Authors: Ian Wilkinson; Van Nguyen
A contingency theory of entry mode performance is developed based on transaction cost analysis as well as production cost theory and the temporal and embedded nature of exchange relations. This is tested using the results of a nationwide survey of Australian manufacturers export entry modes and, unlike much previous research, correction is made for self selection bias in the sample using the Heckman procedure. The results demonstrate the importance of production as well as transaction cost in determining the most profitable export entry mode and that failing to correct for self selection bias can lead to misleading results and incorrect normative recommendations for management.
Journal: Australasian Marketing Journal (11 (3) – 44-60)
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Publish Year: 2003
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