Market Entry Mode Selection Research Articles

Assessment and analysis of factors depicting the international expansion process of mobile network operators: case of Zain Telecom

The internationalisation of a small mobile operator into the surrounding emerging markets is an entrepreneurial and risky process due to the target markets' nature. This paper deals with market and timing factors potentially influencing the transaction costs of a company in its international ventures based on Gerpott and Jakopin's paper 'Determinants of mobile network operators' choice of cross-border entry modes'. This model did not seem to explain all factors influencing the entry mode choices of Zain Telecom. Hence, in order to understand the managerial drivers in Zain Telecom's decision-making, a holistic framework market and market entry mode selection (MEMS) model was used. This framework shed the light on many of the managerial facets of Zain's strategical decision-making and answered the following question: How did the target country, market, and timing factors contribute in shaping Zain Telecom's cross-border entry mode choices?

Family business going abroad: the effect of family ownership on foreign market entry mode decisions

Research on family firms’ internationalization is growing, but empirical findings are mixed. To reconcile prior studies, we focus on strategic decisions related to internationalization, specifically the foreign market entry mode selection process. We suggest that the choice about entry mode is especially significant for family owners because it may either align or conflict with two key family-related goals: maintaining family control and keeping a long-term orientation of the business. We argue that these goals have different weights within family firms according to differences in ownership structure, with significant implications for international strategic decisions. We rely on a sample of medium-sized family-owned Italian firms and show that different types of family ownership structures affect entry mode decisions differently and specifically influence the time horizon of the foreign investment and willingness to cooperate with external actors. We also provide empirical evidence that the presence of a non-family manager moderates the relationship between family ownership and entry mode decisions. Our study expands on prior research by highlighting how family firms enter foreign markets and pointing out the strategic implications of family firm heterogeneity.

Market Entry Mode Choice: Theory and Practice. Comparing China and Brazil Cases

The purpose of this article is to give a brief introduction into a work, which investigated the differences between the actual strategic approach, that a company executes when entering a new market, with the approach offered by various theories. Due to confidentiality agreement signed with the company the author is not authorized to disclose any sensitive or internal information that can reveal the company’s identity. The paper combines the most common theories and approaches for market entry mode selection in order to develop a theory-based framework, which furthermore is compared to the firm’s working theory. The analysis is performed with the use of two markets, where the company already operates. This method of analysis identifies the crossing points as well as the controversial aspects of both frameworks. This way the study tests how effective and applicable are traditional theories to such a niche market that the company operates in. On the other hand by comparing the company’s entry mode selection model with the theorybased model the study identifies the imperfections of the company’s theory and makes a series of recommendations for its improvement. Additionally, it reveals the importance of combining and adjusting the theories to the specific company and not vice versa.

Entry mode selection for international construction markets: the influence of host country related factors

The increasing necessity to establish a permanent presence in overseas markets challenges the tradition of tide‐like market entry mode of international contractors and confronts them with an important dichotomous selection between permanent entry mode and mobile entry mode. By borrowing theories and previous findings from the general international business area, the hypotheses regarding the influences of specific host country related factors upon the selection between the two generic entry modes, including cultural difference, trade link, host market potential, investment risk, institutional entry barrier and competition intensity are developed. Measures are proposed for these factors as well as some control variables and the dependent variable (entry mode). Data were collected from multiple sources for these variables. A binary logistic regression analysis was performed to test the hypotheses and develop a statistical model for entry mode selection. The model is statistically significant and not all the hypotheses are supported, confirming the uniqueness of the population of international contractors in market entry mode selection.

Contribution of immigrant employees to international marketing standardisation strategies selection

PurposePrevious studies on the contribution of immigrant employees (IE) have mainly focused on immigrants from non‐Western industrialised countries. Few studies have explored the contribution of immigrants from the European Union (EU). The purpose of this commentary is to present the outcomes of a recent study on immigrant employees from the EU region.Design/methodology/approachThis paper examines the experience of 77 New Zealand firms operating in 11 EU markets. Only 10 percent of the firms investigated hired IE to assist or manage their firms' marketing activities in the EU region, suggesting employment of IE is still in its infancy stage. The EU is the largest immigrant source region, which contributes more than 30 percent of total immigrants to New Zealand in 2005. This study uncovers the profile of firms which have, or have not, utilised such a strategy.FindingsIt was found that, at present, the users of IE are larger in size, equipped with higher international business experience, FDI mode users and operate more in the consumer durable and industrial product sectors. Among marketing environmental factors examined, competitive environment accounted for the most variation. The extent of standardisation difference of price and place was the highest.Originality/valueThe findings of this study imply that the choice of IE from the EU region might relate to a firm's size, international business experience, market entry mode selection, product type and host market environment and characteristics (e.g. market size). IE might also have contributed to a firm's choice of pricing and place standardisation strategy. However, these relationships need to be verified by future research.

Choice of foreign market entry mode in service firms

PurposeThe purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry modes service firms opt for, and if this is influenced by systematic differences between types of service industries. A secondary purpose is to test the generalizability of the research findings from manufacturing sector to service sector firms.Design/methodology/approachOur sample consisted of 140 Swedish service firms. These firms were investigated using a mailed questionnaire survey, and logistic regression analysis was used for testing the hypotheses.FindingsThe statistical analysis shows that, in general, soft‐service firms are much more likely than hard service firms to choose a high control entry mode over a low control entry mode. Furthermore, as cultural distance increases, the likelihood of this choice increases even more.Research limitations/implicationsThe implications are that while hard service suppliers can learn from the experience of manufacturing firms going abroad, soft services are unique. Given the importance for soft‐service suppliers to interact with their foreign customers, they should opt for a high degree of control over their foreign market entry mode. In future research on foreign market entry mode selection in service firms more attention should be given to social processes that exercise control.Originality/valueThe findings enhance knowledge on foreign market entry by service firms.

Market Entry Mode Selection: The Experience of Small Firms in Hong Kong Investing in China

(2001). Market Entry Mode Selection: The Experience of Small Firms in Hong Kong Investing in China. Asia Pacific Business Review: Vol. 8, No. 1, pp. 19-41.

Factors influencing market and entry mode selection: developing the MEMS model

In the associated paper “Selecting overseas markets and entry modes: two decision processes or one?”, it was proposed that market selection and market entry mode selection be looked upon as two aspects of one decision process. Examines a wide spectrum of factor categories to be included in the proposed MEMS model and argues that an inclusive spectrum of analysis would make it a universally applicable model, capable of accommodating all business contexts and most relevant business practices.

Selecting overseas markets and entry modes: two decision processes or one?

Contrary to the prevalent theory approaches that treat market selection and market entry mode selection as two related but essentially separate decisions, this paper argues that these should most appropriately be looked on as two aspects of one decision process. It proposes that an exhaustive list of factors that can influence outcomes of such an integrated process be developed and argues that an inclusive spectrum of analysis would be able to accommodate all business contexts and most relevant business practice. It then presents a new market and market entry mode selection model (MEMS) which conforms to the proposed inclusive spectrum of the underlying decision process analysis.