Title

International Entry Mode Choice by U.S. and Japanese MNCs: A Cross-cultural Assessment of the Transaction Cost Analysis Framework

Document Type

Article

Publication Date

1998

Publication Title

Thunderbird International Business Review

First Page

359

Last Page

412

DOI

http://dx.doi.org/10.1002/tie.4270400405

Abstract

A large scale survey of top US and Japanese executives is conducted in order to assess the power of transaction cost economics (TCE) in explaining a firm's choice of entry mode (e.g., joint venture vs. full ownership) when it enters a foreign market. Results suggest that several TCE tenets are useful in explaining US firms' choice of entry mode. However, TCE predictions were not supported by the entry mode choices of Japanese firms. Implications of these findings for researchers and managers are discussed.

Rights

Version of record can be found through Wiley.