Strategic and performance issues associated with mode of entry substitution patterns: A comparison of Canadian and US manufacturing firms Available to Purchase

Investigates the determinants, decision process, and performance of mode of entry substitution patterns used by multinational firms. Based on past research, two paths (incremental and non‐incremental/zigzag) for adopting entry modes in foreign product markets were conceptualized. Responses primarily via mail survey from executives of 77 Canadian and 108 US manufacturing firms verified usage of the conceptualized paths. Further, it was found that executives do preconceptualize their substitution pattern and that such preconceptualization is useful in strategic planning. Also, the executives identified choice variables critical to each pattern choice and some significant path discriminators. Finally, executives are satisfied with the performance of their chosen substitution paths.