Choice of entry mode into a foreign market

Abstract

Purpose – The purpose of this paper is to examine the factors that play a decisive role in determining growth strategies implemented by the hotel chains of the Balearic Islands in the Caribbean and Gulf of Mexico.Design/methodology/approach – In line with most research on the choice of entry mode, the dependent variable is a categorical one. Given the nature of the dependent variable, logistic regression (or logit) models were used to verify the hypotheses. Since there were more than two categories involved, a multinomial logit model was applied.Findings – The main findings show that the choice of foreign market entry mode cannot rely solely on host‐specific factors. Moreover, this study facilitates a comparison of the results of this paper and the results of other similar studies of the international hotel industry.Originality/value – This paper offers several contributions. First, it is a new contribution to the understanding of the factors that determine the behavior of hotel chains in their internatio...