Department of Economics and Business Economics

A Systematic Assessment of Empirical Research on Foreign Entry Mode

Publication: Research - peer-reviewJournal article

DOI

Purpose

Reviews on foreign market entry mode are limited by their methodological approach. The purpose of this paper is to overcome some of these limitations by systematically assessing the empirical support for central relationships in the empirical literature.

Design/methodology/approach

This review provides a systematic assessment of empirical support through a simple quantitative procedure using transparent criteria for article selection. In total, 1217 statistical tests from 119 studies published in 44 different scientific journals in the period 1997-2013 are examined across a range of dimensions.

Findings

Findings question the frequent use of commonly used measures (e.g. advertising intensity) and control variables (e.g. firm size) and suggest that statements about the importance of mode choice for subsidiary performance may be premature. Methodologically, this study identifies critical issues with regard to interpretation of interactions and the entry mode choice set.

Research limitations/implications

This study limits itself to study the direction of relationships and does not analyze effect sizes. Further, future research may benefit from broadening the entry mode choice by extending the use of multiple outcome models as well as implementing the correct interpretational tools when investigating interactions.

Originality/value

The review is relevant to researchers seeking an overview over the research literature or practitioners interested in the link between mode choice and subsidiary performance.

Original languageEnglish
JournalEuropean Journal of Marketing
Volume50
Issue number5/6
Pages (from-to)942-972
Number of pages31
ISSN0309-0566
DOIs
StatePublished - 2016

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