Thus j h1 firms t hat are largerand that have higher

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Unformatted text preview: Thus: j H1: Firms t hat are largerand that have higher multinational experience, are more likely to choose a sole venture for entry in relatively lower market potential countries. Firms that are smallerandhavelowermultinationalexperience are not expected to have sufficient resources or skills to enter a large number of L 8 JOURNAL OF INTERNATIONAL BUSINESS STUDIES. FIRST QUARTER l99* foreign markets. They therefore can be expected to use a selective strategy and concentrate their efforts in &e more potentid foreign markets. This is because their chances of obtaining higher returns better in such markets. are In addition, resource limitations (includingsize) make them pone toutilize proportionately more joint ventures than industry leadee [Contractor and do Lorange 1988; Fayerweather 1982; Stopford and Wells 19723. Joint venture arrangements allow them to share costs and risks, as well as comp1ement.q' assets and skills with host country partner f m s marrigan 19851. By doing so, a fr is able to reduce the long-term uncertainty at a lower cost than im through pure hierarchical or market approaches [Beamish andanks 19871. B...
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This document was uploaded on 03/22/2014.

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