Foreign market entry through equity investment has been extensively studied and various theoretical lenses have been used. Most previous research also focuses attention on either the entry mode selection decision or the topic of post-entry performance, but rarely both. We build on existing research by developing a model of foreign market entry and post-entry performance that uses network theory and organizational ecology to provide a fuller explanation of this complex and critical multinational enterprise strategic behaviour. Four pairs of total eight propositions were developed and justified based on extent literature and sound logical reasoning. By focusing on both entry mode choice and the post-entry performance implications of these choices, we cover both sides of the logic of profit as a function of both costs and revenues. Finally, potential managerial implications are discussed at the end.
Tang, J., & Liu, B. S. (2011). A network based theory of foreign market entry mode and post-entry performance. International Journal of Business and Social Science, 2(23 Special Issue), 50-59.