COMPARING THE ENTRY MODE STRATEGIES OF LARGE U.S. AND JAPANESE FIRMS, 1987–1993

Abstract

This study examines the pattern of entry mode strategies of large U.S. and Japanese firms in the years 1987 to 1993. By following a total of 972 transactions, we found the country of origin of the investment had the most significant effect on the entry mode strategy. Further analysis indicated that U.S. firms favor acquisitions, followed by joint ventures and startups, whereas Japanese organizations prefer joint ventures to acquisitions and startups. In general, multinational firms from both countries avoid startups. Our findings suggest that governments should encourage U.S. investment if they are seeking capital inflows, but encourage Japanese involvement if they want locals to have greater operational control.

Citation

Mansumitrchai, S., Minor, M.S. and Prasad, S. (1999), "COMPARING THE ENTRY MODE STRATEGIES OF LARGE U.S. AND JAPANESE FIRMS, 1987–1993", International Journal of Commerce and Management, Vol. 9 No. 3/4, pp. 1-18. https://doi.org/10.1108/eb047386