Abstract
Firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode. The options available to a firm include exporting, licensing, joint venture and sole venture. Several factors that determine the choice of a specific foreign market entry mode have been identified in previous literature. These factors can be classified into three categories: ownership advantages of a firm, location advantages of a market, and internalization advantages of integrating transactions. This study examines the independent and joint influences of these factors on the choice of an entry mode. Multinomial logistic regression model is employed to test the hypothesized effects.
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*Sanjeev Agarwal (Ph.D., The Ohio State University) is Assistant Professor in the Department of Marketing at Iowa State University. His research interests include multinational marketing strategies, salesforce management, and environmentalism. He has previously published in Advances in International Marketing and International Trade Journal and contributed to national and international conference proceedings.
**Sridhar N. Ramaswami (Ph.D., The University of Texas at Austin) is Assistant Professor in the Department of Marketing at Iowa State University. His research interests include multinational marketing strategies, organizational adaptation and effectiveness, inter-organizational relations, and self-management behavior of marketing employees. He has previously published in International Journal of Research in Marketing and Technology Forecasting and Social Change, and contributed to national and international conference proceedings.
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Agarwal, S., Ramaswami, S. Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internalization Factors. J Int Bus Stud 23, 1–27 (1992). https://doi.org/10.1057/palgrave.jibs.8490257
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DOI: https://doi.org/10.1057/palgrave.jibs.8490257