This article investigates the claim that national culture influences the choice of entry mode in foreign direct investment (FDI). Using a multinomial logit model, the authors analyze data on 228 entries into the United States by acquisition, wholly owned greenfield, and joint venture. They test two hypotheses: (1) the greater the cultural distance between the investing firm's country and the United States, the more likely the firm will choose a joint venture or wholly owned greenfield over an acquisition. (2) The greater the culture of the investing firm is characterized by uncertainty avoidance, the more likely the firm will choose a joint venture or wholly owned greenfield over an acquisition. The study finds empirical support for the effect of national culture on entry choice. It suggests that transaction cost explanations for mode of entry choice must be qualified by factors stemming from the institutional and cultural context. The results validate the usefulness of Hofstede's cultural dimensions, though this was not the primary intention of the study. The findings also suggest that cultural differences influence the perception of costs and uncertainty associated with different entry modes. The study highlights that cultural distance and uncertainty avoidance are significant factors in the choice of entry mode. Firms from culturally distant countries are more likely to choose joint ventures or greenfield investments over acquisitions. Additionally, firms from countries with high uncertainty avoidance are more likely to choose joint ventures or greenfield investments over acquisitions. The results also show that the size of the firm, its experience, and industry characteristics influence the choice of entry mode. The study concludes that cultural distance and national attitudes towards uncertainty avoidance significantly influence the choice of entry mode. The results are robust despite controlling for industry- and firm-level effects. The findings suggest that cultural factors play a crucial role in the decision-making process of foreign firms entering new markets. The study also highlights the importance of considering cultural differences in the empirical analysis of entry mode choice.This article investigates the claim that national culture influences the choice of entry mode in foreign direct investment (FDI). Using a multinomial logit model, the authors analyze data on 228 entries into the United States by acquisition, wholly owned greenfield, and joint venture. They test two hypotheses: (1) the greater the cultural distance between the investing firm's country and the United States, the more likely the firm will choose a joint venture or wholly owned greenfield over an acquisition. (2) The greater the culture of the investing firm is characterized by uncertainty avoidance, the more likely the firm will choose a joint venture or wholly owned greenfield over an acquisition. The study finds empirical support for the effect of national culture on entry choice. It suggests that transaction cost explanations for mode of entry choice must be qualified by factors stemming from the institutional and cultural context. The results validate the usefulness of Hofstede's cultural dimensions, though this was not the primary intention of the study. The findings also suggest that cultural differences influence the perception of costs and uncertainty associated with different entry modes. The study highlights that cultural distance and uncertainty avoidance are significant factors in the choice of entry mode. Firms from culturally distant countries are more likely to choose joint ventures or greenfield investments over acquisitions. Additionally, firms from countries with high uncertainty avoidance are more likely to choose joint ventures or greenfield investments over acquisitions. The results also show that the size of the firm, its experience, and industry characteristics influence the choice of entry mode. The study concludes that cultural distance and national attitudes towards uncertainty avoidance significantly influence the choice of entry mode. The results are robust despite controlling for industry- and firm-level effects. The findings suggest that cultural factors play a crucial role in the decision-making process of foreign firms entering new markets. The study also highlights the importance of considering cultural differences in the empirical analysis of entry mode choice.