Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5107204 | Journal of World Business | 2016 | 15 Pages |
Abstract
This paper contributes to entry mode theories by proposing to integrate the distinction between uncertainty and manageable risk (Knight, 1921). Acknowledging firms' ability to diversify, transfer and mitigate certain sources of risk provides an additional layer of analysis, improves empirical modelling and managerial practicability of entry mode research. We provide a framework of instruments including capital structure, contractual and network-based risk management. We illustrate the theoretical and empirical value of our framework using a large sample of project financed infrastructure investments. Finally, we position project finance as a risk-motivated, cooperative market entry mode complementing existing categorizations.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Jakob (Asst. Prof. Dr.),