Characteristics of national cultures have frequently been claimed to influence the selection of entry modes. This article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry. Two hypotheses are derived which relate culture to entry mode choice, one focusing on the cultural distance between countries, the other on attitudes towards uncertainty avoidance. Using a multinomial logit model and controlling for other effects, the hypotheses are tested by analysing data on 228 entries into the United States market by acquisition, wholly owned greenfield, and joint venture. Empirical support for the effect of national culture on entry choice is found.

/pdf/the-effect-of-national-culture-on-the-choice-of-entry-mode-10bj2vv2pl.pdf

The Effect of National Culture on the Choice of Entry Mode

This article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade, and restates its main tenets. The second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains “a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to MNE activity as well.”

/pdf/the-eclectic-paradigm-of-international-production-a-3rjvhoi2d0.pdf

The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions

This paper compares the perspectives of transaction costs and strategic behavior in explaining the motivation to joint venture. In addition, a theory of joint ventures as an instrument of organizational learning is proposed and developed. Existing studies of joint ventures are examined in light of these theories. Data on the sectoral distribution and stability of joint ventures are presented.

https://www.jstor.org/stable/pdfplus/2486268.pdf

Joint ventures: Theoretical and empirical perspectives

The hypermodern multinational corporation (MNC) is meant to convey the suspicion that some crucial aspects of developments of and in MNCs cannot be grasped by notions in the merely 'modern' schools of thought. The heterarchical MNC covers a particular brand of geocentric company, which differs significantly from a version that is likely to develop more rapidly in immediate future. Ethnocentric, companies are managed by home country people, and with time there is a lot of rotations between headquarter (HQ) and subsidiaries. The control style will vary in accordance with practice in the parent company and parent country. This chapter examines 'hierarchy' as one governance mode in geocentric firms. The heterarchical MNC differs from standard geocentric one both in terms of strategy and in terms of structure. Strategically, the main dividing line is between exploiting competitive advantages derived from a home country base on the one hand, and actively seeking advantages originating in the global spread of the firm on other.

The hypermodern MNC—A heterarchy?

The mechanisms of coordination used by Multinational Corporations (MNCs) are studied, through an exhaustive literature review. A pattern of evolution is found: as time has passed, researchers have concentrated more on subtler and informal mechanisms, abandoning their unidimensional focus on structural issues. It is suggested that the increase in the study of those mechanisms may be due, among other reasons, to the fact that MNCs are indeed making more use of them. That could be explained by changes in the international competitive environment, which force firms to adjust their strategies, requiring ever more multidimensional coordination.

https://papers.ssrn.com/sol3/Delivery.cfm/palgrave_jibs_8490370.pdf?abstractid=1800521&mirid=2

The Evolution of Research on Coordination Mechanisms in Multinational Corporations

The European Multinationals

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The European Multinationals

The threat of Japanese multinationals : how the West can respond