Dynamics of Operation Modes: Switches and Additions

Gabriel R. G. Benito, Bent Petersen, Lawrence S. Welch

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review


This chapter takes stock of fifty years of research on mode dynamics - that is, the decisions to switch and add operation modes in a foreign country - as a central international business strategy phenomenon. Numerous studies have advanced knowledge about the various forms of mode dynamics and their underlying drivers, especially regarding mode switches. However, this review of the research also reveals that understanding of the phenomenon of mode additions needs further development. The chapter proposes a theoretical framework for understanding mode additions and provides the example of modularization as an illustration of a mechanism that may help improve the cost–benefit balance of mode switches and additions.
Original languageEnglish
Title of host publicationThe Oxford Handbook of International Business Strategy
EditorsKamel Mellahi, Klaus Meyer, Rajneesh Narula, Irina Surdu, Alain Verbeke
Number of pages23
Place of PublicationOxford
PublisherOxford University Press
Publication date2021
ISBN (Print)9780198868378
Publication statusPublished - 2021


  • International entry mode dynamics
  • Mode switches
  • Mode additions
  • Coordination costs
  • Tradeoffs
  • Modular designs of operation modes

Cite this