Abstract
It is about fifty years since mode dynamics – here understood as firms’ switches and additions of operation modes in a foreign country – was first mentioned by international business scholars as a topic deserving attention. Numerous studies since then have advanced our knowledge about the various appearances of mode dynamics and the underlying drivers; but as a review of this research stream reveals, our understanding of the phenomenon – mode additions, in particular - is yet to be fully developed. In this paper, we take stock of fifty years of research on mode dynamics as a central international business phenomenon. As a prospective complement to this retrospective view, we develop a theoretical framework for understanding the mode addition phenomenon. Furthermore, we model the balancing and shifting of essential trade-offs in relation to mode additions and highlight modularization as an example of a trade-off-shifting mechanism that may improve the cost-benefit balance. Lastly, and focusing on the switch from a contractual to an in-house arrangement, we outline the key strategic choices which confront decision makers in entrant firms.
Short Bio:
Gabriel R.G. Benito (PhD, Norwegian School of Economics NHH) is Professor at BI Norwegian Business School, Oslo. His previous appointments and research stays include Copenhagen Business School, Henley Business School at University of Reading, University of Melbourne, and University of Valencia. He is Associate Editor of Global Strategy Journal and Consulting Editor of Journal of International Business Studies, and sits on the editorial boards of numerous academic journals in international business, management, and strategy.
Professor Benito has been studying the internationalization of business for more than 25 years. His current research agenda focuses on corporate governance, the strategies of multinational enterprises, and the economic organization of international business. His books include Foreign Operation Methods (w/ L.S. Welch and B. Petersen, (2nd edition) 2018, Edward Elgar), and Multinationals on the Periphery (w/ R. Narula, 2007, Palgrave). His research has appeared in many journals, including Journal of International Business Studies, Journal of Management Studies, Journal of Economic Geography, Applied Economics, Managerial and Decision Economics, Management International Review, Journal of Business Research, and International Business Review.
Professor Benito is a Fellow of Academy of International Business, and Fellow and former president of European International Business Academy.