Strategic alignment and foreign entry performance: a holistic approach of the impact of entry timing, mode and location

Abstract

Current research on foreign market entry and performance has generally partitioned into three separate research areas: entry timing, location and mode. Following a holistic system approach, this study builds a network-based foreign-market entry and performance model to examine simultaneously the joint impact of all these three dimensions (timing, location and mode) on foreign market entry survival. It is argued that these three dimensions are interdependent within an integrated strategic system of foreign market entry. The entry strategies that can achieve the systematic alignment internally among the three strategy dimensions and externally with the business environment will enhance foreign subsidiary’s survival chances. Support is found for the arguments in an empirical analysis of a sample of Japanese MNEs’ more than 10,000 FDI market entries in 57 countries.