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B h2 finns that are smaller andthat have

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Unformatted text preview: H2: Finns that are smaller andthat have lowermultinational experience are more likely to choose a joint venture mode in countries that have a higher perceived market potential. Ownership Advantages and Investment Risk In environments characterized by high investment r isks, the main effect suggested that firms are better off not entering, and exporting rather than investing if they do choose to enter. However, f i i s vary in their capacity to deal with investment r isks depending upon their ownership advantages. Specifically, firms with valuable assets and skills (that are needed in these markets) may be able to bargain with host governments for concessions that r provide them immunity against investment isks m ontiades 19851. If these concessions are not granted, they may be unwilling to enter such markets. Empirical evidence shows that firms that possess a proprietary product or technology have been able to increase their bargaining position over the host government [Lecraw 1984; Vernon 19831. On t h...
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