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Unformatted text preview: rexample, firms that have lowerlevels of ownershipadvantagesare
expected to either not enter foreign markets or use a low-risk entry mode
such as exporting. However, manysuch firms have been observed to enter
foreign countries, especially those that have high market potential, using
joint ventures andlicensingarrangements[Talaga,Chandran
19851. This type of firm behavior can be better explained if the joint effect
of ownership advantagesof the firm and location advantages of the market
is examined. A critical theme that this study pursues is the examination of
a number of such fr behaviors by evaluating the joint impact of a set of
A methodological featureof this study is the use of the survey techniqueto
obtain information on the determinant factors. A n important advantage of
this technique is that it provides direct m a u e ( s compared to proxy
variables used by mostresearchers)of both location and internalization
factors. The direct measuresare obtained by evaluating managerial perceptions about market potential and investment (location advantages), and
costs of writing and enforcing contracts, risk of deterioration in the quality
of services, and risk of dissipation of knowledge (internalization advantages) in a given host country...
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This document was uploaded on 03/22/2014.
- Summer '14