Abstract
This study examines the relationship between ownership entry modes and performance. The ownership entry modes examined are the wholly owned modes of acquisition and new venture entry, and the non-wholly owned mode of joint venture entry. A theoretical relationship is developed for international entry modes that is based on the contingency characteristics of resource requirements and organizational control factors. This model suggests that different entry modes have different performance outcomes based upon their resource and organizational control demands. The theoretical model, although developed using the eclectic theoretical approach, is based largely on concepts and relationships previously delineated in contingency theory. Our hypotheses suggest that new ventures should outperform joint ventures, and joint ventures should outperform acquisitions. An empirical test using a sample of 321 Japanese firms entering the North American market provides supporting evidence.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Author information
Authors and Affiliations
Additional information
*C. Patrick Woodcock is a doctoral student at the Western Business School, University of Western Ontario. His research has focused on international joint venture and wholly owned entry mode strategies.
**Paul W. Beamish is an Associate Professor at the Western Business School, University of Western Ontario.
***S. Makino is a doctoral student at the Western Business School, University of Western Ontario. His research has focused on international joint ventures and other strategic alliances.
Rights and permissions
About this article
Cite this article
Woodcock, C., Beamish, P. & Makino, S. Ownership-Based Entry Mode Strategies and International Performance. J Int Bus Stud 25, 253–273 (1994). https://doi.org/10.1057/palgrave.jibs.8490200
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/palgrave.jibs.8490200