If a firm is considering entering a country where incumbents exist, and if the competitive advantage of the firm is based on the transfer of organizationally embedded competencies, skills, routines, and culture, what would be the preferable mode of entry?
A)Greenfield venture
B)Joint venture
C)Licensing agreement
D)Franchising deal
E)Turnkey project

Question

Quizplus · Accepted Answer

If a firm is considering entering a country where there are no incumbent competitors to be acquired, then a greenfield venture may be the only mode. Even when incumbents exist, if the competitive advantage of the firm is based on the transfer of organizationally embedded competencies, skills, routines, and culture, it may still be preferable to enter via a greenfield venture.

If a Firm Is Considering Entering a Country Where Incumbents