4 0

Going Past Entry Mode: Examining Foreign Operation Mode Changes at the Strategic Business Unit Level 6 6 - - - - - - - - . - . - 0 . - . - 0 .

ABSTRACT: The extant literature on MNEs' operations mode concerned with the question of whether MNEs have adopted appropriate modes of entry in host countries. Inquiry into MNEs motives to retain or to change their mode of operations has been limited. Utilizing the literature on institutional theory and strategic rationale for internationalization, the following question is addressed in this paper; What are the factors that inform foreign operations mode (FOM) change or continuation? In order to gain a better understanding of FOM decisions, the foreign operations of four strategic business units (SBU) of a MNE in China are examined. Evidence from the case study presented indicates that (!) the retention of the joint venture (JV) mode is likely influenced by external isomorphic factors, market-seeking strategic intent, and a concentrated industry structure; and (2) mode conversion from from JV to wholly owned subsidiary (WOS) is likely influenced by internal isomorphic factors, efficiency-seeking strategic intent, and a fragmented industry structure.





5

















5







2 = =









2




2 --0------


6 --0-- 2 --------



0 2 --


--20------





FOREIGN OPERATION MODE ----------


--------20--


----2

/ 2

/ 2

/

/