Foreign direct investment as an entry mode. An application in emerging economies

This dissertation examines the determinants of foreign investment entry modes in Central and Eastern Europe during transition. Utilizing various theoretical bases in industrial organization and strategy, it attempts to distill a better understanding of the ownership choice between joint ventures and wholly owned subsidiaries and the establishment mode choice between acquisitions and green-field investments. In deciding about foreign entry mode, several factors at firm, industry and host country level need to be taken into account. The analysis reveals the crucial role played by technology and sales assets, international and operational experience, uncertainty and global strategic motivations in determining the complex entry mode decision. The dissertation also includes four case studies that focus on the foreign investment decision process. Overall, the study represents an effort towards the larger objective of contributing to a more holistic understanding of the discriminatory forces that drive foreign entry mode.