Multinational Enterprises’ Entry Mode Strategies in Syria and Jordan: The Impact of Ownership Advantages

Abstract

This study addresses the issue of ownership advantages affecting multinational enterprises' (MNEs

Market entry strategies in the Middle East: unveiling the sponsorship strategy

“…Behavioral uncertainty related to the opportunistic behavior of transacting parties. As discussed above, behavioral transaction cost factors include the cost of finding a local partner, negotiating, and monitoring (Al-Habash et al 2015). In the presence of high behavioral uncertainties, foreign firms tend to adopt high-control modes such as wholly owned subsidiary over low-control modes such as a joint venture.…”

“…In Syria and Jordan, the high importance of a corporate governance has a strong positive relationship to choosing wholly owned subsidiaries, since the MNC will have a high international background that increases its competitive advantage, which in return decreases transactional costs (Al-Habash et al, 2015).…”

“…In the context of Syria and Jordan, the higher the level of intangible assets of a MNC, the more likely it was to choose wholly owned subsidiary over a joint venture. (Al-Habash et al, 2015).…”

“… The criticism received was mainly doubting the validity of the model since it appeared too deterministic, which does not account for the variability in decision making and the availability of strategic choices top managers have (Andersson, 2000).  The development is clearly challenged because organisations may well opt to omit stages in the aim of accelerating the process (Schellenberg et al, 2018) In the Syrian and Jordanian context, the higher the importance of a corporate governance, the more likely for firms to choose wholly owned subsidiaries since the MNC will have a high international background that increases its competitive advantage and position (Al-Habash et al, 2015).…”

Do Strategic Motives Affect Ownership Mode of Foreign Direct Investments (FDIs) in Emerging African Markets? Evidence from Ghana

“…Research on African business is still limited in all areas of international business, and many studies have called for more empirical research to test existing theories and develop knowledge and implications that are relevant to the African and emerging‐market context (Dadzie & Owusu, ). There are few studies on strategic motives of FDI to Africa (e.g., Bartels, Alladina, & Lederer, ; Claasen, Loots, & Bezuidenhout, ; Luiz & Charalambous, ), and ownership mode (e.g., Al‐Habash, Mmieh, & Cleeve, ; Chiao, Lo, & Yu, ; Demirbag & Weir, ). We have not found any studies on the link between strategic motives and ownership mode of FDI in Africa.…”