t u r c ia i n4 4 journal of international

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Unformatted text preview: the licensing firm. ~ ? -T -- u** -r* c ia . I__ n.4 - 4 JOURNAL OF INTERNATIONAL BUSINESS STUDIES, FIRST QUARTER 1992 By including firm-specific and market-specific factors that influence these criteria (control, return, risk, and resources), Dunning [1977, 1980, 19881 developed a framework for explaining choice among exporting, licensing, joint venture, and sole venture modes (see Figure 1). A brief description of the main effects of these factors is presented below and is mainly used for validating the results of this study. The main thrust of this research is on o examining the effects f interrelationships among these independent factors. A detailed discussion of these effects is presented in the next section. Ownership Advantages To compete with host countryf m in their own markets, firms must possess superior assets and skills that canearn economic rents that are high enough to counter the higher costof servicing these markets. A firm’s asset power is reflected by its size and multinational experience, and skills by its ability to develop differentiat...
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