This study aims to understand how uncertainty (measured as different types of distance between home- and host-countries) affects entry mode decisions in foreign markets, and more precisely the decision to create an equity or a non-equity agreement. Contrary to most contributions that have investigated the role of each distance independently, we mobilize the CAGE Framework to analyze simultaneously the influence of 4 types of distance (Cultural, Administrative, Geographic and Economic) on the choice of creating an equity or a non-equity agreement. Methodological we have relied on the SDC Platinum database where we have used a binominal logistic regression. The results show that when the cultural or the administrative distance increases, firms have a higher likelihood of creating equity agreements. Conversely, when the geographical or economic distances increases firms are more likely to create non-equity agreements.
