The antecedent factors and entry mode choice of multinational lodging firms: the case of growth strategies into new international markets

The primary objective of this study was to utilize an exploratory research methodology to determine relationships among the antecedent factors and entry mode choices of multinational lodging firms. A basic framework was developed based on the review of the literature of multinational strategy, international business theories and concepts and hospitality management strategy.

A qualitative research approach, specifically a multiple-case study method was used. The data was collected through interviews and secondary resources of five multinational lodging companies, analyzed through summary tables and matrices.

The findings from the research included sixteen propositions that explain the relationships among the antecedent factors and entry mode choices in the multinational lodging operations. A framework was developed to illustrate the antecedent factors which may support the entry mode choices of the multinational lodging companies. Factors in the framework include those from the external environment: taxation and repatriation in the political dimension, infrastructure and tourism related factors in the economic dimension, adaptation to local needs and expectations in the socio-cultural dimension, investment and sharing technology in the technological dimension and awareness of the natural environment in the ecological dimension. Antecedent factors in the internal environment include: local and regional competitors, international and local customers, gateway and commercial centers of property locations, the strengths and weaknesses in tangible and intangible assets and partner selection criteria. These factors were found to have an important influence on the entry mode choices of the five participating multinational lodging companies.