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Dunning's eclectic theory and the smaller firm: The impact of ownership and locational advantages on the choice of entry-modes in the computer software industry

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  • Brouthers, Keith D.
  • Brouthers, Lance Eliot
  • Werner, Steve

Abstract

This paper set out to investigate the entry-mode selection activities of small- and medium-sized service firms. Based on Dunning's eclectic theory (1988, Journal of International Business Studies, Vol. 19, No. 1, pp. 1-31; 1993, Multinational Enterprises and the Global Economy, AddisondashWesley) and previous entry-mode research, the entry-mode selection activities of US computer software firms were examined. The findings tend to indicate that ownership and locational advantages influence the entry-mode choice of small- and medium-sized firms in a manner similar to that of larger firms. Additionally, this study confirms the applicability of the eclectic theory of foreign direct investment to a second sector of the services industry.

Suggested Citation

  • Brouthers, Keith D. & Brouthers, Lance Eliot & Werner, Steve, 1996. "Dunning's eclectic theory and the smaller firm: The impact of ownership and locational advantages on the choice of entry-modes in the computer software industry," International Business Review, Elsevier, vol. 5(4), pages 377-394, August.
    • Handle: RePEc:eee:iburev:v:5:y:1996:i:4:p:377-394
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    References listed on IDEAS

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