scholarly journals The Differing Foreign Entry Mode Choices for Sales and Production Subsidiaries of Multinational Corporations in the Manufacturing Industry

2019 ◽  
Vol 11 (15) ◽  
pp. 4089
Author(s):  
Seok Jin Ko
Keyword(s):  
Multinational Corporations ◽  
Value Chain ◽  
Market Entry ◽  
Manufacturing Industry ◽  
Entry Mode ◽  
Foreign Market ◽  
Manufacturing Firms ◽  
Foreign Market Entry ◽  
Entry Strategies ◽  
Foreign Market Entry Mode

Foreign market entry mode research has been a popular area of study. However, a clear agreement between the usage of conventional constructs and their impact on a firm’s entry mode choice has not yet been found. This paper focuses on how, depending on the type of subsidiary that is established, multinational corporations (MNCs) in the manufacturing industry use different foreign market entry strategies. Previous research either treated types of subsidiaries synonymously or investigated them separately. However, due to the changing competitive landscape and disaggregation of value chain activities into separate subsidiaries, I find it necessary to compare how these entry mode choices differ depending on the activity each subsidiary is responsible for. My analysis finds that MNCs in the manufacturing industry are more likely to use joint ventures rather than wholly owned modes of entry for their production subsidiaries in comparison to their sales subsidiaries. I further explore how the international experience of the MNC strengthens this effect. This research utilizes a sample of 201 listed Korean manufacturing firms and 833 foreign market entry mode choices into 49 countries.

scholarly journals DOES THE FOREIGN MARKET ENTRY MODE CHOICE AFFECT EXPORT PERFORMANCE? THE CASE OF THE SPANISH HOTEL INDUSTRY / AR ĮĖJIMO Į UŽSIENIO RINKĄ STRATEGIJOS PASIRINKIMAS TURI ĮTAKOS EKSPORTO SKATINIMUI? ISPANIJOS VIEŠBUČIŲ SEKTORIAUS PAVYZDYS

2011 ◽  
Vol 12 (2) ◽  
pp. 301-316 ◽  
Author(s):  
Juan M. Berbel-Pineda ◽  
José M. Ramírez-Hurtado
Keyword(s):  
Market Entry ◽  
Export Performance ◽  
Meta Analysis ◽  
Entry Mode ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Performance Variables ◽  
Analysis Technique ◽  
Starting Point ◽  
Foreign Market Entry Mode

Knowing the factors that affect the export performance has become one of the most recent research lines in the literature relative to business internationalisation. In this sense, several works based on the meta-analysis technique have come up in the two last decades in order to recapitulate the set of studies which have analysed such a topic. Taking these reviews as a starting point, we may establish that there is not a clear relationship between the entry mode and export performance variables. With a study on a sample of 122 Spanish hotels all over the world, we have the intention of analysing the existence and sense of the relationship between both variables. As a conclusion, we may state that the market entry mode has a positive and significant influence on export performance. Santrauka Veiksniai, turintys įtakos eksportui ir jo skatinimui, buvo vienas svarbiausių aspektų atliekant mokslinės literatūros analizę verslo internacionalizacijos tematika. Remdamiesi atliktais moksliniais darbais, reziumuojančiais atliktų tyrimų per keletą dešimtmečių rezultatus būtent šia tematika, autoriai kaip atskaitos tašką ėmė prielaidą, kad nėra aiškaus ir stipraus ryšio tarp pateikimo rinkai bei eksporto skatinimo. Straipsnyje iškeltas tikslas remiantis 122 Ispanijos viešbučių, išsidėsčiusių visame pasaulyje, analize nustatyti sąryšio laipsnį tarp pasirinktų kintamųjų. Analizės ir tyrimo rezultatai parodė, kad pateikimo rinkai strategija turi teigiamą ir labai reikšmingą poveikį eksporto skatiminui.

Internationalisation by Business Services: A Methodological Critique of Foreign-Market Entry-Mode Choice

1995 ◽  
Vol 27 (5) ◽  
pp. 683-697 ◽  
Author(s):  
P N O'Farrell ◽  
L Moffat ◽  
P A Wood
Keyword(s):  
Market Entry ◽  
Service Sector ◽  
Cultural Distance ◽  
Mode Choice ◽  
Entry Mode ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Business Services ◽  
Entry Mode Choice ◽  
Foreign Market Entry Mode

In this paper the work of geographers, economists, and management scientists in studying interregional and international expansion by service companies is reviewed. A critique is presented of some of the fundamental methodological problems inherent in analysing foreign-market entry-mode choice. These are particularly apparent when studying the process of business service-sector internationalisation. Issues discussed include inconsistencies in the definition of which entry decision to analyse; the level of aggregation to adopt when modelling mode choice; mode choice and cooperative organisational networks; different approaches to measuring cultural distance and country risk; and the methodologies used to develop scales to represent the constructs relevant to internationalisation.

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