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The Dilemma Facing Strategic Choice of Entry Mode

While a large body of research has dealt with firm’s choice of ownership mode when entering a foreign market, little attention has been paid to the ex-post performance after initial entry. This article combines the transactional cost economics, Dunning’s OLI paradigm as well as the institutional view as an integrative framework to examine the relationship of firm’s foreign market entry mode choice and performance outcomes. We suggest propositions for empirical study and also consider research implications in relation to these theoretical perspectives as an explanation for firm’s internationalization.