Full Control Mode Research Articles

How do hotels expand into new markets? The relationship between hotel agglomeration and entry mode

When a hotel decides to open in a new location, it must select a specific entry mode that determines its degree of control and ownership. This study combines agglomeration theory with information economics to explain how hotel agglomerations influence the entry modes of new hotels. In particular, we argue that when facing different levels of information asymmetry derived from hotel agglomerations, new hotels should reduce the risk of adverse selection in choosing their entry modes. Using a sample of new hotels in China, this study shows that in areas of co-located higher-quality hotels, new hotels choose shared-control modes (franchise or management contracts) over full-control modes. Evidence from a sample of foreign hotels also indicates that in areas of co-located same-country-of-origin hotels, new hotels are encouraged to choose shared-control modes (franchise or management contracts) over full-control modes.

The effect of local corruption on ownership strategy in cross-border mergers and acquisitions

This paper focuses on how corruption affects an important internationalization behavior of firms: the extent of control – wholly owned subsidiary or equity participation – exercised by firms involved in cross-border mergers and acquisitions.We analyze individual data on cross-border M&A carried out by firms located in the seven largest European countries, and operating in the 10 SIC divisions. We thus consider 20,034 international M&A deals completed in 137 host countries over the period 2000–2012.We find that the relationship between the level of corruption in the host country and the firm's probability of opting for full control mode in cross-border M&A is U-shaped. Moreover, we add to the literature by demonstrating that industry relatedness between acquirer and target and the level of connectivity between home and host countries moderates the relationship between corruption in the host country and the level of control.

CEO tenure and ownership mode choice of Chinese firms: The moderating roles of managerial discretion

Based on upper echelon theory, this study has explored how CEO tenure affects ownership mode choice of Chinese firms investing abroad, and how some organizational factors, such as firm size, firm age and CEO duality, moderate this relationship. Using secondary data, this study finds CEO tenure has a positive relationship with the choice of full control mode, CEO duality can reinforce this relationship, but firm size and firm age have no significant moderating effect.

Full control modes of a four-wheeled vehicle with zero body-sideslip angle and zero body motions

This study presents how to use the full control concept to achieve zero body-sideslip angle and zero body motions for four-wheeled vehicles. Firstly, the governing equations for a 6 d.o.f. four-wheeled vehicle model, i.e. a vehicle with four wheels, each wheel controlled independently, has been developed. With six properly chosen control inputs, there are 16 full control modes for the zero body-sideslip angle and zero body motions control. The sum of tractive forces, cornering forces, or active suspension forces is set as the criteria for evaluating these full control modes. In typical driving scenarios, these control modes are compared and discussed, and preferable modes are concluded. Also, the difference for full control modes between four-wheeled vehicles and three-wheeled vehicles has been discussed. Finally, this study presents how to apply the full control concept into vehicle cruise control. By using the full control concept, the zero body-sideslip angle and zero body motions of four-wheeled vehicle can be realised, and vehicle cruise control rules with better handling and comfort performance are introduced in this study.

Full control modes of three-wheeled vehicles with zero body sideslip angle and zero body motions

By using the full control concept, zero body sideslip angle and zero body motions can be achieved. In this study, firstly, the governing equations for the six-degree-of-freedom three-wheeled vehicle model, with either two wheels on the front axle or two wheels on the rear axle are developed. With six properly chosen control inputs, there are nine full control modes for the zero body sideslip angle and zero body motion control. The sum of tractive forces, cornering forces or active suspension forces is set as the criterion for evaluating these full control modes. These control modes are compared and discussed for typical driving scenarios, and conclusions are drawn about preferable modes.

Service Firms’ International Entry-Mode Choice: A Modified Transaction-Cost Analysis Approach

Some peculiar characteristics of service firms, such as low capital intensity and the inseparability of production and consumption, have necessitated the modification of the traditional transaction-cost framework used to study entry-mode choice. By relaxing some unduly restrictive assumptions of the conventional transaction-cost analysis (TCA) model, the paper argues that firms prefer to start with full-control modes. It postulates that substantial variation in entry-mode choice occurs when firms that are characterized by low asset specificity relinquish control in response to the rising costs of integration or the diminishing ability to integrate. Several hypotheses on the propensity of service firms to employ shared-control entry modes are developed and tested. The results not only provide insights into entry-mode choice by service firms but also indicate how the transaction-cost framework can be broadened to develop a more comprehensive model for understanding entry-mode choice.