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Perceived Environmental Uncertainty, Entry Mode Choice and Satisfaction with EC‐MNC Performance
Author(s) -
Brouthers Lance Eliot,
Brouthers Keith D.,
Werner Steve
Publication year - 2000
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/1467-8551.00160
Subject(s) - contingency , mode (computer interface) , mode choice , business , empirical research , microeconomics , marketing , economics , computer science , statistics , mathematics , public transport , philosophy , linguistics , political science , law , operating system
Previous theoretical and empirical research provides substantial support for a contingency approach toward international entry‐mode selection. Similarly, additional empirical research supports the notion that different international ownership‐based entry modes tend to be associated with varying performance levels. In this study we provide an initial attempt to use Werner, Brouthers and Brouthers' (1996) multiple measures of Perceived Environmental Uncertainty (PEU) to determine the entry mode choices of firms and link these risk‐adjusted mode choices to managerial satisfaction with firm performance. We hypothesize and find that firms which make PEU risk‐adjusted entry mode choices are significantly more satisfied with their firm's performance than firms whose entry mode choices cannot be predicted using multiple PEU risk measures.