Determinants of ownership-based entry mode choice of MNEs : evidence from Mongolia

Kaynak, Erdener and Demirbag, Mehmet and Tatoglu, Ekrem (2007) Determinants of ownership-based entry mode choice of MNEs : evidence from Mongolia. Management International Review, 47 (4). pp. 505-530. ISSN 0938-8249

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Abstract

This paper provides a comprehensive analysis of foreign investors’ ownership strategies in the land-locked transition economy of Mongolia. Drawing broadly on the transaction cost theory and institutional model, a number of investing firm and host country characteristics were identified. Drawing on a sample of 1,033 affiliates of foreign investors with varying levels of foreign ownership, the paper examines the choice between a wholly owned subsidiary (WOS) and a joint venture (JV).