While a large body of research has dealt with firm’s choice of ownership mode when entering a foreign market, little attention has been paid to the ex-post performance after initial entry. This article combines the transactional cost economics, Dunning’s OLI paradigm as well as the institutional view as an integrative framework to examine the relationship of firm’s foreign market entry mode choice and performance outcomes. We suggest propositions for empirical study and also consider research implications in relation to these theoretical perspectives as an explanation for firm’s internationalization.
Acquaah, M.2009). International joint venture partner origin, strategic choice, and performance: A comparative analysis in an emerging economy in Africa. Journal of International Management, 15(1), 46–60.
2.
Agarwal, S., & Ramaswami, N.1992). Choice of foreign market entry mode: Impact of ownership, location and internationalisation factors. Journal of International Business Studies, 23(1), 1–28.
3.
Anderson, E., & Gatignon, H.1986). Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies, 17(3), 1–26.
4.
Arino, A.2003). Measures of strategic alliance performance: An analysis of construct validity. Journal of International Business Studies, 34(1), 66–79.
5.
Barkema, H., & Drojendijk, R.2007 . Internationalising in small, incremental or large steps?Journal of International Business Studies, 38(7), 1132–1148.
6.
Brouthers, K.D.2002). Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of International Business Studies, 33(2), 203–221.
7.
Brouthers, K.D., & Bamossy, G.2006). Post-Formation processes in Eastern And Western European joint ventures. Journal of Management Studies, 43(2), 203–229.
8.
Brouthers, K.D., & Brouthers, L.E.2000). Acquisition or greenfield start-up? Institutional, cultural and transaction cost influence. Strategic Management Journal, 21(1), 89–97.
9.
Brouthers, K.D., & Brouthers, L.E.2002Why service and manufacturing entry mode choice differ: The influence of transaction cost factors, risk and trust. Journal of Management Studies, 40(5), 1179–1204.
10.
Brouthers, K.D., Brouthers, L.E., & Werner, S.2008). Resource-based advantages in an international context. Journal of Management, 34(2), 189–217.
11.
Brouthers, K.D., Brouthers, L.E., & Werner, S.. 1999 . Is Dunning’s eclectic framework descriptive or normative?Journal of International Business Studies, 30(4), 831–844.
12.
Brouthers, K.D., & Hennart, J.F.2007). Boundaries of the firm: Insights from international entry mode research. Journal of Management, 33(3), 395–425.
13.
Canabal, A., & White, G.O. III. 2008). Entry mode research: Past and future. International Business Review, 17(3), 267–284.
14.
Chan, C.M., Isobe, T., & Makino, S.2008). Which country matters? Institutional development and foreign affiliate performance. Strategic Management Journal, 29(11), 1179–1205.
15.
Chen, J., & Dimou, I.2005). Expansion strategy of international hotel firms. Journal of Business Research, 58(12), 1730–1740.
16.
Chen, L., & Fang, F.2008 . Economy hotel trends in mainland China. Retrieved from http://www.hvs.com/article/3119/economy-hotel-development-trends-in-mainland-china/ (accessed in March 2010)
17.
Chen, S.F.S., & Hennart, J.F.2002). Japanese investors’ choice of joint venture versus wholly-owned subsidiaries in the US: The Role of market barriers and firm capabilities. Journal of International Business Studies, 33(1), 1–18.
18.
Child, J., & Yan, Y.N.2003). Predicting the performance of international joint ventures: An investigation in China. Journal of Management Studies, 40(2), 283–320.
19.
Chowdhury, J.1992). Performance of international joint ventures and wholly owned foreign subsidiaries: A comparative perspective. Management International Review, 32(2), 115–133.
20.
Cohen, W.M., & Levinthal, D.A.1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.
21.
Contractor, F.J., & Kundu, S.K.1998). Modal choice in a world of alliances: Analyzing organizational forms in the international hotel sector. Journal of International Business Studies, 29(2), 325–358.
22.
Delios, A., & Beamish, P.W.1999). Ownership strategy of Japanese firms: Transactional, institutional, and experience influence. Strategic Management Journal, 20(10), 915–933.
23.
Demirbag, M., Tatoglu, E., & Glaister, K.W.2007). Factors influencing perceptions of performance: The case of Western FDI in an emerging market. International Business Review, 16(3), 310–336.
24.
Demirbag, M., Tatoglu, E., & Glaister, K.W.2008). Factors affecting perceptions of the choice between acquisition and greenfield entry: The case of Western FDI in an emerging market. Management International Review, 48(1), 5–38.
25.
DiMaggio, P.J., & Powell, W.W.1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.
26.
Dunning, J.H.1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1), 1–31.
27.
Eisenhardt, K.M.1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.
28.
Ekeledo, I., & Sivakumar, K.2004). International market entry mode strategies of manufacturing firms and service firms. Management International Review, 21(1), 68–101.
29.
Erramilli, M.K.1991). The experience factor in foreign market entry behaviour of service firms. Journal of International Business Studies, 22(3), 479–501.
30.
Erramilli, M.K., & Rao, C.P.1993). Service firms international entry-mode choice: A modified transaction-cost analysis approach. The Journal of Marketing, 57(3), 19–38.
31.
Fladmoe-Linbdquist, K., & Jacque, L.1995). Control modes in international service operations: The propensity to franchise. Management Science, 40(7), 1238–1249.
32.
Gaur, A., & Lu, J.2007). Ownership sdtrategies and survival of foreign subsidiaries: Impacts of institutional distance and experience. Journal of Management, 33(1), 84–110.
33.
Geyskens, I., Steenkamp, J., & Kumar, N.2006). Make, buy, or ally: A transaction cost theory meta-analysis. Academy of Management Journal, 49(3), 519–543.
34.
Gielens, K., & Dekimpe, M.2001 . Do international entry decisions of retail chains matter in the long run?International Journal of Research in Marketing, 18(3), 235–259.
35.
Glaister, K.W., & Buckley, P.J.1999). Performance relationships in UK international alliances. Management International Review, 39(2), 123–147.
36.
Greenwood, R., & Hinings, C.R.1993). Understanding strategic change—The contribution of archetypes. Academy of Management Journal, 36(5), 1052–1081.
37.
Herrmann, P., & Datta, D.K.2002). CEO successor characteristics and the choice of foreign market entry mode: An empirical study. Journal of International Business Studies, 33(3), 551–569.
38.
Hoffmann, V.H., Trautmann, T., & Hamprecht, J.2009). Regulatory uncertainty: A reason to postpone investments? Not necessarily. Journal of Management Studies, 46(7), 1227–1253.
39.
Hu, M.Y., & Chen, H.Y.1994). Foreign ownership in Chinese joint ventures: A transaction cost analysis. Journal of Business Research, 26(2), 149–160.
40.
Huang, Y., & Sternquist, B.2007). Retailers’ foreign market entry decisions: An institutional perspective. International Business Review, 16(5), 613–629.
41.
Hult, G.T., Ketchen, D.J., Griffith, D.A., Chabowski, B.R., Hamman, M.K., Dykes, B. J., Pollitte, W.A., & Cavusgil, S.T.2008 . An assessment of the measurement of performance in international business research. Journal of International Business Studies, 39, 1064–1080.
42.
Jung, J.2004). Acquistions or joint ventures: Foreign market entry strategy of US advertising agencies. The Journal of Media Economics, 17(1), 35–50.
43.
Kim, Y., & Gray, S.2008). The impact of entry mode choice on foreign affiliate performance: The case of foreign MNEs in South Korea. Management International Review, 48(2), 165–188.
Li, Y., & Peng, M.W.2008). Developing theory from strategic management research in China. Asia Pacific Journal of Management, 25(3), 563–572.
46.
Lu, J., & Beamish, P.W.2001). The internationalization and performance of SMEs. Strategic Management Journal, 22(6), 565–586.
47.
Lukas, B., Tan, J.J. & Hult, G.T.2001). Strategic fit in transitional economies: The case of China’s electronic industry. Journal of Management, 27(4), 409–429.
48.
Luo, Y.D.2003). Market-seeking MNEs in an emerging market: How parent-subsidiary links shapes overseas success. Journal of International Business Studies, 34(3), 290–309.
49.
Nakos, G., & Brouthers, K.D.2002). Entry mode choice of SMEs in central and eastern Europe. Entrepreneurship Theory and Practice, 27(1), 47–64.
50.
Nielsen, B.2007). Determining international strategic alliance performance: A multidimensional approach. International Business Review, 16(2), 337–361.
51.
North, D.C.1990 . Institutions, institutional change and economic performance. Cambridge, UK: Cambridge University Press.
52.
Pan, Y.G., Li, S.M., & Tse, D.1999). The impact of order and mode of market entry on profitability and market share. Journal of International Business Studies, 30(1), 81–103.
53.
Peng, M.W.2001). The resource-based view and international business. Journal of Management, 27(6), 803–829.
54.
Peng, M.W.2006 . Global strategy. Cincinnati: Thomson South-Western.
55.
Puck, J., Holtbrugge, D., & Mohr, A.2009). Beyond entry mode choice: Explaining the conversion of joint venture into wholly owned subsidiaries in the People’s Republic of China. Journal of International Business Studies, 40(1), 388–404.
56.
Quer, D., Claver, E., & Andeu, R.2007). Foreign market entry mode in the hotel industry: The impact of country- and firm- specific factors. International Business Review, 16(3), 362–376.
57.
Rasheed, H.2005). Foreign entry mode and performance: The moderating effects of environment. Journal of Small Business Management, 43(1), 41–54.
58.
Rhee, J.2008). International expansion strategies of Korean venture firms: Entry mode choice and performance. Asian Business & Management, 7(1), 95–114.
59.
Scott, W.R.1995 . Institutions and organizations. Thousand Oaks, CA: SAGE.
60.
Shaver, J.M.1998 . Do foreign owned and U.S. establishments exhibit the same location pattern in US manufacturing industries?Journal of International Business Studies, 29(3), 469–492.
61.
Slangen, A., & Hennart, J.2008). Do foreign greenfields outperform foreign acquisitions or vice versa? An institutional perspective. Journal of Management Studies, 45(7), 1301–1328.
62.
Taylor, C.R., Zou, S., & Osland, G.E.1998). A transaction cost perspective on foreign market entry strategies of U.S. and Japanese firms. Thunderbird International Business Review, 40(4), 389–412.
63.
Werner, S.2002). Recent developments in international management research: A review of 20 top management journals. Journal of Management, 28(3), 277–305.
64.
Williamson, O.E.1985 . The economic institutions of capitalism. New York: Basic Books.
65.
Woodcock, P., Beamish, P., & Makino, S.1994). Ownership-based entry mode strategies and international performance. Journal of International Business Studies, 25(2), 253–273.
66.
Wright, M., Filatotchev, I., Hoskisson, R.E., & Peng, M.W.2005). Strategy research in emerging economies: Challenging the conventional wisdom. Journal of Management Studies, 42(1), 1–33.
67.
Yiu, D., & Makino, S.2002). The choice between joint venture and wholly owned subsidiary: An institutional perspective. Organization Science, 13(6), 667–683.
68.
Zhao, H.X., Luo, Y.D., & Suh, T.2004). Transaction cost determinants and ownership-based entry mode choice: A meta-analysis review. Journal of International Business Studies, 35(6), 524–544.
69.
Zhou, K., Brown, J., Dev, C., & Agarwal, S.2007). The effects of customer and competitor orientations on performance in global markets: A contingency analysis. Journal of International Business Studies, 38(2), 303–319.
