Foreign Operation Modes

In this entry, we account for research on foreign operation modes (FOMs) with an emphasis on the dynamic aspect— i.e., the decisions to expand, switch and add operation modes in a foreign country after initial entry. As highlighted in the entry on foreign entry mode, the overwhelming bulk of research has focused on the mode chosen by a company at the moment in time when it decides to go into a particular location to pursue some business activity there. While research on initial entry mode choices has developed into a mature international business (IB) sub-field, studies of firms’ post-entry decisions are somewhat fewer and in general of a newer date.