An empirical investigation into international entry mode decision-making effectiveness

This study examines the effect of decision rationality and hierarchical centralization on international entry mode decision-making effectiveness (DME). The role of environmental uncertainty is additionally explored as a moderating variable in this investigation. Drawing from the strategic decision-making process perspective, this research is seemingly the first to include behavioral processes in explaining how effective the decision associated with adopting an international entry mode is. Based on a study of 233 internationalized Chinese private firms, the evidence suggests that decision rationality positively influences DME, while hierarchical centralization negatively affects DME. The moderating effects of environmental uncertainty are negative for both decision rationality and hierarchical centralization.

► The influence of decision-making processes on entry mode effectiveness is examined. ► The study investigates activities of 233 Chinese internationalized private firms. ► Rationality positively affects effectiveness while centralization negatively. ► The moderating effects of environmental uncertainty are negative.