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The aim of this study is to examine the entry mode that retail firms correctly choose when culture is simultaneously considered has a positive effect on firm performance.

This study relies on the two-step analysis originally derived from Heckman and applied into multinational enterprises (MNEs) entry mode by Shaver. To figure out the probability of entry mode in the first step, the paper uses the logit regression that independent variable is four culture dimensions and dependent variable is the entry mode (joint venture vs wholly owned subsidiary). Since the selection bias is relatively reduced by adding lambda calculated in the first step to the second step that verifies the degree of fit, the safety for interpretation of subsequent models is secured.

This study collected 96 entries of top global retail firms and found out the relationship between culturally determined entry mode and firm performance is positively significant. While existing literatures dealing with manufacturing firms' international entries showed that wholly owned subsidiary is favored over joint venture when the cultural distance is high, this study focusing on retail firms in the service sector indicates that those firms are more likely to enter the global market with joint venture. Finally, firms that appropriately understand cultural distance demonstrated higher performance in the target country.

This study focuses on the relationship between culturally determined entry mode and firm performance in the service sector, whereas extant literatures heavily depend on the one in the manufacturing sector. Moreover, the two-step analysis is exquisitely adopted to confirm the hypotheses.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

As an exploratory study, our research aims to investigate what factors would influence choices of foreign market entry mode by system integration (SI) companies. There are two distinct points. First, we specifically focus on a service industry, i.e., SI (System Integration) industry, which has unique features compared with other industries, yet not been studied extensively. Second, we indirectly examine whether forces influencing firms in an advancing country like Korea are different from those in more advanced countries: in this paper we investigate the Korean cases only, since most of the previous studies viewed this issue from the perspective of advanced countries.

The purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry modes service firms opt for, and if this is influenced by systematic differences between types of service industries. A secondary purpose is to test the generalizability of the research findings from manufacturing sector to service sector firms.

Our sample consisted of 140 Swedish service firms. These firms were investigated using a mailed questionnaire survey, and logistic regression analysis was used for testing the hypotheses.

The statistical analysis shows that, in general, soft‐service firms are much more likely than hard service firms to choose a high control entry mode over a low control entry mode. Furthermore, as cultural distance increases, the likelihood of this choice increases even more.

The implications are that while hard service suppliers can learn from the experience of manufacturing firms going abroad, soft services are unique. Given the importance for soft‐service suppliers to interact with their foreign customers, they should opt for a high degree of control over their foreign market entry mode. In future research on foreign market entry mode selection in service firms more attention should be given to social processes that exercise control.

The findings enhance knowledge on foreign market entry by service firms.

The aim of this study is to advance knowledge on family firms' entry mode choices by examining the linkage between target market context, especially in the emerging economies of China and India, and the dominant family firm logic of keeping ownership and control in the family.

We use an exploratory multiple case study analysis approach based on nine German family firms' internationalization endeavors. We use both primary and secondary data.

Traditionally, extant research concludes that family principals prefer foreign direct investments (FDIs) in order to exert maximum control when entering international markets. In contrast, our study finds a clear preference for international joint ventures (IJVs) as an initial entry mode of choice into unfamiliar markets. Our findings propose this decision to be rooted in cultural unfamiliarity and the complexity of the target markets' legal environment. The effect of these two factors is amplified by prior IJVs experiences.

This article offers several original insights. First, we identify the triggers of the paradoxical IJVs’ entry mode choice among family firms and thus explain the motivation for breaking with the dominant family firm logic of maximizing control. Second, we account for factors in China's and India's particular emerging market environments. In the light of family control, the unfamiliarity with these markets triggers the decision to compensate for the high level of uncertainty by engaging in an IJV partnership. Third, our study shows that family firms are indeed willing to share control if it serves the long-term survival of the firm.

The purpose of this paper is to analyse the foreign direct investment (FDI) strategies of manufacturing firms in Ghana using the eclectic model in order to understand how ownership, location and internalization factors impact FDI to developing countries like Ghana.

The authors use a quantitative methodology in order to statistically explore the relationships between dependent and independent variables. The data comes from a sample of 75 multinational enterprises that invested in the manufacturing sector between 1994 and 2008.

The results reveal that large firm size, extensive international experience and large market size lead to the choice of acquisition mode of entry, while high cultural distance, high country risk, high proprietary assets and incentives lead to the choice of greenfield mode in the context of Ghana.

The results imply that the different economic, business and legal (locational) conditions of developing countries create different FDI strategies and paths of companies compared to developed markets.

Policy makers in developing countries should make efforts to improve market size, the institutional and regulatory environment, as well as the availability of human capital in order to attract FDI.

FDI studies have mainly analysed establishment mode strategies of firms in advanced markets. There is an increasing amount of research on FDI in emerging markets but very little on developing countries and African markets. Therefore, this study enables the authors to develop implications for existing theory and generate practical implications for firms and policy makers related to African and developing country markets.

Different theoretical approaches can be used to justify a positive or negative influence of country risk and cultural distance on the resources commitment level assumed in each decision to entering a new country. Before the disparity of results obtained in prior research, this study seeks to provide new empirical evidence about the influence that those two dimensions linked with the target country may exert on entry mode choice.

Based on contingency approach, transaction cost economics, resource dependency perspective, bargaining power theory and organisational capabilities perspective, various alternative hypotheses are developed and tested using a sample of 471 entries performed by Spanish enterprises between 1999 and 2004.

The findings indicate that both dimensions go in the same direction, as both greater target country risk and greater cultural distance reduce the likelihood of using higher‐commitment entry strategies.

The conflicting arguments are discussed which allow are to forecast that, in conditions of country risk or great cultural distance, both low‐ and high‐commitment entry modes can be appropriate.

Focusing on the growing importance of Indian multinational corporations in the past decades, this paper aims to understand how establishment mode decisions in a foreign market can differ depending on a series of factors. Specifically, the authors examine how institutional distance, including cultural distance and political risk, could affect these decisions, and how international acquisition experience could moderate this relationship.

The authors test their hypotheses using data from 114 outward foreign direct investments between 2000 and 2010.

The findings suggest that experience in international acquisitions increases the likelihood of subsequent acquisitions in high-risk and culturally distant countries.

By considering that the country of origin also matters, some differences among emerging-market multinational corporations (MNCs) may arise. Besides, since empirical research focusing on emerging-market MNCs is scarce, more empirical studies are needed to analyze the influence of cultural distance and political risk on some decisions. In the case of India, there are also additional motivations for analyzing those institutional factors. First, since this is a country with significant linkages to Western countries, it is interesting to know if the influence of cultural distance is similar or not. Second, there is a lack of empirical evidence on the relationship between political risk and establishment mode choice in the case of Indian MNCs. To fill this gap, the first aim of this paper is to analyze how cultural distance and political risk affect the establishment mode choice of Indian MNCs. Moreover, recognizing international experience to be an important factor in explaining international expansion, we focus on international experience interactions with sources of uncertainty inherent in the host market.

Despite the importance of the service sector in developed economies and the growth of foreign investments in this sector during the last decade, few studies have undertaken to empirically analyze the factors influencing entry mode choice. The special characteristics of the service sector increase the complexity of the analysis and, thus, traditional explanations of entry mode choice in manufacturing sectors may need to be complemented by other moderating influences. Based on 174 entry decisions of service firms, our results suggest the importance of including strategic variables and the specific nature of services to understand a complex phenomenon, which is not always associated just with efficiency and value-based considerations but also with strategic issues and industry characteristics.

The purpose of this paper is to provide a theory‐based framework that informs a fashion retailer's entry mode choice into a foreign market.

Aspects of transaction cost, bargaining, resource based, and internationalization theories were integrated to develop a conceptual framework for fashion retailers determining the best entry mode to foreign markets. Propositions were developed, which serve as bridge laws, bridging the gap between the theories and the investigation of fashion retailers' entry mode choice. A case study was used to demonstrate applicability of the developed propositions.

Three groups of factors were identified that influence entry mode choice in the fashion retail market: firm‐specific factors of asset specificity, brand equity, financial capacity, and international experience; country‐specific factors of country risk, cultural distance, and government restrictions; and market‐specific factors of market potential and market competition. Nine propositions were generated, positing how each of the factors may influence a fashion retailer's entry mode choice.

The conceptual model and propositions require further empirical investigation. Future research also needs to systematically explore the interactions or trade‐offs between different determinate factors.

A fashion retailer can use the framework and propositions to systematically evaluate the company's case to justify an entry mode decision for a specific foreign market.

This is the first paper to describe the integration of theories to help explain factors affecting fashion retailers' entry mode choice.