Broadening the Foreign Market Entry Mode Decision: Separating Ownership and Control
Brown, James R.; Dev, Chekitan; Zhou, Kevin Zheng
This paper argues that the ownership and control dimensions of foreign market entry mode choice should be separated, and that foreign market entry mode decisions should be expanded to business activities beyond production and distribution. Empirical results from the global hotel industry indicate that the transferability of the entrant’s competitive advantages, the local market’s absorptive capacity, and the availability of trustworthy local partners differentially affect the ownership and control dimensions of the entry mode decision.
foreign market entry; competitive advantages; ownership; control
Required Publisher Statement: © Palgrave Macmillan . Final version published as: Brown, J. R., Dev, C. S., & Zhou, K. Z. (2003). Broadening the foreign market entry mode decision: Separating ownership and control. Journal of International Business Studies, 34(5), 473-488. Reprinted with permission. All rights reserved.