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Unformatted text preview: e higher abilityto develop
differentiated productsdo not show preference fora ny specific
entry mode in markets that have high investment risk, failing
to support H3. The coefficients for sole venture and venture
modes in Model 1 are positive (though non-significant) and
may suggest that such firms may have a weak preference for
investment modes, rather than exporting in these markets. H : As hypothesized, firms with higher ability to develop differenti4
ated products show a preference for investment
modes of entry
in m r e s that are perceived to have higher contractual risks.
Note that the main effect contractual r isks suggested a nonof
preference for investment modes, implying that firms place a
premium on retaining control over valuable
assets and skills. H5: Firms appear to prefer the exporting modemarkets that have
high potential, but that are perceived to have high investment
risks, partially supportingH This result implies that iis are
interested in entering such markets, wouldlk to reduce their
risk of investment loss.
DISCUSSION OF RESULTS AND IMPLICATIONS The major objective of t i study was to exami...
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- Summer '14