Institutional Strategy And Multinationals’ Entry Mode Choice

The ability of Multinational Corporations (MNCs) using different entry mode choices to strategically influence their environments has become an important concern in international business research. We adopt the concept of institutional strategy to explain patterns of MNCs’action that are directed toward managing the various institutional pressures. The institutional strategies vary with different multinational entry mode choices used by MNCs. This study proposes that the MNCs using different entry mode choice adopt different institutional strategies to respond two primary institutional pressures---internal (parent) and external (host country). In order to provide a constructive alternative explanation for multinationals’ entry mode choice in institutional perspectives, further empirical research and literature review is required