Market entry modes: strategic considerations of direct vs. indirect involvement

2013 ◽  
pp. 145-207
Keyword(s):  
Market Entry ◽  
Entry Modes

Market entry strategies in a high-tech successive generations market: a case study of three semiconductor firms with different entry modes

2020 ◽  
Vol 35 (11) ◽  
pp. 1751-1766
Author(s):  
Changhyun Park
Keyword(s):  
Market Entry ◽  
Entry Mode ◽  
Performance Outcomes ◽  
High Tech ◽  
Entry Modes ◽  
Content Type ◽  
Entry Strategies ◽  
Entry Timing ◽  
And Migration ◽  
Successive Generations

Purpose The purpose of this study is to explore market entry strategies in a high-tech successive generations (HTSGs) market, by investigating entry mode via entry timing and path differentiation and the performance outcomes of entry mode. Design/methodology/approach The methodology of building a theory from a longitudinal case study is adopted by using useful cases in a HTSGs market after constructing an integrated research framework to explore market entry mode. Different entry modes were investigated by studying entry timing and migration path of three firms’ case in logic semiconductor market. In addition, performance outcomes of different entry modes were measured and correlated with each other. Findings The results identified three major entry modes suitable for a HTSGs market. The three firms differentiated their entry modes by exploiting different entry timings from the earliest to the last and different migration paths including switching, leapfrogging and new entrance path to enter a market. First mover advantage also exists in a HTSGs market, and it was found uniquely that the financial performance denoted by entry mode outcomes was correlated with technological knowledge. Research limitations/implications This study extends the theory of extant entry strategy from general consumer or industrial market to HTSGs market, in which intense competition exits and technological innovation is important. Moreover, this study verified that the causality between early entry and positive performance was also effective in HTSGs market with a shorter duration of early entry advantage. Practical implications This study has managerial implications for firms to establish market entry strategy in HTSGs market and other markets. To become a product leader, a fast follower or a late follower, firms can differentiate their entry mode by adjusting the entry timing and migration path in the context of market and technology. Originality/value This study examined market entry strategies suitable for HTSGs market based on its unique characteristics and extended relevant theory into HTSGs market. Further, an integrated research framework, which explores the market entry mode, was constructed to facilitate further exploration of entry mode into other markets.

Going global in groups: a relevant market entry strategy?

2017 ◽  
Vol 27 (1) ◽  
pp. 93-111 ◽  
Author(s):  
Gilmar Masiero ◽  
Mario Henrique Ogasavara ◽  
Marcelo Luiz Risso
Keyword(s):  
Interest Rates ◽  
Market Entry ◽  
Weighted Average ◽  
Chinese Government ◽  
Entry Modes ◽  
Host Countries ◽  
African Countries ◽  
Relevant Market ◽  
Content Type ◽  
Economic Zones

Purpose The purpose of this paper is to identify whether the new Chinese phenomenon of going global in groups represents a more advantageous market entry mode than the phenomena considered in previous studies. Design/methodology/approach In this empirical research paper, the authors draw upon the literature in academic journals and books regarding the Chinese special economic zones overseas to analyze and compare collective internationalization (i.e. going global in groups) with traditional market entry modes as per the ownership, location and internalization paradigm (OLI) and transaction cost approach (TCA). Findings The authors identified that financial and diplomatic support provided by the Chinese Government has reinforced internationalization in groups, thereby minimizing some structural risks in host countries. Pre-operational and operating costs have been lowered or shared among group members, and weighted average cost of capital has dropped due to the availability of specific funding lines with subsidized interest rates. Research limitations/implications Given the lack of available literature on the topic, the authors based their study of the collective internationalization of Chinese firms on very few cases, most of which represent market entry in African countries. Practical implications The study calls attention to a new, more efficient and less risky characteristic of international entry modes, which implies that companies can reap multiple benefits by entering markets in global groups. Originality/value As literature addressing market entry modes focuses mostly on individual enterprises, this paper contributes to the identification of advantages in collective internationalization.

scholarly journals Perceptions of justice and organisational commitment in international mergers and acquisitions

2017 ◽  
Vol 34 (5) ◽  
pp. 582-605 ◽  
Author(s):  
Emanuel Gomes ◽  
Kamel Mellahi ◽  
Sunil Sahadev ◽  
Amy Harvey
Keyword(s):  
Mergers And Acquisitions ◽  
Market Entry ◽  
Strong Association ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Organisational Commitment ◽  
Entry Modes ◽  
Content Type ◽  
Cross Border ◽  
And Performance

Purpose Although there is substantial and accumulating evidence on the link between market entry modes and performance, evidence regarding their impact on employee’s perceptions and thereby their commitment is scarce. This is more so in mergers and acquisitions (M&As) where employee’s commitment has a significant impact on post-entry performance. The purpose of this paper is to examine the association between perceptions of justice and organisational commitment in cross-border M&As. Design/methodology/approach The authors draw on market entry and M&As’ literature and studies on the link between perception of justice and commitment to develop the hypotheses. The authors test the hypotheses with survey data from a merger of two culturally different partners – British and Japanese. A total of 128 responses were received, out of a sample of 151 non-managerial employees within the firm. Findings The results show a strong association between employees’ perceptions of justice during the merger and commitment to the new organisation. Surprisingly, the results do not support the widely reported interaction effects between different organisational justices and employees’ commitment. Research limitations/implications Obtaining data from a single M&A is a potential limitation of this study. Practical implications The study underscores the importance of post-market entry. The results suggest that particular attention needs to be paid to the way employees of the acquired firm are treated during their interactions with their counterparts. Originality/value The link between market entry and performance is well documented. However, little progress has been made in understanding the antecedents/factors that influence commitment in foreign market entry and in particular cross-border M&As. This study helps close this gap.

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