Foreing investors' choice of mode of entry: An integrative framework

• Autores: Cristina López Duarte, Esteban García Canal
• Localización: Documentos de trabajo ( Universidad de Oviedo. Facultad de Ciencias Económicas ), Nº. 191, 1999
• Idioma: español
• Enlaces
  • Texto completo
• Resumen

  • When investing abroad, firm s miist choose between either exploiting their firm-specific competencies or combining them with those o f other firms through joint ventures or total or pardal acquisiüons. This paper studies these decisions using insights from Transaction Cost and Knowledge Based Theories o f multinational corporations. Using a sample offoreign direct investments made by Spanish firms, our results show that the two theories are complementaty. The choice o f entry mode is injluenced not only by transaction cost factors, but also by the prior experience and internationalization path o f the foreign investor, as suggested by Knowledge Based Theories.