How much is new in Brouthers et al.’s new foreign entry modes, and do they challenge the transaction cost theory of entry mode choice?

Abstract Brouthers, Chen, Sali and Shaheer argue that recent increases in economic integration coupled with technological advances, such as digitization, have led to the use of new foreign market entry modes which they say not been sufficiently acknowledged nor satisfactorily explained by an extant literature dominated transaction cost theory (TCT). To make sense these modes, introduce a framework based on exploitation–exploration distinction embeddedness. I first outline current thinking TCT then review Brouthers et al.’s four novel identifying what is genuinely about them, similar we already know. conclude constitute changes kind rather than substance, show using TCT. In contrast, exploitation–exploration–embeddedness unconvincing, because (a) exploration appropriate term describe motivation most resource strategic asset acquisition direct investment; (b) there considerable variation embeddedness within some their modes; (c) availability intermediaries breaks hypothesized one-to-one correspondence between need for mode.