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Mitigating risks in internationalization decisions : the choice of the optimal entry mode

Show simple item record Samii, Massood Aliouche, E. Hachemi Wright, Roxana 2011-03-16T18:11:48Z 2011-03-16T18:11:48Z 2008-04
dc.description Version of Record
dc.description.abstract In this paper we propose an innovative prescriptive model for internationalization strategy based on decision analysis theory that allows for optimal decision making regarding the choice under uncertainty between alternative international entry and/or expansion modes. Based on a case study of McDonalds’ expansion in a developed market and in an emerging market, we discuss the decision making implications by emphasizing the inclusion of risk and uncertainty and the importance of sensitivity analysis on the evaluation of the model results. The analysis compares the internationalization choices of franchising and foreign direct investment, as two distinct levels of foreign commitment. The findings suggest that in relatively stable environments it is relatively easier to mitigate the risks through tactics such as cost control, so that a higher level of commitment is justified under favorable macro-environment conditions. In less stable or unfamiliar countries, the risks of day-to-day operation may be too high to be mitigated, such that a lower risk alternative is always optimal, and discrete improvements of the political and economic climate are irrelevant. en_US
dc.format.extent 288000 bytes en_US
dc.language.iso en_US en_US
dc.publisher Southern New Hampshire University en_US
dc.relation.requires Adobe Acrobat Reader en_US
dc.rights Authors retain all ownership rights. Further reproduction in violation of copyright is prohibited en_US
dc.subject.other risk en_US
dc.subject.other internationalization en_US
dc.subject.other franchising en_US
dc.subject.other foreign direct investment en_US
dc.subject.other decision analysis theory en_US
dc.title Mitigating risks in internationalization decisions : the choice of the optimal entry mode en_US
dc.type Conference Paper en_US
dc.description.bibliographicCitation Samii, M., Aliouche, E. H., & Wright, R. (2008). Mitigating risks in internationalization decisions: The choice of the optimal entry mode. Retrieved from en_US
dc.digSpecs PDF/A-1a en_US
dc.format.mediaType application/pdf en_US

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