Dynamics of Foreign Operation Modes and their Combinations : Insights for International Strategic Management

Thinking strategically about foreign operation modes requires moving beyond making a choice for the initial entry into a country. The rethinking about foreign operation modes and how they are used in international business activity has ushered in consideration of the reality of mode combinations as part of mode strategy. We advance theoretical justification for the use of mode combinations. In general, there are strong arguments as to why companies can gain significant benefits from building mode combinations, but mode combinations are as such no panacea. We have also stressed that there are potential barriers to their adoption, and costs in implementing them. Changing modes or mode combinations is not a frictionless exercise