A conceptual framework of the entry mode choices' determinants: the ownership-location-internalisation approach
by Sujinda Chemsripong
International Journal of Economics and Business Research (IJEBR), Vol. 25, No. 3, 2023

Abstract: Entering the international market is a crucial strategy for foreign direct investment. Different market entry models such as exports, licensees, franchises, complete management, affiliated companies, and venture capital will affect investments in terms of risk, return, and corporate governance for a successful international business. This research aimed to study the key factors influencing the decision to choose a model and the expected returns using a crucial concept of ownership advantage, location advantage, and internalisation advantage (OLI) advantage to describe international entry patterns. This paper used the multinomial logistic regression model and categorical regression to estimate regression model in hypothetical tests, utilising data from 125 Thai companies that invested in Cambodia, Laos, Myanmar, and Vietnam. Based on Thailand's investment model and their international relationship, this paper will focus on the conceptual framework variables such as firm size, international experience, and the ability to develop differentiated products, market potential, investment risk, and contractual risk.

Online publication date: Tue, 04-Apr-2023

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