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Choice of location and mode: the case of Australian investors in the UK

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  • Edwards, Ronald W.
  • Buckley, Peter J.

Abstract

Internationalising firms must choose what foreign markets they will enter and in what sequence. Once the markets have been identified they must decide how they will service each market. If they choose to establish a business in a particular market they must decide whether to take over an existing firm or to establish a new one, and whether to joint-venture with another firm. This study examines the decision making of Australian manufacturing subsidiaries in the UK. The results reveal that environmental familiarity is important in the choice of location, transportation costs influence entry mode, technological and demand factors determine the choice of acquisition or greenfield entry and a desire for control leads firms to eschew joint-ventures.

Suggested Citation

  • Edwards, Ronald W. & Buckley, Peter J., 1998. "Choice of location and mode: the case of Australian investors in the UK," International Business Review, Elsevier, vol. 7(5), pages 503-520, October.
    • Handle: RePEc:eee:iburev:v:7:y:1998:i:5:p:503-520
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    References listed on IDEAS

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    Cited by:

    1. Jack, Robert & As-Saber, Sharif & Edwards, Ron & Buckley, Peter, 2008. "The role of service embeddedness in the internationalisation process of manufacturing firms," International Business Review, Elsevier, vol. 17(4), pages 442-451, August.
    2. Ellis, Paul D., 2007. "Paths to foreign markets: Does distance to market affect firm internationalisation?," International Business Review, Elsevier, vol. 16(5), pages 573-593, October.
    3. Chung, Henry Fuan-Lin, 2004. "An empirical investigation of immigrant effects: the experience of firms operating in the emerging markets," International Business Review, Elsevier, vol. 13(6), pages 705-728, December.
    4. Marlene Grande & Aurora A. C. Teixeira, 2011. "Linking entry mode choices of MNCs with countries’ corruption. A review," OBEGEF Working Papers 008, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.
    5. Fenwick, Marilyn & Edwards, Ron & Buckley, Peter J., 2003. "Is cultural similarity misleading? The experience of Australian manufacturers in Britain," International Business Review, Elsevier, vol. 12(3), pages 297-309, June.
    6. von Eije, Henk & Wiegerinck, Hélène, 2010. "Shareholders' reactions to announcements of acquisitions of private firms: Do target and bidder markets make a difference?," International Business Review, Elsevier, vol. 19(4), pages 360-377, August.
    7. Lei, Han-Sheng & Chen, Yung-Shuan, 2011. "The right tree for the right bird: Location choice decision of Taiwanese firms' FDI in China and Vietnam," International Business Review, Elsevier, vol. 20(3), pages 338-352, June.
    8. repec:bla:jcmkts:v:46:y:2008:i::p:969-1000 is not listed on IDEAS
    9. Giovanna Magnani & Antonella Zucchella & Dinorà Eliete Floriani, 2015. "Relativity and asymmetry in distance. The role of strategic distance in the internationalization decisions of Brazilian and Italian firms," DEM Working Papers Series 111, University of Pavia, Department of Economics and Management.
    10. Magnani, Giovanna & Zucchella, Antonella & Floriani, Dinorá Eliete, 2018. "The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance," International Business Review, Elsevier, vol. 27(1), pages 1-20.
    11. Youngok Kim & Sidney J Gray, 2017. "Internationalization strategy and the home-regionalization hypothesis: The case of Australian multinational enterprises," Australian Journal of Management, Australian School of Business, vol. 42(4), pages 673-691, November.
    12. Brewer, P., 2001. "International market selection: developing a model from Australian case studies," International Business Review, Elsevier, vol. 10(2), pages 155-174, April.

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