Dynamics of Foreign Operation Modes and their Combinations: Insights for International Strategic Management

HANDBOOK OF RESEARCH IN INTERNATIONAL STRATEGIC MANAGEMENT, Alain Verbeke, Hemant Merchant, Cheltenham, UK, Edward Elgar

41 Pages Posted: 23 Nov 2011

See all articles by Gabriel R.G. Benito

Gabriel R.G. Benito

BI Norwegian Business School

Björn Preuss

Copenhagen Business School

Lawrence S. Welch

University of Melbourne - Melbourne Business School

Date Written: September 19, 2011

Abstract

Thinking strategically about foreign operation modes requires moving beyond making a choice for the initial entry into a country. The rethinking about foreign operation modes and how they are used in international business activity has ushered in consideration of the reality of mode combinations as part of mode strategy. We advance theoretical justification for the use of mode combinations. In general, there are strong arguments as to why companies can gain significant benefits from building mode combinations, but mode combinations are as such no panacea. We have also stressed that there are potential barriers to their adoption, and costs in implementing them. Changing modes or mode combinations is not a frictionless exercise.

Keywords: entry modes, foreign operation modes, internationalization

JEL Classification: F23, L20, M16

Suggested Citation

Garcia Benito, Gabriel Robertstad and Preuss, Björn and Welch, Lawrence S., Dynamics of Foreign Operation Modes and their Combinations: Insights for International Strategic Management (September 19, 2011). HANDBOOK OF RESEARCH IN INTERNATIONAL STRATEGIC MANAGEMENT, Alain Verbeke, Hemant Merchant, Cheltenham, UK, Edward Elgar. Available at SSRN: https://ssrn.com/abstract=1963702

Gabriel Robertstad Garcia Benito (Contact Author)

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

Björn Preuss

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Lawrence S. Welch

University of Melbourne - Melbourne Business School ( email )

200 Leicester Street
Carlton, Victoria 3053 3186
Australia
+ 61 3 9349 8289 (Phone)
+ 61 3 9349 8144 (Fax)

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