Abstract
This paper reviews and critiques the prevalent use of ownership as the only source of control in studies of foreign entry mode decisions. Even a cursory examination of the foreign entry mode literature can reveal the prominence of the construct of control. The prominent role of control is associated with the use of a contingency paradigm. The general theorem of the contingency paradigm is: the fit between the achieved characteristics of entry modes and various situational factors determines the success of the entry mode. Applying this paradigm to entry mode decisions making involves three tasks. Listed in random order, they are: (1) use antecedent factors to predict desired characteristics of entry modes; (2) link entry modes to certain characteristics, or rank entry modes along the characteristics; and (3) link antecedent factors to entry modes. As one can see, the (way of) ranking of entry modes along certain characteristics constitutes a key step in the decision-making process; it thus has a large effect on the outcome of the decision.
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