The choice of entry mode in sequential foreign direct investment

Relatively few studies have examined the importance of an entry's sequentia l position to the choice of foreign entry mode. We use a dynamic model to a nalyze sequential entries into the United States from 1975 to 1992. Our fin dings show that several independent variables which explain a firm's initia l mode of entry do not explain the modes of subsequent entries. These findi ngs underscore the importance of experience in foreign investment, as compa nies learn from early entries and adapt the modes of subsequent ones. Copyr ight (C) 2001 John Wiley & Sons, Ltd.