Linking foreign operating mode decisions to performance: A theoretical integration and comparative case analysis of United States 'high-tech' ventures in China and other Asia/Pacific Rim countries

As the role of international operations becomes ever greater in multinational companies, corporate decision makers continue to search out higher performing foreign investment strategies. Often key to the success of a corporate foreign venture is the operating mode the firm chooses. This investigation aims to establish a more effective foreign operating mode decision model which is linked to venture performance.; It is posited that the operating mode choice can best be studied through an integration of four separate theoretical lenses: international strategic motivations, dominant logic theory, transaction cost economics, and options theory. This theoretical integration allows the formulation of a template model and propositions which predict a firm's operating modality. It also provides for a contingency framework which links the operating mode choice to performance. This template model is then refined through an iterative multiple case analysis across 35 'high-tech' manufacturers headquartered in the San Francisco Bay Area which have recently established operations in China and other Asia/Pacific Rim countries.; The iterative case analysis allows a refinement and validation of the template decision model. The findings of the study point to the efficacy of the adapted operating mode decision/performance model based on replication logic analysis. To sum, it is shown through the case analysis methodology that a contingent link between operating mode decision factors and mode selection does exist, and that creating a good 'fit' between these decision factors and the mode choice does lead to improved venture performance.; The results indicate that a firm's international strategy is clearly the driving force in a firm's choice of a particular operating mode. Further, the mode selection should be chosen to meet the requirements of a firm's international strategy to facilitate good venture performance. Additionally, appropriate international strategy formulation and mode selection are shown to be enabled through a high decision context (high decision process comprehensiveness and high decision team heterogeneity). The results also indicate that technology transfer costs and environmental concerns are normally managed by more refined means than operating mode selection.