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| Author: | Erramilli, M. K. Agarwal, S. Dev, C. S. |
| Title: | Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective |
| Journal: | Journal of International Business Studies
2002 : VOL. 33:2, p. 223-242 |
| Index terms: | CHOICE THEORY ENTRY CONDITIONS ORGANIZATION PERFORMANCE APPRAISAL |
| Language: | eng |
| Abstract: | Many studies have examined the choice between different types of equity and non-equity modes; however, none has focused on the choice between different types of non-equity modes that service-firms employ routinely. This study develops a theoretical framework based on the "organizational capability" perspective to explain the choice between two non-equity modes- franchising and management-service contracts. While previous studies are based on the premise that foreign-market entrants choose a mode-equity or non-equity--that offers them most control given their particular circumstances, the premise of this study is that foreign entrants choose a non-equity mode that, in addition, offers effective transfer of the firm's capabilities to the host-country venture. |
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