The Effect of Different Structures on Ownership Decisions

It is important that firms try to enhance their competitive advantage by servicing foreign markets in a highly interlinked world in which the playing field is no longer national or regional, but global and business opportunities present themselves from far flung countries with different traditions and market characteristics. Some of the options that are available to a firm for entry into a foreign market include exporting, licensing, joint venture and sole venture, including Greenfield development of business operations. This study presents an examination of the factors that influence entry mode and ownership decisions by firms that are involved in multinational operations.