The Choice of Mode for International Strategic Combinations: A Critical Review and Research Proposal

In this paper, we critically review the literature on firm’s mode choice for international strategic combinations. From the review, we identify both ‘MNC’s intangible resource’ and ‘MNC’s need for resource from local firm’ as key theoretical constructs. Potential theoretical relationships involving the two constructs are further explored, and research avenues to overcome some of the existing theoretical deficiencies are suggested. Noting strong empirical inconclusiveness in the findings among different studies, we identify areas of improvement with respect to measurement and research design for future research.