Mode of Foreign Market Entry: An Analysis of the Property and Liability Insurance Industry

Abstract

The choice of foreign market entry technique has been identified as a frontier issue in international marketing. New theories of international operations and modes of foreign market entry are emerging in the literature. Yet, little empirical research concerning foreign market entry has been conducted that focuses on service industries. Multinational insurers face a wide array of choices with respect to foreign market entry technique.This study examines the techniques primary property and liability insurers use to enter foreign markets. Two methodologies are used: structured interviews and questionnaire survey. Results of 21 interviews are reported. Responses to the survey were received from 271 companies domiciled in 47 countries. Data were collected for 216 foreign market entries. Summary statistics are reported and the data are analyzed in the context of foreign market entry theories.