Analysis of the Entry Mode Choice from Both Transaction Costs and Resource Based Theory

Analysis of the Entry Mode Choice from Both Transaction Costs and Resource Based Theory

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Abstract

The liberalization of markets opened doors for expansion and increased the level of competition in numerous markets. This explains that firms are increasingly
diversifying across national borders. This phenomenon is related with the international entrepreneurship, since internationalization is an example of a strategy change that can be defined as an entrepreneurial act. In this context, the scholars in international business have given answers to basically three questions: Why, where, and how do companies internationalize. Since the present research deals with entry modes choice, the focus is clearly on “how.” The choice of entry mode constitutes one of the most critical decisions for international strategy success. This research analyzes the entry mode choice from the perspective of both transaction costs and resource based theory, because these perspectives use different assumptions and consider different assumptions. Given this, I propose 4 propositions related with the study of entry mode choice from the transaction costs and resource based theory.

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Author Biographies / See

Luis Araya - Castillo

PhD en Management Sciences, Doctor en Ciencias de la Gestión y Doctor en Empresa. Investigador. Facultad de Economía y Negocios. Universidad Andrés Bello, Santiago de Chile, Chile.

Nicolás Barrientos Oradini

PhD en Filosofía en Administración de Empresas. Académico e investigador. Universidad Miguel de Cervantes, Santiago de Chile, Chile. E-mail: nbarrientos@umcervantes.cl

Víctor Manuel Yánez - Jara

PhD en Filosofía en Administración de Empresas. Director del Área Académica y Administrativa. Instituto de Salud Pública. Universidad Andrés Bello, Santiago de Chile, Chile

Ángel Acevedo Duque

Postdoctorado en Gerencia Pública y Gobierno, Doctor en Ciencias Gerenciales. Académico e investigador. Facultad de Administración y Negocios. Universidad Autónoma de Chile, Santiago de Chile, Chile

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