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A retrospective on: Institutional, cultural and transaction cost influences on entry mode choice and performance

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Abstract

For several decades researchers have focused on the entry mode decision because it is critically important for firms expanding abroad. Despite this attention we still lack clear tools to help managers make effective entry decisions. In this paper I review past research exploring transaction cost and institutional perspectives of mode choice, provide a critique of this literature, and generate suggestions to move our knowledge forward. In addition, I review the limited research exploring entry mode performance, and emphasize the importance of examining the normative merits of proposed theoretical models. I hope these suggestions will lead to the development of prescriptive tools for managers to make better entry mode decisions that result in improved firm performance.

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Acknowledgements

The author thanks John Cantwell, Myles Shaver, Xavier Martin, Jean Boddewyn, and an anonymous reviewer for helpful suggestions that have improved this paper.

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Authors and Affiliations

  1. King's College London, UK

    Keith D Brouthers

  2. University of Groningen, The Netherlands

    Keith D Brouthers

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  1. Keith D Brouthers
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Accepted by John Cantwell, Editor-in-Chief, 7 July 2012. This paper was single-blind reviewed.

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Brouthers, K. A retrospective on: Institutional, cultural and transaction cost influences on entry mode choice and performance. J Int Bus Stud 44, 14–22 (2013). https://doi.org/10.1057/jibs.2012.23

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  • DOI: https://doi.org/10.1057/jibs.2012.23

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