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Abstract:
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An enduring characteristic of extant literature on foreign operation modes is its
discrete choice approach, where companies are assumed to choose one among a small
number of distinctive alternatives.
In this paper we use detailed information about the operations of six Norwegian
companies in three key markets (China, UK and USA) as the basis for an exploration
of the extent to which, and how and why, companies combine clearly different foreign
operation modes. We examine their use of foreign operation mode combinations
within given value activities as well as within given countries.
The study reveals that companies tend to combine modes of operation; thereby
producing unique foreign operation mode “packages” for given activities and/or
countries, and that the packages are liable to be modified over time – providing a
potentially important optional path for international expansion.
Our data show considerable variation across cases; ranging from extensive use of
mode combinations to a singular focus on a specific mode of operation. The study
contributes to a refinement of our understanding of the path of internationalisation,
and throws up a number of awkward theoretical questions about the process. |