Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective View Full Text


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Article Info

DATE

2002-06

AUTHORS

M. Krishna Erramilli, Sanjeev Agarwal, Chekitan S. Dev

ABSTRACT

Many studies have examined the choice between different types of equity and non-equity modes; however, none has focused on the choice between different types of non-equity modes that service firms employ routinely. This study develops a theoretical framework based on the “organizational capability” perspective to explain the choice between two non-equity modes— franchising and management-service contracts. While previous studies are based on the premise that foreign market entrants choose a mode—equity or non-equity—that offers them most control given their particular circumstances, the premise of this study is that foreign entrants choose a non-equity mode that, in addition, offers effective transfer of the firm's capabilities to the host-country venture. More... »

PAGES

223-242

Identifiers

URI

http://scigraph.springernature.com/pub.10.1057/palgrave.jibs.8491014

DOI

http://dx.doi.org/10.1057/palgrave.jibs.8491014

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1016723156


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