Abstract

This study explores the relationship between market entry strategies of emerging market firms and their performance in a developed market, by focusing particularly on Indian firms in Germany. Based on the learning theory of internationalisation, hypotheses were developed on the impact of different market entry modes on performance, and on the moderating effect of international exposure on this relationship. The hypotheses are tested against a dataset of 159 Indian firms in Germany by using secondary data. Multivariate regression analyses show strong interaction effects of international exposure, but only weak direct effects of different market entry modes on performance. The study contributes to the market entry literature in general and provides new insights to the analysis of market entry strategies of emerging market firms in particular.

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