HCBE Faculty Articles
Determinants of International Equity Entry Mode: An Empirical Analysis
Document Type
Article
Publication Title
International Journal of Strategic Management
ISSN
1555-2411
Publication Date
1-1-2008
Abstract/Excerpt
This empirical paper tests hypotheses exploring the use of equity investment in international market entry by US-based firms. We first establish the respondents' use of equity or non-equity, and their international presence, and then proceed to test for determinants of investment. Using transaction cost theory and resource base theory we examine the influences of asset specificity, tacitness of strategic resources, country similarity, business similarity, environmental uncertainty and behavioral uncertainty on firm decisions to make equity investments. Six hypotheses are presented and tested on a sample of self-identified firms engaged in international business. The results for the exploratory study are significant for one hypothesis, and discussion follows regarding the lack of confirmation of the theory with this data set.
NSUWorks Citation
Clarke, Ruth; Robles, Fernando; Akhter, Syed; and Machado, Marcilio, "Determinants of International
Equity Entry Mode: An Empirical Analysis" (2008). HCBE Faculty Articles. 552.
https://nsuworks.nova.edu/hcbe_facarticles/552
