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| Author: | Slangen, A. H. L. |
| Title: | A communication-based theory of the choice between greenfield and acquisition entry |
| Journal: | Journal of Management Studies
2011 : DEC, VOL. 48:8, p. 1699-1726 |
| Index terms: | international business multinational companies subsidiary companies Netherlands information theory business communication |
| Freeterms: | oral communication |
| Language: | eng |
| Abstract: | This article creates a communication-based theory of the choice by multinational enterprises (MNEs) between greenfield and acquisition entry. It claims that MNE parents communicate with their subsidiaries because of knowledge exchange, coordination, monitoring, and socialization. It is hypothesized that verbal communication barriers affect positively on the probability that MNEs choose greenfield over acquisition entry. An analysis of 231 entries by Dutch MNEs into 48 countries supports hypotheses, showing that geographic and linguistic barriers to verbal communication have important roles in MNEs' establishment mode decisions. |
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