Foreign Operation Mode Combinations and Internationalization
By Bent Petersen, Lawrence Welch. 2002
114 citations recorded by the source corpus.
The standard formula in theoretical and empirical studies of entry mode choice and internationalization processes of firms has been ‘one foreign country, one operation mode’, i.e. a singular mode approach. However, even with fairly broad operation mode definitions it is by no means exceptional to see firms having more than one operation mode in a foreign country. This paper explores the phenomenon of ‘multiple’, ‘mixed’, or ‘combined’ foreign operation modes. Although several occurrences of mode combinations are reported in the IB literature, the phenomenon has not yet been made the subject of direct analysis. The paper introduces a classification of multiple mode appearances based on the degree of interaction between operation modes (which vary considerably). Special attention is paid to ‘mode packages’, i.e. the concerted use of several operation modes in an integrated, complementary way. In a study of Danish MNCs with simultaneous use of subsidiaries and independent local intermediaries it was found that in most cases the two modes are operating in a complementary way. A framework for analyzing the roles within packages is presented and it is argued that the use of ‘mode packages’ may offer the multinational firm scope for improved international market penetration capacity.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/c891c6ecd742eeb7cee665aaa1247ee4dae5eb00
How researchers see this paper
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In Economics and Econometrics
- Torben Pedersen
- Rajneesh Narula
- John A. Cantwell
- Gabriel R. G. Benito
- Bent Petersen
- Virginia Hernández
- Lawrence Welch
- Jens Dick‐Nielsen
In Strategy and Management
- Torben Pedersen
- Rajneesh Narula
- Ram Mudambi
- Gabriel R. G. Benito
- Virginia Hernández
- John A. Cantwell
- Bent Petersen
- Lawrence Welch
Citations in the corpus
- Global Value Chain Configuration: A Review and Research Agenda (2017, background): “Moreover, they have to coordinate governance modes supporting the firm’s objectives (Petersen and Welch, 2002), while at the same time taking into account that each mode of operation requires a different combination of skills (Casillas and Moreno-Menéndez, 2014).”
- Towards more realistic conceptualisations of foreign operation modes (2009, background): “For example, Petersen and Welch (2002) stress that there may be little connection between the multiple modes used by a company in a given country as a result either of geographical or other forms of market segmentation, or of the way a company is orga nised.”
- The Eclectic Paradigm in the Global Economy (2001, background): “It is not unusual for MNCs to use several organisational modes simultaneously in the same location, and with the same partners (Benito and Welch, 1994; Petersen and Welch, 2001).”
- Learning Paths to Offshore Outsourcing - From Cost Reduction to Knowledge Seeking (2007, background): “However, the observations are in general made on a fairly aggregated basis that excludes detection of the fine-grained aspects of offshoring (Petersen and Welch, 2002).”