Abstract
The choice of a foreign firm’s entry mode into a host country is a strategic decision which impacts its future survival and success in other countries. By employing multinomial logit regression, th...
Highlights
The firm’s choice of market entry mode has attracted the growing interest of researchers in the foreign direct investment (FDI) literature and has received considerable attention from academic scholars
We have determined four shared-ownership modes to be compared to the full-ownership mode that is set to the base category
The results of our study prove that an increase in profit margins or current ratios leads to a reduction in the probability of choosing institutional buyouts or mergers over the full acquisitions
Summary
The firm’s choice of market entry mode has attracted the growing interest of researchers in the foreign direct investment (FDI) literature and has received considerable attention from academic scholars. The firm’s entry mode decision is one of the most critical issues for the firm’s future survival and success in overseas countries as each mode involves various degrees of risk, control, return, and strategic commitment. The modes of entry are mainly classified into two groups: non-equity-based and equity-based. Non-equity modes are contractual agreements such as licensing and franchising that provide investors with less control and risk-sharing than equity modes do. Burçak Polat is an assistant professor Dr in the Department of Economics in Antalya International University. She is head of the Economics Department of AIU. She earned her BS and master degree in Business Administration from the Cukurova University and Saint Leo University, respectively. She earned her PhD degree in Economics field from Eastern Mediterranean University
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