Recent scholarship suggests that combining insights from real option theory with transaction cost economics may improve decision-making models. In response to this suggestion we develop and test a model of international entry mode choice that draws from both perspectives. Examining samples of...

We introduce the concept of ‘individual action propensity’ to examine the approach of individuals towards solving situations for which they lack knowledge and/or experience about what to do. We focus on a naturally contrasting pair of responses: ‘thinking before acting’ or ‘acting...

In this study, we suggest that disparities between service and manufacturing firms' international entry mode choices can be explained by differences in their reaction to transaction cost based variables and by the influence of risk and trust propensity. We find that: (1) due to the investment...

This study examines the post-formation processes that firms use to create successful international joint ventures (IJVs). Scholars have suggested that IJV performance is dependent on the post-formation processes firms institute to overcome barriers to success created by differences in national...

Although acquisitions are a popular way to enter new markets, empirical evidence tends to indicate few benefits accrue to acquiring firms. This might be the case because firms use acquisitions when they should be employing an alternative mode of expansion. Applying real options theory to this...