Perceived environmental uncertainty, entry mode choice and satisfaction with EC-MNC performance

Previous theoretical and empirical research provides substantial support fo r a contingency approach toward international entry-mode selection. Similar ly, additional empirical research supports the notion that different intern ational ownership-based entry modes tend to be associated with varying perf ormance levels. In this study we provide an initial attempt to use Werner, Brouthers and Brouthers' (1996) multiple measures of Perceived Environmenta l Uncertainty (PEU) to determine the entry mode choices of firms and link t hese risk-adjusted mode choices to managerial satisfaction with firm perfor mance. We hypothesize and find that firms which make PEU risk-adjusted entr y mode choices are significantly more satisfied with their firm's performan ce than firms whose entry mode choices cannot be predicted using multiple P EU risk measures.