RESOURCE AVAILABILITY AND FIRM’S INTERNATIONAL STRATEGY AS KEY DETERMINANTS OF ENTRY MODE CHOICE
Abstract: This study aimed to
focus on the relationship between two main MNE’s strategies that were
multi-domestic and global. The choice of entry that examined not only the basis
of Transaction Cost and Resource Based View but also incorporates a concept of
Integration and Adaptation Cost. Moreover, the study includes an analysis
brownfield investment and presents it as an alternative investment model in
transition/emerging economies. This study examined by multi-domestic and the
global strategy that were majority MNEs. Companies following a multi-domestic
strategy will mostly depend on local firm’s resources, such as local
technology, local brand name, networking, and distribution channels. Their main
purpose is to respond to the local market demands, which can best be achieved
by the local subsidiaries of well-integrated. This study was a purely
conceptual literature review, which is based on a substantial number of
scientific and conceptual articles. This study decided to concentrate on the
relationship between the resources, strategies and entry modes (including
brownfield investment) because this study discovered a large
research/literature gap in this field that very exciting.
Keywords: Entry modes, MNE’s
Strategies, Transaction Cost, Resource Based View, Integration and Adaptation
Cost
Penulis: Joy Elly Tulung
Kode Jurnal: jpmanajemendd170276
