Entry modes of foreign direct investment in China: a multinomial logit approach

Information management for the internationalization of SMEs: An exploratory study based on a strategic alignment perspective

“…The first one is called export entry mode (exportation only); the second one is the contractual entry mode (transfer of technological or human skills, strategic alliances, subcontracting), and the third is the investment entry mode (joint-venture, sole venture or foreign direct investment which includes wholly-owned subsidiary). Other researchers have focused on binary or multinomial choices (Wei et al; such as acquisition vs. greenfield (Harzing, 2001), wholly-owned subsidiary vs. equity-based cooperative venture or non-equitybased cooperative venture (Kim and Hwang, 1992;Hill et al 1990;Agerwal and Ramaswami, 1992). The organization chooses the strategy based on its requirements, its resources, the complexity of the operation and its profitability (Ruzzier & Konečnik, 2006).…”

Factors enhancing the choice of higher resource commitment entry modes in international new ventures

“…In this regard, the criteria used in several recent works allow us to develop a measurement index for entry modes (Pan and Tse 2000;Nakos and Brouthers 2002;Kalantaridis 2004;Wei et al 2005). In specifying the entry modes, we followed studies that have considered entry modes as a spectrum of involvement and, consequently have tried to overcome the dichotomy between equity and non-equity modes (Burgel and Murray 2000;Zahra et al 2000;Brouthers 2002;Wei et al 2005). Accordingly, to construct an entry mode index, respondents were asked to specify the entry mode that they used in their most recent foreign entry (Nakos and Brouthers 2002).…”

International new ventures as “small multinationals”: The importance of marketing capabilities

“…In specifying the entry modes, we followed studies that have considered entry modes as a spectrum of involvement and, consequently have tried to overcome the dichotomy between equity and non-equity modes (Burgel & Murray, 2000;Brouthers, 2002;Wei et al, 2005). Accordingly, to construct an entry mode index, the CEOs were asked how frequently (from 1 = never to 5 = always) their businesses had opted for each of the following ten entry modes to grow in foreign markets: brand licensing, commercialization agreements, franchising, production agreements, direct export, joint-venture, acquisition of a sufficiently high capital share to control a business that was operating in the new market, acquisition of 100% of the capital of an already existing business and creation of a new business or a subsidiary.…”