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The interaction effects are evaluated using results both logistic regression
(Table 2) and cross-tabulation results (Table 3). The regression estimates
provide information on the significanceof the high/high and lowflow combinations of the interacting variables, while the cross-tabulations examine
the sigmficance of the h i m o w and lowhgh combinations of the interacting
variables. The resultsare presented for each hypothesis separately. H1: Table 3 shows that larger and more multinational firms have
a higher propensity to choose sole venture and joint venture
modes, and a lower propensityfor no involvementinlow
potential countries,supposing H .This confinns our expectation
that such f m may be guided moreby strategic considerations
than by c-t-benefit trade-offs in such markets. H2: Table 3 also shows that smaller and less multinational firms
have a higher propensityfor no entry or entry through a joint CHOICE OF FOREIGN MARKET ENTRY MODE 1
9 venture mode in high potential markets, supportingH2. These
f r s are interested in expanding into high potential markets,
resources to do so by themselves.
but do not have the requisite H : Table 2 indicates that f r sthat hav...
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- Summer '14