Entry mode decisions: The role of managers’ mental models

Abstract

This study suggests that past research on entry mode choices has assumed that managers rely on comprehensive decisionmaking mechanisms. Based on a series of interviews conducted at two international companies, it is shown that managerial representations developed in domestic markets are more likely to guide entry mode choices. Several propositions are presented to highlight the role of managers’ mental models in entry mode decisions. These propositions are then illustrated with concrete examples provided by interview participants. Managerial implications and directions for future research are discussed. © 1997 by The Haworth Press, Inc. All rights reserved.