O'Reilly logo

The Emerging Markets of the Middle East by Tim J. Rogmans

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 6

Entry and Operation Modes

Experience builds a firm’s knowledge of a market, and that body of knowledge influences decisions about the level of commitment and the activities that subsequently grow out of them.

—Jan Johanson and Jan-Erik Vahlne, 20091

Together with location choices, decisions on entry and operation mode arrangements are considered to be the most critical in a company’s international expansion strategy. An entry mode refers to the institutional arrangement chosen by a company when entering a market. Entry modes can be classified along a continuum that ranges from low through medium to high levels of equity and control (see Figure 6.1). As the foreign company invests more equity in a given operation, it accepts a greater ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required