Mode of International Entry: An Isomorphism Perspective

The determination of entry-modes is examined using an institutional theory framework. Two sources of isomorphic pressures affect a strategic business unit's (SBU) entry-mode choice: (1) host country institutional environment, and (2) internal institutional environment (the parent organization). SBUs were hypothesized to adopt similar organizational forms, structures, policies, and practices, thus becoming isomorphic, based on felt pressures to conform to behavioral norms within the environments. The results indicated that SBUs using wholly-owned entry-modes demonstrated high levels of internal (parent) isomorphism; those using exporting, joint ventures, or licensing agreements demonstrated external isomorphism; and those using multiple or mixed entry-mode demonstrated low levels of isomorphic pressures.