Can Dunning's OLI (Ownership, Location, Internalization) framework be used to predict the best performing international entry modes or merely the most commonly selected modes? Using data German and Dutch firms investing in Central and Eastern Europe, we investigate the relationship between...

In this study, we suggest that disparities between service and manufacturing firms' international entry mode choices can be explained by differences in their reaction to transaction cost based variables and by the influence of risk and trust propensity. We find that: (1) due to the investment...