A contingency framework for the mode of entry decision

Abstract

The extant literature on the choice of entry modes into international markets has assumed that the mode of entry is a single stage rational analytic decision by the manager. A contingency framework for the mode of entry decision which accomodates alternative decision strategies is presented. As part of the contingency framework, a strategy—rational analytic—used by past researchers and an alternative strategy of decision making—cybernetic—are discussed. Each decision strategy has its own merits and disadvantages. An outcome of the cybernetic strategy is an hierarchical model for the mode of entry decision. Implications of the alternative strategies for the mode of entry decision are also provided.