TY - JOUR
T1 - Strategic orientation and the choice of foreign market entry mode
T2 - An empirical examination
AU - Liang, Xin
AU - Musteen, Martina
AU - Datta, Deepak K.
PY - 2009
Y1 - 2009
N2 - Drawing on the transaction costs, strategic capability and the strategic cognition perspectives, our study seeks to examine whether and how firms' strategic orientations at the business level influence the entry mode choices that firms make in accessing foreign markets. The study uses a sample of 332 foreign market entries made by 62 U.S. based firms over a period of 6 years to test hypotheses linking firm business level strategy to the choice of foreign entry modes. Findings indicate that Prospectors are more likely to choose equity-based foreign market entry modes than Defenders. In addition, Prospectors favor full-ownership entry modes, namely, greenfield investments and full acquisitions, over shared-ownership modes such asjoint ventures and partial acquisitions.
AB - Drawing on the transaction costs, strategic capability and the strategic cognition perspectives, our study seeks to examine whether and how firms' strategic orientations at the business level influence the entry mode choices that firms make in accessing foreign markets. The study uses a sample of 332 foreign market entries made by 62 U.S. based firms over a period of 6 years to test hypotheses linking firm business level strategy to the choice of foreign entry modes. Findings indicate that Prospectors are more likely to choose equity-based foreign market entry modes than Defenders. In addition, Prospectors favor full-ownership entry modes, namely, greenfield investments and full acquisitions, over shared-ownership modes such asjoint ventures and partial acquisitions.
KW - Defenders
KW - Entry mode
KW - Foreign market penetration
KW - Prospectors
KW - Strategic orientation
UR - http://www.scopus.com/inward/record.url?scp=70449502843&partnerID=8YFLogxK
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U2 - 10.1007/s11575-009-0143-z
DO - 10.1007/s11575-009-0143-z
M3 - Article
AN - SCOPUS:70449502843
SN - 0938-8249
VL - 49
SP - 269
EP - 290
JO - Management International Review
JF - Management International Review
IS - 3
ER -