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Journal of Marketing Vol. 57, No. 3 (Jul., 1993) , pp. 19-38 (20 pages) Published By: Sage Publications, Inc. https://doi.org/10.2307/1251852 https://www.jstor.org/stable/1251852 Read and download Log in through your school or library With a personal account, you can read up to 100 articles each month for free. Get StartedAlready have an account? Log in Monthly Plan
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Abstract Some peculiar characteristics of service firms, such as low capital intensity and the inseparability of production and consumption, have necessitated the modification of the traditional transaction-cost framework used to study entry-mode choice. By relaxing some unduly restrictive assumptions of the conventional transaction-cost analysis (TCA) model, the paper argues that firms prefer to start with full-control modes. It postulates that substantial variation in entry-mode choice occurs when firms that are characterized by low asset specificity relinquish control in response to the rising costs of integration or the diminishing ability to integrate. Several hypotheses on the propensity of service firms to employ shared-control entry modes are developed and tested. The results not only provide insights into entry-mode choice by service firms but also indicate how the transaction-cost framework can be broadened to develop a more comprehensive model for understanding entry-mode choice. Journal Information The Journal of Marketing (JM) develops and disseminates knowledge about real-world marketing questions relevant to scholars, educators, managers, consumers, policy makers and other societal stakeholders. It is the premier outlet for substantive research in marketing. Since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline? Publisher Information Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com Rights & Usage This item is part of a JSTOR Collection. journal article Toward an Eclectic Theory of International Production: Some Empirical TestsJournal of International Business Studies Vol. 11, No. 1 (Spring - Summer, 1980) , pp. 9-31 (23 pages) Published By: Palgrave Macmillan Journals https://www.jstor.org/stable/154142 Read and download Log in through your school or library Abstract This paper first sets out the main features of the eclectic theory of international production and then seeks to evaluate its significance of ownership- and location-specific variables in explaining the industrial pattern and geographical distribution of the sales of U.S. affiliates in fourteen manufacturing industries in seven countries in 1970. Journal Information Journal of International Business Studies (JIBS) is a top-ranked peer-reviewed journal in the field of international business; its goal is to publish insightful, innovative and impactful research on international business. JIBS is multidisciplinary in scope, and interdisciplinary in content and methodology. JIBS is an official publication of the Academy of International Business. JIBS is published 9 times a year. Publisher Information Palgrave Macmillan is a global academic publisher, serving learning and scholarship in higher education and the professional world. We publish textbooks, journals, monographs, professional and reference works in print and online. Our programme focuses on the Humanities, the Social Sciences and Business. As part of the Macmillan Group, we represent an unbroken tradition of 150 years of independent academic publishing, continually reinventing itself for the future. Our goal is to be publisher of choice for all our stakeholders – for authors, customers, business partners, the academic communities we serve and the staff who work for us. We aim to do this by reaching the maximum readership with works of the highest quality. Rights & Usage This item is part of a JSTOR Collection. When a firm maintains its production facilities in its home country and sells its products?An entry strategy in which a firm maintains its production facilities within its home country and transfers its products for sale in foreign markets is known as exporting. Exporting can be defined as the act or process of sending goods and services to a foreign country for sale.
When a firm invests resources in business activities outside its home country giving it control over those activities it is referred to as?foreign direct investment. The main advantage of establishing a greenfield venture in a foreign country is that it: A.
Why would a company choose to use a contractual mode of entry rather than an investment mode?Contractual forms of entry (i.e., licensing and franchising) have lower up-front costs than investment modes do. It's also easier for the company to extricate itself from the situation if the results aren't favorable.
What modes of international business are used by firms that want to globalize?The five most common modes of international-market entry are exporting, licensing, partnering, acquisition, and greenfield venturing.
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When home country production is found to be more desirable than host country production The firm will likely choose?
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