A CONTINGENCY FRAMEWORK FOR THE MODE OF ENTRY DECISION

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 accommodates alternative decision strategies is presented. As a part of the contingency framework, a strategy-ratio nal analytic-used by past researchers and an alternative strategy of d ecision making-cybernetic-are discussed. Each decision strategy has it s 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 merle of entry decision are also provided.