Firm-specific factors and entry mode choice

Entry mode choice and target firm selection: private and collective incentive analysis

The purpose of this paper is to formalize the choices of market entry strategy (Export Vs Greenfield investment Vs Cross border M&A) and the target selection (Acquisition of high-productivity firm or low-productivity one) for a foreign firm, and to delineate the relationship between foreign firm’s incentive and host government’s intention from an Industrial Organization (IO) perspective. It is ...

Entry mode choice of multinational banks

When expanding abroad, a multinational bank faces a trade-o¤ between accessing a foreign country via cross border lending or a …nancial foreign direct investment, i.e. green…eld or acquisition entry. We analyze the entry mode choice of multinational banks and explicitly derive the entry mode pattern in the banking industry. Moreover, we show that in less developed banking markets, a trend towar...

Institutions, Transaction Costs, and Entry Mode Choice in Eastern Europe

That multinational enterprises entering a new market must adapt their strategies to the host country environment has been a hallmark finding in the international business literature. In recent years, increasing attention has been paid to the adaptation of these strategies to the demands of the institutions in the host economies (Oxley, 1999; Peng, 2000). Institutions are important for the funct...

Transaction Costs in Institutional Environment and Entry Mode Choice

In the study presented institutional context is discussed in terms of companies’ entry mode choice. In contrary to many previous analyses, instead of using one or two aggregated variables, a set of eleven determinants is used to establish equity and non-equity internationalization friendly conditions. Based on secondary data, 140 countries are analyzed and grouped into clusters revealing simila...

The influence of firm-specific advantages and entry mode choice on performance: the case of Japanese foreign direct investment in Australia