Transaction cost determinants and advantage transferability's effect on international ownership strategy ¬リニ

a r t i c l e i n f o Keywords: Location-boundedness of advantage Multinational enterprises Ownership strategy Transaction cost Transferability This research examines the complementary effect of transaction cost perspective and resource-based view on multinational enterprises' (MNEs) ownership strategies. Advantages may be location bounded, making certain advantages transferable and others non-transferable. Drawing on the concept of transferability of advantage, this study examines the advantage's location-boundedness and the effect of transaction cost on MNEs' ownership strategy. The empirical analysis combines survey data and secondary data from annual reports. The use of multiple sources avoids common method biases. Regression results show that both transaction cost perspective and location-boundedness of advantage greatly affect international ownership strategy. This study contributes to the literature by further examining this effect, thus allowing a better understanding of a firm's advantage. Firms can apply the findings to design an ownership strategy that considers both efficient and benefit lenses, fostering successful foreign investment. Entry mode plays a major role in MNEs' international expansion (Stopford & Wells, 1972). Transaction cost perspective has a lasting sustainable influence on foreign ownership with low transaction costs. Nevertheless, results vary depending on data sources (Pak & Park, 2004), and previous findings reveal not decisive of the transaction cost MNEs' international ownership strategy obeys to multiple factors that a single theory cannot explain (Calvet, 1981), but different perspectives can provide explanations. This study, therefore, incorporates different theoretical perspectives to explain international ownership strategy. Transaction cost perspective focuses on efficiency and cost and ignores other factors (Oliver, 1997). Resource-based view acknowledges the existence of MNEs not only on the minimum cost, but also on possession of advantage and value creation process. Those two perspectives explain MNEs' existence and are the major theoretical foundations of the international entry strategies (Anderson & Gatignon, 1986; Delios & Beamish, 1999). Transaction cost perspective focuses on cost. The resource-based view focuses on benefit. Both views are complementary. Scholars should consider both theories in international entry strategies (Tsang, 2000). Therefore, this study examines these two complementary perspectives' effect on the determinants of international ownership strategy. Monopoly advantage theory proposes that MNEs that own monopo-listic advantages can effectively conduct foreign direct investments (Kindleberger, 1969; Lall & Siddharthan, 1982). Conceptual models assume that ownership-specific advantages develop at firms' headquarters and then transfer to a network of foreign subsidiaries show that MNEs' degree of success in advantage transfer varies (Lo & Lin, 2015). …