Transaction Cost and Jstor Terms Essay

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Internationalization and Market Entry Mode: A Review of Theories and Conceptual
Author(s): Otto Andersen
Source: MIR: Management International Review, Vol. 37, Internationalization Processes – New
Perspectives for a Classical Field of International Management (1997), pp. 27-42
Published by: Springer
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Accessed: 20/10/2014 07:40
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mirSpecialIssue1997/2, pp.27-42 ■nil*



© Gabler Verlag1997

Otto Andersen

and MarketEntryMode:
A Review of Theories and Conceptual Frameworks
■ Thispaperreviewsthefollowing ofentrymode:entry conceptualframeworks thetransaction cost approach,theeclectic modeas a chainof establishment, andtheorganizational framework, capabilityframework. ■ Theoretical andweaknessesofthedifferent conandmethodological strengths arediscussed. ceptualframeworks Key Results
■ Futurestudiesonentry toincreasethecongruence between modeshouldattempt and operationallevel,to clarifyconceptsand variablesof the thetheoretical thatconnectthem. andtherelationships frameworks

Otto Andersen,Professorof InternationalBusiness, Agder State College, Kristiansand,Norway.

mirvol. 37 • Special Issue • 1997/2

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Otto Andersen

In thefieldof international business,thequestionof international entrymode seemstohaveattracted threereamostattention There are at least researchers. by sonsforthisgreatinterest: will mode is one of as be outlined First, below,entry thecore components research of theinternationalization concept.Accordingly, on thefirm'sinternationalization processwillto a largeextentincludetheinternationalentry-mode choice.Second,thechoiceof thecorrectentrymodefora market is one of themostcriticaldecisionsforfirmsin interparticular foreign contributions nationalmarketing (Wind/Perlmutter
1977). Third,thetheoretical havebeenmoreadvancedin thearea of foreign entrymodethanin othertopics differofthefirm'sinternationalization identifying process.Severalframeworks entconstructs thatinfluence theentrymodedecisionhave beendevelopedand tested. empirically
The existingliterature has notreachedto an agreement on whichconceptual market framework andconstructs thatshouldbe usedtoexplaina firm'sforeign ofentry modeare mode.Stillnewconceptualframeworks anddeterminants entry Hill etal. (1990) haveemphasizedtheneedfora unifying introduced. conceptual framework withinwhichdifferent factorscan be placed and therelationships theexisting betweenthemanalyzed.To reachthisit is imperative to investigate conceptualframeworks. on
The purposeofthispaperis toreviewsomeoftheconceptualframeworks ofthe increasetheconsciousness market mode.Thiswillhopefully foreign entry develandenrichtofurther andweaknessesofthedifferent frameworks strengths
is and refinement of the mode research. entry paper organizedas folopment lows:First,therelationship betweentheinternationalization…