In certain locations, foreign investors frequently use partial acquisitions (PAs) to access locational advantages controlled by local firms. This chapter aims to explain the use of PAs as a mode of entry in emerging economies, based on two unique samples of foreign direct investments in transition economies and a review of recent entry mode literature. Theoretical considerations and empirical data show that PAs are insufficiently explained by combining arguments for acquisitions (viz

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... and for joint ventures (viz wholly-owned subsidiary). We thus challenge some of the assumptions and assertions of recent entry mode research. In particular, reverse asymmetric information effect may override buyers' informational disadvantages. Thus, PAs are often desired by sellers to attain a share in the expected increase of the firm's value. JEL classification: F21, F23, L22