Human Capital and Internationalization

The chapter examines as to how the human capital dimensions differ by the various internalization entry modes. The first part of the chapter briefly explains the multiple entry modes and how they work. These entry modes have been classified into the equity-based entry and non-equity-based entry. It is argued that the type of human capital required for equity base entry modes significantly differs from non-equity-based entry modes. In order to test this argument, the opinions of HR experts from seven Asian countries were taken through a bi-polar questionnaire. The analytical hierarchal process (AHP) approach was employed to quantify the experts' judgments. The detailed procedure has been explained in exhibit 4.1. The findings, exhibited in section 4.4, show a significant difference in types of human capital between equity and non-equity-based entry modes. The last part of the chapter offers conclusion and managerial implication of the AHP-driven findings.