search query: @author Yiu, D. / total: 2
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| Author: | Yiu, D. Makino, S. |
| Title: | The choice between joint venture and wholly owned subsidiary: An institutional perspective |
| Journal: | Organization Science
2002 : NOV/DEC, VOL. 13:6, p. 667-683 |
| Index terms: | Organization theory Joint business ventures Foreign subsidiary companies Multinational companies Asia Japan |
| Language: | eng |
| Abstract: | The study of foreign entry-mode choice has been based almost exclusively on transaction-cost theory. This theory focuses mainly on the impacts of firm- and industry-specific factors on the choice of entry mode, taking the effects of country-specific contextual factors as constant or less important. In contrast, the institutional perspective emphasizes the importance of the influence of both institutional forces embedded in national environments and decision makers' cognitive constraints on the founding conditions of new ventures. This paper provides a unifying theoretical framework to examine this relationship. It synthesizes transaction-cost and institutional perspectives to analyze a sample of 364 Japanese overseas subsidiaries. The results support the notion that institutional theory provides incremental explanatory power of foreign entry-mode choice in addition to transaction-cost theory. |
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