This preview shows page 1. Sign up to view the full content.
Unformatted text preview: the
situation at hand. Finally, one has to acknowledge that individual loci of control may change,
as a result of some critical events or, more gradually, as the relevant experience grows.
Management risk attitudes
The level to which the company will accept various international business risks depends on
the context according to Koch (2001): the company’s financial situation, its strategic options,
the competitiveness of its competitive environment, its relevant experience etc. Risks may be
estimated by using appropriate formulae. One should, however, bear in mind that the
perception of risks associated with individual market entry modes or countries may influence
companies’ decisions considerably, as well. The less risk-averse the management, the more
8 LITERATURE REVIEW
likely it is for the company to select countries that show greater long-term prospects and
promise to enhance the firm’s capabilities.
Market share targets
When criterion used in market entry mode selection is sales or market share maximization,
market entry modes, which are believed to be most likely to deliver the desirable results
View Full Document
This document was uploaded on 03/22/2014.
- Summer '14
- The Land