The role of endogenous and exogenous risk in FDI entry choices
Abstract
FDI research has presented consistent evidence that firm experience moderates the effect of risk on entry in a new foreign market. This conclusion is contested by recent research. By revisiting the conceptualisation of risk by economists and behaviourists, we show that the proposed learning mechanism only applies to endogenous risk, not exogenous risk. As assessing endogenous risk involves self-evaluation of risk-reducing capability, it is...
Paper Details
Title
The role of endogenous and exogenous risk in FDI entry choices
Published Date
Jan 1, 2020
Journal
Volume
55
Issue
1
Pages
101040 - 101040
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