Resource-Based Explanation of Entry Mode Choice

Abstract

The development of new and better, theoretically sound and managerially useful, explanations for host country production and marketing modes and export modes have been consistently pursued by entry mode scholars. Consequently, we have a rich diversity of explanations for these modes based upon three different market-based paradigms of the firm. Building upon these approaches and recent advancements in the theory of the firm, we propose a resource-based theoretical platform that not only offers new explanations for the choice of host country production and marketing modes and export modes, but also augments them.