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,then a _____ is the preferable mode of entry.
A) greenfield venture
B) joint venture
C) licensing agreement
D) franchising deal
E) turnkey project

Question

Quizplus · Accepted Answer

A greenfield venture is preferable because it allows the firm to fully implement and control its unique organizational competencies, skills, routines, and culture without interference from existing local partners or constraints that might come with other entry modes.

If a Firm Is Considering Entering a Country Where Incumbents