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Determinants of Equity Ownership Stake in Foreign Entry Decisions: A Systematic Review and Research Agenda

Chhabra, Ankita; Popli, Manish; Li, Yi


Manish Popli

Yi Li


In international business (IB), the level of equity ownership adopted by a firm is an important decision. In this study, we review and synthesize the findings of 105 empirical studies published in prominent IB and management journals on the determinants of equity ownership stake in foreign investment decisions, published between 1991 and 2020. Three primary theoretical lenses ‒ organizational learning perspective, transaction cost economics and institutional perspective – are adopted to catalogue and synthesize the existing literature. We find that, despite the proliferation of IB studies on antecedents of level of equity ownership decisions, many unanswered questions remain. We also find that theoretical fault lines impede progress in this research stream. Based on the literature review, we suggest a research programme that includes accounting for the behavioural view of decision-making in the organization, shifting from an atomistic perspective to a network perspective of the firm, having a better understanding of the process of internationalization and considering industry heterogeneity as well as the host country's characteristics.

Journal Article Type Article
Acceptance Date Dec 17, 2020
Online Publication Date Jan 29, 2021
Publication Date 2021-04
Deposit Date Sep 15, 2022
Journal International Journal of Management Reviews
Print ISSN 1460-8545
Electronic ISSN 1468-2370
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 23
Issue 2
Pages 244-276
Public URL