Country conditions in emerging markets and their effects on entry mode decisions of multinational manufacturing enterprises

Abstract

Purpose – The purpose of this paper is to examine entry modes employed by foreign multinational manufacturing enterprises entering Russia. It is designed to discover how multinational firm decision makers perceive country conditions in Russia and to provide the basis for further study to uncover what factors influence their decision to locate manufacturing in such volatile markets rather than employing other, less riskier modes of entry.Design/methodology/approach – This paper uses in‐depth interviews of decision‐makers operating foreign manufacturing firms in different industries in Russia. Under the author's guidance, the interviewees discuss open‐ended questions concerning country conditions in Russia, their evolution and effect on entry modes. The interviewers take notes which are shown to the interviewees at the end of each interview to make sure the notes represent the true and unbiased views of the interviewees.Findings – Finally, favorable economic conditions and large multinational firms' interna...