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

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dc.contributor.authorSamii, Massood
dc.contributor.authorAliouche, E. Hachemi
dc.contributor.authorWright, Roxana
dc.date.accessioned2011-03-16T18:11:48Z
dc.date.available2011-03-16T18:11:48Z
dc.date.issued2008-04
dc.descriptionVersion of Record
dc.description.abstractIn 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.description.bibliographicCitationSamii, M., Aliouche, E. H., & Wright, R. (2008). Mitigating risks in internationalization decisions: The choice of the optimal entry mode. Retrieved from http://academicarchive.snhu.eduen_US
dc.digSpecsPDF/A-1aen_US
dc.format.extent288000 bytesen_US
dc.format.mediaTypeapplication/pdfen_US
dc.identifier.urihttps://hdl.handle.net/10474/1769
dc.language.isoen_USen_US
dc.publisherSouthern New Hampshire Universityen_US
dc.relation.requiresAdobe Acrobat Readeren_US
dc.rightsAuthors retain all ownership rights. Further reproduction in violation of copyright is prohibiteden_US
dc.subject.otherrisken_US
dc.subject.otherinternationalizationen_US
dc.subject.otherfranchisingen_US
dc.subject.otherforeign direct investmenten_US
dc.subject.otherdecision analysis theoryen_US
dc.titleMitigating risks in internationalization decisions : the choice of the optimal entry modeen_US
dc.typeConference Paperen_US

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