Theremainder of thepaper is organized into three

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Unformatted text preview: . Theremainder of thepaper is organized into three parts. The first part reviews the relevant literature to develop the hypotheses. The second part details the research setting, the operational measures, data collection, and research method. The last section provides the results and discusses important managerial, theoretical, and public policy implications. LITERATURE REVIEW A ND HYPOTHESES Normative decision theory suggests that the choicea foreign market entry of mode should be based on trade-offs between risks and returns. A firm is 7’. expected Q-G.&~~-SQLQ. highest_.,risk-adJusted ... ..*:.,.. .-.n Investment. However,mode. ..thaLoffers.t heindicates that a firm’s f e s ._..Ca,., .. o behavioral evidence .choices may also be determined by resource availability and need for control ‘---.---.-/-.-.. , [Cespedes 1988; Stopford and Wells 19721. Resource availaltjility refers to the financial and managerial capacity of a firm for serving a particular a foreign market. Control refers to h ’ s need to influence systems, methods, and decisions in that foreign market [Anderson and...
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