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Unformatted text preview: H3: Finns that have higher ability to develop differentiated products are more likely to choose a sole venture mode in markets that have high investment fisk; on the other hand, firms that are CHOICE OF FOREIGN MARKET ENTRY MODE 9 larger and have higher multinational experience may have a lower probability of choosing asole venture modein such countries. Ownership Advantages and ContractualRisk me main effect of internalization advantage suggested that firms will r h ei n from entering a country if the perceived risk of dissipation of knowledge, risk of deterioration of quality of services, and costs of writing and enforcing contracts areh igh. This is particularly criticalfor f m that have specialized howledge, protection of which must bean important priority [Hill, Hwang and Kim 19901. However, these firms are also interestedin maximizing the economic rents on their knowledgea suggested by the main effect of this (s factor). This creates a decision scenario in which the need for protection of protectionwouldmake willbetradedagainstreturnpotential.Lack sharing...
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This document was uploaded on 03/22/2014.

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