ko, 2019. "The Differing Foreign Entry Mode Choices for Sales and Production Subsidiaries of Multinational Corporations in the Manufacturing Industry," Sustainability, MDPI, vol. 11(15), pages 1-18, July.
    3. O'Higgins, Ciara & Andreeva, Tatiana & Goya, Nekane Aramburu, 2022. "The hows and whys of foreign operation mode combinations: The role of knowledge processes," Journal of World Business, Elsevier, vol. 57(2).
    4. Gabriel R. G. Benito & Bent Petersen & Lawrence S. Welch, 2011. "Mode Combinations and International Operations," Management International Review, Springer, vol. 51(6), pages 803-820, December.
    5. Niron Hashai & Christian G. Asmussen & Gabriel R. G. Benito & Bent Petersen, 2010. "Technological Knowledge Intensity and Entry Mode Diversity," Management International Review, Springer, vol. 50(6), pages 659-681, December.

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