Abstract
Many strategic decisions made by firms involve a choice among several discrete alternatives. International Business (IB) scholars are often interested in modelling the factors that potentially influence these (multinomial) choices: these factors might include not only characteristics of the firms making the choices but also attributes of the alternative choices. This paper provides a succinct and intuitive introduction to the possible applications of multinomial choice models in IB research. We briefly outline the theory behind discrete choice modelling, and then explain how multinomial choice models may be estimated (including how the datasets need to be formatted) and how the significance of the coefficient estimates as well as the diagnostic statistics may be tested and interpreted.
| Original language | English |
|---|---|
| Article number | 102011 |
| Number of pages | 15 |
| Journal | International Business Review |
| Volume | 31 |
| Issue number | 4 |
| Early online date | 21 Apr 2022 |
| DOIs | |
| Publication status | Published - Aug 2022 |
Bibliographical note
Funding Information:The authors would like to express their gratitude to Paul Downward for his invaluable insights and comments on the manuscript. All errors remain our own.
Publisher Copyright:
© 2022 Elsevier Ltd
Keywords
- Conditional logit analysis
- Entry mode choice
- Location choice
- Multinomial choice analysis
- Multinomial logit analysis
ASJC Scopus subject areas
- Business and International Management
- Finance
- Marketing