Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust*

Volume: 40, Issue: 5, Pages: 1179 - 1204
Published: Jul 1, 2003
Abstract
In this study, we suggest that disparities between service and manufacturing firms’ international entry mode choices can be explained by differences in their reaction to transaction cost based variables and by the influence of risk and trust propensity. We find that: (1) due to the investment intensive nature of manufacturing, environmental uncertainties and risk propensity influence manufacturers’ mode choices; while (2) behavioural...
Paper Details
Title
Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust*
Published Date
Jul 1, 2003
Volume
40
Issue
5
Pages
1179 - 1204
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