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Making foreign market entry decisions

✍ Scribed by Paloma Almodóvar Martínez; José Emilio Navas López

Publisher
Wiley (John Wiley & Sons)
Year
2009
Tongue
English
Weight
109 KB
Volume
28
Category
Article
ISSN
1932-2054

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✦ Synopsis

Abstract

This article investigates the impact of the overall strategic posture of the firm on the choice of entry mode into a foreign market. This framework identifies three underlying strategies—internationalization, growth, and business—that exert a powerful influence on the choice of an international joint venture as a means of achieving an organization's goals in a global market. After conceptualizing the different types of strategies and analyzing empirical cases, we develop an ordinal logistic regression model to examine the Spanish manufacturing sector for the 2000–2002 period. The results show that firms prefer an international joint venture over a wholly owned subsidiary when developing multidomestic and cost leadership strategies. © 2009 Wiley Periodicals, Inc.

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## Abstract This paper presents a theoretical framework for explaining the entry and exit decisions of a firm, motivated by the differential returns in its home and a host market. Within this framework, the factors underpinning the entry and exit decisions of foreign banks in Hong Kong are examined