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30 Years of Research on Entry Mode and Performance Relationship: A Meta-Analytical Review

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An Erratum to this article was published on 21 December 2017

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Abstract

Almost 30 years after Anderson and Gatignon systematically conceptualized various entry modes, the scholarly research on their performance effects has accumulated a large amount of empirical evidence. However, research has progressed in a somewhat fragmented manner where the cumulative impact of entry modes is difficult to discern and the entry-performance relationship still remains a conundrum in IB research. This study consolidates and meta-analyzes the empirical findings reported from 44 independent studies. While the results show an overall significant effect of entry modes on performance, more fine-tuned meta-analyses unravel that the effects of entry modes vary with the performance types and a number of plausible contingencies. Findings are discussed in terms of implications for future research and limitations.

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  • 21 December 2017

    Almost 30 years after Anderson and Gatignon systematically conceptualized various entry modes, the scholarly research on their performance effects has accumulated a large amount of empirical evidence. However, research has progressed in a somewhat fragmented manner where the cumulative impact of entry modes is difficult to discern and the entry-performance relationship still remains a conundrum in IB research.

Notes

  1. For the studies that included more than one type of entry mode, our calculation is based on the direct and paired correlation between a specific entry mode and performance as listed in the correlation table.

  2. According to Hult et al. (2008) classification, financial performance includes: overall profitability (indicated by ratios such as return on investment, return on sales, return on assets, and return on equity), profit margin, earnings per share, stock price, sales growth, growth of foreign sales, and Tobin’s Q. Operating performance includes product–market outcomes (market share, efficiency, new product introduction and innovation, and product/service quality) and internal process outcomes (productivity, employee retention and satisfaction, and cycle time). Overall effectiveness includes: reputation, survival, perceived overall performance, achievement of goals, and perceived overall performance relative to competitors. We treat survival as a separate category as Ren et al. (2009) suggested that venture termination is not the same as other performance measures.

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Authors and Affiliations

  1. Saint Louis University, Saint Louis, USA

    Hongxin Zhao

  2. Hofstra University, Hempstead, USA

    Jieqiong Ma

  3. University of Texas at Tyler, Tyler, USA

    Jie Yang

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  1. Hongxin Zhao
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Correspondence to Hongxin Zhao.

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This research is partially funded by the Summer Research Grant of John Cook School of Business, Saint Louis University.

An erratum to this article is available at https://doi.org/10.1007/s11575-017-0328-9.

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Zhao, H., Ma, J. & Yang, J. 30 Years of Research on Entry Mode and Performance Relationship: A Meta-Analytical Review. Manag Int Rev 57, 653–682 (2017). https://doi.org/10.1007/s11575-017-0314-2

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