Title: Discretion and internationalisation: impact of environmental determinants of managerial discretion and host country experience on entry mode choice

Authors: Dev K. Dutta, Paul W. Beamish

Addresses: Whittemore School of Business and Economics, University of New Hampshire, 15 Academic Way, Durham, NH 03824, USA. ' Richard Ivey School of Business, University of Western Ontario, 1151 Richmond St. North, London, ON N6A 3K7, Canada

Abstract: We examine the impact of the environmental determinants of managerial discretion on the internationalisation of Multinational Enterprises (MNEs) reflected in its choice of mode of entry. Using insights from the behavioural theory of the firm and the process view of internationalisation, we show that a composite measure of the environmental determinants of managerial discretion affects the MNE|s choice of entry mode, with comparatively higher levels of environmental influence leading managers to choose the IJV (over WOS). At the same time, this relationship between the environmental determinants of managerial discretion and entry mode choice is intensified when the MNE has had prior host country experience.

Keywords: environmental determinants; managerial discretion; entry mode selection; host country experience; process view; internationalisation; multinational enterprises; MNEs; market entry; international joint ventures; wholly-owned subsidiaries.

DOI: 10.1504/IJTGM.2009.028993

International Journal of Trade and Global Markets, 2009 Vol.2 No.3/4, pp.267 - 285

Available online: 20 Oct 2009 *

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