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Resource Availability And Firm's International Strategy As Key Determinants Of Entry Mode Choice

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  • Tulung, Joy Elly

Abstract

This study aimed to focus on the relationship between two main MNE’s strategies that were multi-domestic and global. The choice of entry that examined not only the basis of Transaction Cost and Resource Based View but also incorporates a concept of Integration and Adaptation Cost. Moreover, the study includes an analysis brownfield investment and presents it as an alternative investment model in transition/emerging economies. This study examined by multi-domestic and the global strategy that were majority MNEs. Companies following a multi-domestic strategy will mostly depend on local firm’s resources, such as local technology, local brand name, networking, and distribution channels. Their main purpose is to respond to the local market demands, which can best be achieved by the local subsidiaries of well-integrated. This study was a purely conceptual literature review, which is based on a substantial number of scientific and conceptual articles. This study decided to concentrate on the relationship between the resources, strategies and entry modes (including brownfield investment) because this study discovered a large research/literature gap in this field that very exciting.

Suggested Citation

  • Tulung, Joy Elly, 2016. "Resource Availability And Firm's International Strategy As Key Determinants Of Entry Mode Choice," MPRA Paper 79905, University Library of Munich, Germany, revised Feb 2017.
    • Handle: RePEc:pra:mprapa:79905
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    File URL: https://mpra.ub.uni-muenchen.de/79905/1/MPRA_paper_79905.pdf
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    References listed on IDEAS

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    1. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    2. Anne-Wil Harzing, 2000. "An Empirical Analysis and Extension of the Bartlett and Ghoshal Typology of Multinational Companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(1), pages 101-120, March.
    3. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    4. Desislava Dikova & Arjen van Witteloostuijn, 2007. "Foreign direct investment mode choice: entry and establishment modes in transition economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 1013-1033, November.
    5. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    6. Klaus E Meyer & Saul Estrin, 2001. "Brownfield Entry in Emerging Markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 575-584, September.
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    Cited by:

    1. Ahsan Pervaiz, 2023. "Internationalization of Traditional and E-Business in Finance: A Comparative Study," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 612-628.

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    More about this item

    Keywords

    entry modes; MNE’s strategies; transaction cost; resource based view; integration; adaptation cost;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G3 - Financial Economics - - Corporate Finance and Governance

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