Performance of International Joint Ventures and Wholly Owned Foreign Subsidiaries: A Comparative Perspective 1

■ This paper examines the efficacy of two international market entry modes from a comparative perspective: the IJV and the WOS. ■ The IJV and the WOS are competing participation options. The effectiveness of one in relation to the other is, therefore, a critical measure of their relative efficacy. ■ The effectiveness of IJVs and WOSs were evaluated in terms of six criteria: exit rate, longevity, stability of ownership status, integration with the parent system, export sales, and factor usage. ■ It was found that type of ownership is associated with operating characteristics and performance of foreign subsidiaries in a fairly measurable and predictable way.

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