2013 | 14 | 51-59
Article title

Institutional Context and Transaction Costs in Entry Made Choice

Title variants
Languages of publication
One of the effects of globalization is increasing internationalization of companies, which takes on more and more advanced forms. One of the decisions facing enterprises concerns the choice of target markets and forms of expansion. A theory useful in the process of choosing internationalization forms is transaction cost theory, which belongs to institutional economics. In this paper decomposition of transaction is proposed, taking into account dimensions determining particular entry modes and devoting special attention to the institutional and cultural contexts. Institutional framework based costs may decide about whether or not to undertake certain forms of expansion. Furthermore it is necessary to include the efficiency of the planned action, both from the point of view of the enterprise, as well as the country.
Physical description
  • Anand J., Delios A. (1997): Location Specificity and the Transferability of Downstream Assets to Foreign Subsidiaries. "Journal of International Business Studies", Vol. 28, No. 3, pp. 579-603.
  • Anderson E., Gatignon H. (1988): The Multinational Corporation's Degree of Control Over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation. "Journal of Law, Economics and Organization", Vol. 4, pp. 305-336.
  • Anderson E., Gatignon H. (1986): Modes of Foreign Entry: A Transaction Cost Analysis and Propositions. "Journal of International Business Studies" Fall, pp. 1-26.
  • Brouthers K.D. (2002): Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance. "Journal of International Business Studies", Vol. 33, No. 2, pp. 203-221.
  • Brouthers L.E., Brouthers K.D. (2001): Explaining the National Cultural Distance Paradox. "Journal of International Business Studies", Vol. 32, No. 1, pp. 177-189.
  • Brouthers L.E., Brouthers K.D., Werner S. (2003): Transaction Cost-Enhanced Entry Mode Choices and Firm Performance. "Strategic Management Journal", Vol. 24, No. 12, pp. 1239-1248.
  • Brouthers L.E., Brouthers K.D., Werner S. (1999): Is Dunning's Eclectic Framework Descriptive or Normative? "Journal of International Business Studies", Vol. 30, No. 4, p. 831-844.
  • Brouthers K.D., Nakos G. (2004): SME Entry Mode Choice and Performance: A Transaction Cost Perspective. "Entrepreneurship Theory and Practice", Vol. 28, No. 3, pp. 229-247.
  • Canabal A., White G.O. (2008): Entry Mode Research: Past and Future. "International Business Review", Vol. 17, pp. 267-284.
  • Coase R.H. (1960): The Problem of Social Cost. "Journal of Law and Economics", Vol. 3, pp. 1-44.
  • Contractor F.J. (1990): Contractual and Cooperative Forms of International Business: Towards a Unified Theory of Model Choice. "Management International Review", Vol. 30, pp. 31-54.
  • Drogendijk R., Slangen A. (2006): Hofstede, Schwartz, or Managerial Perceptions? The Effects of Different Cultural Distance Measures on Establishment Mode Choices by Multinational Enterprises. "International Business Review", Vol. 15, pp. 361-380.
  • Fischer S. (1977): Long-Term Contracting, Sticky Prices and Monetary Policy: Comment. "Journal of Monetary Economics", Vol. 3 No. 3, pp. 317-323.
  • Godłów-Legiędź J. (2009): Koszty transakcji. Istota i problem kwantyfikacji. In: Nowa Ekonomia Instytucjonalna. Teoria i zastosowania. Ed. by S. Rudolf. Wydawnictwo Wyższej Szkoły Ekonomii i Prawa, Kielce.
  • Gorynia M., Mroczek K. (2013): Koszty transakcyjne jako determinanta formy zagranicznej ekspansji przedsiębiorstwa. "Ekonomista", nr 2, pp. 209-219.
  • Hennart J.F. (1991): The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States. "Management Science", Vol. 37, No 4, pp. 483-497.
  • Kogut B., Singh H. (1988): The Effect of National Culture on the Choice of Entry Mode. "Journal of International Business Studies", Vol. 19, pp. 411-432.
  • Koronowski A. (2012): Koszty transakcyjne a efektywność ekonomiczna. In: Nowa ekonomia instytucjonalna wobec kryzysu gospodarczego. Ed. by S. Rudolf. Wydawnictwo Wyższej Szkoły Ekonomii i Prawa, Kielce.
  • Pan Y., Tse D.K. (2000):, The Hierarchical Model of Market Entry Modes. "Journal of International Business Studies", Vol. 31, pp. 535-554.
  • Rudolf S. (2012): Nowa ekonomia instytucjonalna lekarstwem na kryzys. In: Nowa ekonomia instytucjonalna wobec kryzysu gospodarczego. Ed. by S. Rudolf. Wydawnictwo Wyższej Szkoły Ekonomii i Prawa, Kielce.
  • Taylor C.R., Zou S., Osland G.E. (1998): A Transaction Cost Perspective on Foreign Market Entry Strategies of US and Japanese Firms. "Thunderbird International Business Review", Vol. 40, No 4, pp. 389-412.
  • Todorova T. (2011): The State as an Instrument of Transaction-Cost Economies. "Problems of Economic Transition", Vol. 54, No. 7, pp. 31-48.
  • Williamson O.E. (1985): The Economic Institutions of Capitalism. Free Press, New York.
Document Type
Publication order reference
YADDA identifier
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.