Three Empirical Models for the Choice of Entry Mode in Foreign Direct Investment

1996 ◽  
Author(s):  
Roger Svensson
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Entry Mode ◽  
Empirical Models

Entrepreneurial Logics in International Entry Mode Decisions

2021 ◽  
Vol 10 (2) ◽  
pp. 1-19
Author(s):  
Valentina Macovei ◽  
Birgit Hagen
Keyword(s):  
Decision Making ◽  
Foreign Direct Investment ◽  
Literature Review ◽  
Longitudinal Studies ◽  
Strategic Alliances ◽  
Direct Investment ◽  
Entry Mode ◽  
Entry Modes ◽  
Entry Mode Choice ◽  
External Context

The aim of this paper is, through a two-staged literature review, to identify the role and impact of causation, effectuation, and bricolage logics during internationalization and, in particular, in entry-mode choice. The results show that entrepreneurs in their internationalization decisions can follow one, a combination, or a sequence of logics depending on the venture's or its international lifecycle and experience, the (perceptions of) internal and external context, and network relations. Likewise, entry modes such as JVs, strategic alliances, and export can be driven by different logics or their combination, while foreign direct investment is predominantly driven by causation logic. Bricolage has received little attention in extant work and, thus, is a future avenue for research. Research, although growing in importance, falls short of longitudinal studies, which are necessary to identify shifts, and, importantly, performance consequences of different decision-making logics.

Choice of market entry mode in China: the influence of firm-specific factors

2005 ◽  
Vol 30 (3) ◽  
pp. 51-70 ◽  
Author(s):  
Enrique Claver ◽  
Diego Quer
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Entry Mode ◽  
Traditional Theory ◽  
International Expansion ◽  
Resource Based View ◽  
Mode Of Entry ◽  
The World ◽  
Specific Factors ◽  
Investment In China

One of the issues attracting wider attention within research into corporate internationalisation is the choice of mode of entry into a foreign country. At present, China is one of the destinations which is acquiring greater importance in the international expansion of firms from various countries around the world. In this context, by combining the traditional theory on foreign direct investment with the resource-based view of the firm, this paper will analyse the influence of various tangible and intangible corporate factors on the degree of commitment towards direct investment in China.

Foreign direct investment and the environment: disentangling the impact of greenfield investment and merger and acquisition sales

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayesha Ashraf ◽  
Nadia Doytch ◽  
Merih Uctum
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Entry Mode ◽  
Halo Effect ◽  
Empirical Literature ◽  
Content Type ◽  
Developed Economies ◽  
Mode Of Entry ◽  
Transport Industry

Purpose This study aims to examine the effect of greenfield foreign direct investment (GFDI) and mergers and acquisitions (M&A) on the environment and more specifically, on the sectoral emissions of CO2. The authors identify significant differential and income effects with various data classifications of foreign direct investment (FDI) mode of entry. Design/methodology/approach The authors use system generalized method of moments with instruments for income and GFDI and M&A, which allows us to control for present reverse causality and endogeneity of income and the two modes of FDI. Findings Evidence from the full sample reveals that GFDI increases pollution, supporting the pollution haven hypothesis, while M&As decrease pollution in line with the halo effect hypothesis. GFDI flowing into poorer countries worsens the environment, while M&As flowing to industrialized economies reduce pollution. Entry-mode effects are also present at the level of industry emissions. GFDI in developed economies decreases pollution in transport industry but increases it in poorer countries. Practical implications The authors demonstrate: first, a recipient country level-of-development effect: GFDI investment flowing into poorer countries has harmful effects on environment, but no significant effect in rich economies, while M&As flowing to industrialized economies have a beneficial effect to the environment, supporting the halo hypothesis. Second, the authors demonstrate a differential entry-mode effect at the industry level: GFDI in developed economies decreases pollution from transport industry, while both modes of entry in developing economies increase it. Social implications M&As emerge as a type of FDI that is less harmful to the environment. This is especially true in the case of developed economies. However, policymakers should oversee strictly the inbound GFDI flows and determine whether they carry “dirty” or “clean” production processes. This is the type of FDI to be regulated and scrutinized to ensure that economic development is fostered alongside environmental conservation. Originality/value In existing theoretical and empirical literature, little guidance is available on which mode of entry would have greater effect on the environment of the host country. This paper answers this issue by disaggregating FDI flows into GFDI and M&As and examining how each mode of entry impacts pollution in host countries. To the best of the knowledge, this is the first study that analyzes the environmental impact of the two modes of entry of FDI while disentangling the environmental Kuznets curve effect from the halo effect.

Qualitative analysis for joint ventures as an entry mode in foreign direct investment

2021 ◽  
Vol 123 ◽  
pp. 324-332
Author(s):  
Vicent Almenar-Llongo ◽  
Javier Muñoz de Prat ◽  
Maria Orero-Blat
Keyword(s):  
Foreign Direct Investment ◽  
Qualitative Analysis ◽  
Joint Ventures ◽  
Direct Investment ◽  
Entry Mode
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