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The choice of entry mode in sequential foreign direct investment

Published on Aug 1, 2001in Strategic Management Journal5.572
· DOI :10.1002/smj.168
Sea Jin Chang27
Estimated H-index: 27
(KU: Korea University),
Philip M. Rosenzweig1
Estimated H-index: 1
Sources
Abstract
Relatively few studies have examined the importance of an entry's sequential position to the choice of foreign entry mode. We use a dynamic model to analyze sequential entries into the United States from 1975 to 1992. Our findings show that several independent variables which explain a firm's initial mode of entry do not explain the modes of subsequent entries. These findings underscore the importance of experience in foreign investment, as companies learn from early entries and adapt the modes of subsequent ones. Copyright © 2001 John Wiley & Sons, Ltd.
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