A Study on the Entry Strategies of Turkish Companies to Emerging Economies

Abstract

There is a wide literature about companies’ entry-modes (acquisition and greenfield) and ownership preferences (JV and WOS) that they use while investing abroad. In terms of these entry- modes, the explanation capacity of Institutional Theory, Transaction Cost Theory and Resource Dependency Theory have been measured by several studies. However, when these strategies are evaluated separately their explanation capacity decreases. Therefore, new approaches are used. One of these new approaches by Dunning states that the explanation capacity of these theories would be enhanced by integrating them. Dunning argues that these theories would be integrated by accepting that ownership advantages would be assessed as resource dependency theory, location advantages would be assessed as institutional theory and internalization advantages would be assessed as transaction cost theory. This Eclectic approach is used in this study in terms of the interactions of three different approaches.
 
 Entry modes with multiple theories would be more effective than a single theory in order to explain the entry modes of these companies. In this study, entry strategies of Turkish companies to the Russia Federation, Balkan Countries and Central Asia are explained, compared and discussed in terms of these theories. The aim of this study is to contribute to the relevant literature by understanding which entry strategy would explain the behavior of Turkish companies while investing in other developing countries.