International Market Expansion Research Articles

The Japanese Pharmaceutical Industry in Transition: Has Higher Research Orientation Resulted in Higher Market Value?

We analyze here the determinants of market value for 34 listed Japanese pharmaceutical companies between 1987 and 1998. During this period, Japanese pharmaceutical firms increased their investments in basic R&D in the process of preparing for international market expansion. We provide evidence that international patents significantly contribute to a firm's market value, expressed in Tobin's q, while publications in the scientific literature do not contribute to this value. In contrast to earlier studies on the US pharmaceutical industry, such as Gambardella (1992), our findings also suggest that in Japan a firm's publications and patents are not inter-related.

Cultural Policy in a Free-Trade Environment: Mexican Television in Transition

As Mexico's government undertook neoliberal reforms to join the North American Free Trade Agreement (NAFTA) in 1994, a number of scholars questioned the cultural consequences of closer media ties to the United States and Canada. Government officials countered that Mexico's strong identity needed no protection. This study situates the disagreement within cultural policy traditions, and examines how Mexican television broadcasting changed under globalization forces—including domestic competition, international market expansion, and new technology development—during the 1990s and early 2000s.Thestudy concludes that insufficient attention was given NAFTA's impact on Mexico's own television industry, which strongly influences culture.

Banking on global success: Internationalization strategy and its limitations (the case of Allied Irish Banks)

AbstractThis article explores the choices and challenges facing Ireland's leading financial services corporation, Allied Irish Banks (AIB), in its strategy for international market growth. It begins with an examination of the company's internationalization strategies within the global banking context. It then considers the limitations of international market expansion and transnational management control for a company with low brand recognition outside of its home market and limited experience of international operations. Finally, it elaborates on the strategic challenges that face the organization and reflects on the lessons for other midsized international companies competing in consolidating, globalized industries.© 2006 Wiley Periodicals, Inc.

A Marketing Resource-Based Model of International Market Entry and Expansion for Professional Services Firms

ABSTRACT This paper examines the entry of the Big Six international accounting firms, into emerging foreign markets and explores marketing resource considerations once established in those markets. The study is based on survey data (supplied by the Big Six) regarding their penetration of the People's Republic of China, the Commonwealth of Independent States, and Central Europe. The paper presents a marketing resource-based model based upon relevant research. The model focuses on firm specific resource capabilities interacting with the foreign business environment and the foreign intrafirm structure as a determinant of foreign market entry choice and eventual market expansion. The research findings broaden our understanding of factors that influence professional services firms' development of marketing resource strategies when expanding globally. While all firms surveyed offered a full range of services, their marketing resource strategy differed from domestic approaches because of various local constraints on marketing mix elements.

Advances in international marketing theory and practice

1. IntroductionRecent decades have witnessed the rise of global business, stemming from theconvergence of economic conditions world-wide, the liberalization of national tradepolicies, regional economic integration, and advances in communication, transpor-tation, and information technologies (Cateora & Ghauri, 2000). These sweepingchanges have led to an increasing number of firms seeking opportunities in inter-national markets to achieve their growth objectives, as well as to safeguard theirmarket position and ensure survival (Leonidou, Katsikeas & Samiee, 2002). Withthe value of international trade now standing at $7.6 trillion (World Trade Organiza-tion, 2002), international market entry and expansion decision-making is now a cru-cial aspect of contemporary business policy (Cavusgil, 1998). Notwithstanding this,firms often struggle to develop and maintain successful international market oper-ations, due largely to the multiple, diverse, and idiosyncratic nature of foreignenvironments (Samiee & Walters, 1990).The international marketing literature has grown exponentially in recent years inorder to offer sufficient support to corporate and public policy makers confrontingtoday’s hostile global business conditions. The advancement of international market-ing theory is of vital interest to national economies and individual firms alike. At themacroeconomic level, international marketing provides the opportunity to accumulateforeign exchange reserves, improve national productivity, and enhance general qual-ity of life (Czinkota, 1994). At the microeconomic level, firms see international mar-keting as a tool for boosting corporate growth, improving financial performance, and

Case study: strategic alliances in international franchising ‐ the entry of Silver Streak Restaurant Corporation into Mexico

The study examines the process of international market expansion by a relatively new and small franchisor. Particular emphasis is placed on the company‘s efforts to identify a suitable partner in the host country, the adaptation of the concept to address differences in the new market, and the multitude of critical decisions that need to be made when franchising in international markets. The authors also discuss the role that strategic alliances play in the success of international franchising efforts. The paper concludes with the implications of this case for both researchers and practitioners.

Implications of Firm Controllable Factors on Export Growth

The need to stimulate export activity of U.S. companies has motivated research on export behavior of firms. Based on the strategic export model, this study attempts to investigate firm controllable factors that stimulate export growth. A survey of 640 small and medium sized manufacturing firms engaged in exporting showed that having a high commitment to exporting, having a possitive attitude toward exporting by placing less importance on perceived barriers to exporting (or export growth), having a customized product adaptation policy and willingness to modify the product, and seeking outside export assistance contribute to export success measured by export growth. International market expansion strategy did not seem to be associate with export growth.

International market expansion for new high tech products through franchising

This article analyzes the problems of high tech manufacturers attempting rapid international expansion for their new products, with limited resources. Independent distributors, licensing, joint venturing, or direct foreign investment are the commonly used channel forms. Yet the analysis shows that there are circumstances under which comprehensive franchising (conventionally used for low tech, standardized products) could be an optimal solution to the channel design problem.

International Market Entry and Expansion Via Independent or Integrated Channels of Distribution

International Market Entry and Expansion Via Independent or Integrated Channels of Distribution

International Market Entry and Expansion via Independent or Integrated Channels of Distribution

Manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (company salesforce and company distribution division) or by independent intermediaries (outside sales agents and distributors)? This is an issue of downstream vertical integration. The authors explore the issue through an empirical investigation of distribution channel choice in foreign markets by U.S. semiconductor companies. Using original interview data, they develop scales to measure key variables. With these measures they build a logistic regression model of what factors affect the form of the distribution channel chosen in various foreign markets. The results indicate that integration is associated with the degree of transaction specificity of assets in the distribution function and whether or not the product being introduced is highly differentiated. There is evidence that the product will be sold through whatever channel is already in place, if any. Further, American firms seem more likely to integrate the distribution channel in highly developed industrialized countries (Western Europe) than in Japan and Southeast Asia, which are more culturally dissimilar. Implications for managers faced with a channel choice are explored.