How should multinational enterprises (MNEs) select international markets? We develop a model of international market selection that adds firm-specific advantages and transaction cost considerations to previously explored target market factors based on Dunning's Eclectic Framework. Results...

Porter (1990) proposed that the competitive advantage of nations comes from a set of six factors, termed the Home-Diamond. However, there have been a number of criticisms of this model. It has been suggested that, at least for small countries, competitive advantage may be derived from a...

In this study, we examine the influence of three country-specific strategies (market-seeking, client-following and resource-seeking) on new venture formation decisions for firms entering Central and East Europe. We found that market-seeking and resource-seeking strategies tend to influence...

This paper set out to investigate the entry-mode selection activities of small- and medium-sized service firms. Based on Dunning's eclectic theory (1988, Journal of International Business Studies, Vol. 19, No. 1, pp. 1-31; 1993, Multinational Enterprises and the Global Economy, AddisondashWesley)...

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...

Improving alliance performance is a critical issue that both managers and researchers have attempted to resolve. Recently scholars have suggested that firms can use alliance commitment and process controls to improve alliance performance. Yet research has only found weak support for these direct...

How should multinational enterprises (MNEs) select international markets? We develop a model of international market selection that adds firm-specific advantages and transaction cost considerations to previously explored target market factors based on Dunning's Eclectic Framework. Results...

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...