Managerial risk perceptions of international entry‐mode strategies

Purpose – The primary purpose of this paper is to investigate how opportunity for control and firm capability interact to moderate the amount of risk that managers associate with various international entry‐mode strategies. A secondary goal is to investigate how managers perceive the need to retain control over three core functional areas (marketing, production, and R&D) when making entry‐mode decisions.Design/methodology/approach – A field experiment design was implemented in a sample of US business owner/executives. Using an online data collection method, the study asked a sample of small‐business owners and managers to assess the amount of risk they associated with three modes of entering the Japanese market: non‐ownership (export), equal partnership (50/50 joint‐venture), and sole‐ownership. They were also asked how much control they needed to retain over R&D, production, and marketing for the venture to be successful.Findings – Ownership‐provided control interacts with capability to influence manager...

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