FDI Entry Strategies as a Function of Distance—The Case of an Emerging Market: Turkey Xanthippe Adamoglou 1 & Dimitrios Kyrkilis 1 Received: 18 August 2016 / Accepted: 30 October 2016 # Springer Science+Business Media New York 2016 Abstract This paper examines the impact of replacing administrative/political dis- tance by institutional distance in the CAGE distance framework. It then tests how the new CIGE framework is affected by two entry mode choices considering the emerging economy of Turkey. In addition, it approaches geographic distance through historical ties and kilometer differences, examining their role on the relationship proposed. The sample consists of 245 foreign equity investments concluded between 2002 and 2010 by investors from European Union Member States and 21 non-European Union countries. Results show that institutional distance affects both the entry mode choice and all other framework variables. Furthermore, geographic distance, through historical ties and kilometer differences, emerges as significant factor influencing the various forms of FDI ownership strategy in the case of Turkey. Keywords Entry mode choice . Multinational enterprises . CAGE distant framework . Institutional distance . Historical ties Introduction Institutional distance has recently been identified as a major factor that affects MNEs’ entry mode choices since country differences are perceived Bas a barrier to obtaining local knowledge, making it difficult for the MNE to manage its foreign subsidiaries on its own^ (Xu and Shenkar 2002, p. 613). National economies are shaped by the regulative, normative, and cognitive structures of a society (Kostova and Zaheer J Knowl Econ DOI 10.1007/s13132-016-0425-1 * Xanthippe Adamoglou adamoglou@hotmail.com Dimitrios Kyrkilis kyrkilis@uom.gr 1 Department of Balkan, Slavic & Oriental Studies, University of Macedonia, 156 Egnatia Street, 54636 Thessaloniki, Greece