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
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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- Summer '14
- joint venture, sole venture