OWNERSHIP-BASED ENTRY MODE STRATEGIES AND INTERNATIONAL PERFORMANCE

This study examines the relationship between ownership entry modes and performance. The ownership entry modes examined are the wholly owned modes of acquisition and new venture entry, and the non-wholly owned m ode of joint venture entry. A theoretical relationship is developed fo r international entry modes that is based on the contingency character istics of resource requirements and organizational control factors. Th is model suggests that different entry modes have different performanc e outcomes based upon their resource and organizational control demand s. The theoretical model, although developed using the eclectic theore tical approach, is based largely on concepts and relationships previou sly delineated in contingency theory. Our hypotheses suggest that new ventures should outperform joint ventures, and joint ventures should o utperform acquisitions. An empirical test using a sample of 321 Japane se firms entering the North American market provides supporting eviden ce.