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Article
Determinants of International Equity Entry Mode: An Empirical Analysis
International Journal of Strategic Management
  • Ruth Clarke, Nova Southeastern University
  • Fernando Robles
  • Syed Akhter
  • Marcilio Machado
Document Type
Article
Date
1-1-2008
ISSN or ISBN
1555-2411
Disciplines
Description
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.
Citation Information
Ruth Clarke, Fernando Robles, Syed Akhter and Marcilio Machado. "Determinants of International Equity Entry Mode: An Empirical Analysis" International Journal of Strategic Management (2008)
Available at: http://works.bepress.com/ruth-clarke/54/