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Unformatted text preview: grating perspectives from these areas, Dunning [1977,1980,1988]propxed a comprehensive
framework, which stipulated that the choice of an entry mode for a target
j attempted to directly or indirectly use Dunning frameworkin explaining
choice between joint ventureand sole venture[KogutandSingh19881,
licensing and sole venture [Caves 1982; Davidson and McFetridge
extent of foreign direct investment[Cho 1985; Dunning 1980; Kimura 1989;
Sabi 1988; Terpstra andYu 1988; Yu and Ito 19881, andratio of acquisition
to total subsidiaries [Wilson 19801.
While these studies have made substantial contributionso our understanding
of the entry mode behavior
of firms, an important gap in the empirical
literature is the issue of how the inter-relationships among the determinant
factors influence firms’ entry choices.* The importance of examining the
effects of inter-relationships derives from the that they may explain i m
behaviors that cannot be captured by the independent effects of the factors.
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This document was uploaded on 03/22/2014.
- Summer '14