Locational Factors and Foreign Market-entry Considerations for Malaysian Contractors

Past studies on contractor internationalisation adopt a unimodelapproach. Taking up the call of a few scholars, a study isconducted, this time by integrating several extant models of fi rminternationalisation. Malaysian international contractors are usedto test this approach. Due to space limitation, this paper is focusedonly on locational factors. It begins by justifying the inclusion oflocational factors in a multi-model approach. Then it posits thatlocational disadvantage is a more intellectually appealing conceptthan locational advantages. Empirically, it shows that the surveyedcontractors evaluate a wide range of factors before making thego/no go decision to enter foreign markets. It also shows thatpsychic distance was not their major concern. Finally, the locationaldisadvantages create a market space for international contractorswith the tenacity to overcome them, which the sampled populationpossessed.

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Barriers to enter in foreign markets: evidence from SMEs in emerging market

International Marketing Review ◽

10.1108/imr-10-2014-0322 ◽

2017 ◽

Vol 34 (1) ◽

pp. 68-86 ◽

Cited By ~ 25

Author(s):

Mahfuzur Rahman ◽

Moshfique Uddin ◽

George Lodorfos

Keyword(s):

Developing Country ◽

Market Entry ◽

Emerging Market ◽

Foreign Market ◽

Partial Least Square ◽

Foreign Market Entry ◽

Barriers To Entry ◽

Foreign Markets ◽

Content Type ◽

Economic Barriers

Purpose Foreign market entry is considered as a key strategy to grow and survive over longer period of time for small and medium enterprises (SMEs). The decision to enter a foreign market is not a straightforward story. Considering resource limitation, SMEs need to analyse the key barriers to entry in foreign markets very carefully. The purpose of this paper is to identify these barriers for the SMEs in a developing country. Design/methodology/approach This study has used primary data collected through questionnaires from 212 Bangladeshi SMEs. A mixed method data analysis technique is used to analyse the firms both from micro- and macro-levels. Following the running example-based case study approach, this study has developed and validated a partial least square-based structural model to assess the key barriers to entry in foreign markets. Findings This study has identified the key socio-economic barriers faced by the SMEs in a developing country to enter in foreign markets. It has successfully framed the socio-economic barriers to enter in foreign markets for Bangladeshi SMEs as a second-order hierarchical model. Originality/value It is often believed that foreign market entry is more affected by social barriers as explained by the existing theories including the Uppsala model. This study, however, revealed that the international market expansions of SMEs in developing countries are more sensitive to the economic barriers.

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Effectuation and foreign market entry of entrepreneurial firms

European Journal of Marketing ◽

10.1108/ejm-11-2013-0630 ◽

2015 ◽

Vol 49 (9/10) ◽

pp. 1436-1459 ◽

Cited By ~ 53

Author(s):

Sylvie Chetty ◽

Arto Ojala ◽

Tanja Leppäaho

Keyword(s):

Decision Making ◽

Market Entry ◽

Foreign Market ◽

Foreign Market Entry ◽

Decision Making Process ◽

Entrepreneurial Firms ◽

Internationalization Process ◽

Foreign Markets ◽

Content Type ◽

Original Field

Purpose – The purpose of this study is to examine the decision-making process for entrepreneurial firms when entering foreign markets and how and why they entered those markets. Design/methodology/approach – A nascent theory in entrepreneurship called effectuation is combined with internationalization process theory as the conceptual framework to study decision-making under uncertainty. The central concept in both these theories is relationships and how they can be used to gain knowledge and thus reduce uncertainty and in the case of effectuation to co-create opportunities to enter foreign markets. The research design involves a multiple case study of software firms from Finland and New Zealand. Findings – It was found that entrepreneurs differentiate between foreign market selection and foreign market entry during their internationalization process, potentially using different decision-making processes in them. They tend to interweave effectuation and causation logics as substitutes in their decision-making. Uncertainty during foreign market entry is not always a barrier because it can provide opportunities depending on the logic used. In addition, there is evidence that entrepreneurs who have existing relationships in foreign markets tend to use effectuation to select and enter foreign markets. Originality/value – This paper transposes effectuation from its original field of entrepreneurship research to the context of internationalizing entrepreneurial firms. Consequently, it contributes toward understanding the decision-making process for selecting and entering foreign markets.

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Internationalisation processes: an analytical framework

Revista de Administração Contemporânea ◽

10.1590/s1415-65552003000200008 ◽

2003 ◽

Vol 7 (2) ◽

pp. 137-156 ◽

Cited By ~ 1

Author(s):

Sérgio Fernando Loureiro Rezende

Keyword(s):

Host Country ◽

Market Entry ◽

Empirical Studies ◽

Entry Mode ◽

Institutional Arrangement ◽

Foreign Market ◽

Analytical Framework ◽

Foreign Market Entry ◽

Foreign Markets ◽

Subsidiary Development

In this article we propose a framework for analysing internationalisation processes, manifested through a sequence of servicing modes. A servicing turn is, in turn, the institutional arrangement whereby firms operate in foreign markets. The framework borrows conceptual notions from the literature on foreign market entry, internationalisation and subsidiary development. Three implications for empirical studies are subsequently suggested. First, it is argued that internationalisation processes should be analysed in light of intra and inter-organisational relationships embedded in distinct spatial and temporal contexts. Secondly, the framework takes into account not only incremental but also discontinuous internationalisation processes. Thirdly, it is proposed that internationalisation processes are endless phenomena and, therefore, should consider sequences of servicing modes that take place in the foreign market where the entry mode is originally embedded as well as in foreign markets reached from the initial host country.

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The Influence of Firm Characteristics on the Relationship between Foreign Market Entry Strategies and Financial Performance of Listed Multinational Firms in Kenya

European Journal of Business Management and Research ◽

10.24018/ejbmr.2020.5.3.332 ◽

2020 ◽

Vol 5 (3) ◽

Author(s):

Christine Ooko ◽

Martin Ogutu ◽

Mercy Munjuri ◽

Jeremiah Kagwe

Keyword(s):

Financial Performance ◽

Market Entry ◽

Multinational Firms ◽

Foreign Market ◽

Foreign Market Entry ◽

Firm Characteristics ◽

Foreign Markets ◽

Entry Strategies ◽

The Right ◽

The Relationship

The main objective of this study was to establish the influence of firm characteristics on the relationship between foreign market entry strategies and the financial performance of multinational firms in Kenya. The study was hinged on Resource-Based View as a theoretical foundation. The literature revealed that numerous studies had been conducted on the influencing factors of firm characteristics such as Size and Age on the financial performance of multinational firms. However, these studies did not put into consideration of other possible factors such as firm characteristics and indicators such as liquidity and leverage. More so, the studies did not consider firm characteristics as a possible influencer of the direct relationship between choice of entry strategies and financial performance of multinational firms. The study utilized a cross-sectional study design which adopted both analytical and descriptive type of studies. Secondary data was used to obtain the desired information from the multinational firms’ annual reports for the financial years 2017, 2016, 2015, and 2014. The study focused on only the publicly listed multinational firms in the Nairobi Security Exchange. Data were obtained from all the 62 listed firms. The study used Sales Growth, ROA, ROE, and ROCE to measure financial performance. Age, Liquidity, and Leverage were used as indicators of firm characteristics with leverage and liquidity further measured as Debt-Equity ratio and Current Assets Ratio respectively. Foreign market entry strategies were measured using Franchising, wholly-owned subsidiaries, Acquisition, and Joint Ventures. The results of the study showed that an interaction between firm characteristics and foreign market entry strategy significantly affected the direct relationship between foreign market entry strategies and the financial performance of multinational firms. The study concludes that firm characteristics have a positive effect on the financial performance of multinational firms through the influence of their choice of entry into foreign markets. It is recommended that multinational firms with desires to expand globally should use their global footprint to maximize on their international operations through leverage activities. In addition, policies governing the liquidity of companies to be revised in order to increase financial performance if previously they affected it. For the study was only limited to the publicly listed multinational institutions, future researchers should consider studying all the multinational firms operating in Kenya. The study provided a contextual understanding of the Resource-Based View. This theory tried to bring in views on choosing the right entry strategy into foreign markets based on the familiarity or unfamiliarity of a foreign market setting given the resources available to a firm. Findings also provided key ingredients for policymakers to embark on an integrated policy formulation in the full understanding of the interplay of a firm’s unique characteristics as far as multinational firms are concerned. And in practice, global business management should be in a better position to identify the right entry strategies into new markets that would yield them great financial profits.

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Founders’ Prior Shared International Experience, Time to First Foreign Market Entry, and New Venture Performance

Journal of Management ◽

10.1177/01492063211029701 ◽

2021 ◽

pp. 014920632110297

Author(s):

Giuseppe Criaco ◽

Lucia Naldi ◽

Shaker A. Zahra

Keyword(s):

Market Entry ◽

New Ventures ◽

Foreign Market ◽

International Experience ◽

Foreign Market Entry ◽

New Venture ◽

Foreign Markets ◽

Early Internationalization ◽

Diverse Groups ◽

First Time

We examine the influence of founders’ prior shared international experience on the timing of their new ventures’ first entry into foreign markets. We propose that this experience, which is gained by founders working concurrently for the same international firm prior to the founding of the current company, provides them with shared knowledge and routines that they can use to enter foreign markets for the first time earlier in the venture’s life. Further, we propose that founders’ diversity strengthens this relationship, because diverse groups of founders have a broader range of knowledge, skills, and perspectives, which facilitates the adaptation of their prior shared international experience to their new venture setting. This is likely to further reduce the time it takes them to enter foreign markets for the first time. We also argue that industry dynamism weakens the relationship between founders’ prior shared international experience and the time to first foreign market entry, because this type of experience is likely to become obsolete in a rapidly changing environment. Finally, we hypothesize that early internationalizers enjoy higher performance than late internationalizers. We test these predictions using a sample of Swedish new ventures. Our results contribute to the literatures on founders’ shared experience and early internationalization.

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A Risky Mode Of Foreign Market Entry: International Portfolio Investments

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v8i8.746 ◽

2010 ◽

Vol 8 (8) ◽

Author(s):

Ulku Yuksel ◽

Asli Yuksel-Mermod

Keyword(s):

Market Entry ◽

Foreign Market ◽

Point Of View ◽

Foreign Market Entry ◽

Entry Modes ◽

Foreign Markets ◽

Investment Style ◽

Financial Investments ◽

International Portfolio ◽

Portfolio Investments

There are various forms of entrance into foreign markets, varying in magnitude and direction of risks which may endanger either the investor or the host country. Some of the foreign market entry modes involve just financial investments with almost no risks, such as international portfolio investments, whilst others require an additional commitment from the investor’s part. This two-fold investment style; that is, money only versus money plus varied amounts of dedication, makes up the magnitude of the risk involved. While the former (money on shares only) may be considered unconventional, the latter (i.e., money plus commitment) entails traditional modes of foreign market entry. This study examines international portfolio investments, also called hot money, as a viable and unconventional foreign market entry alternative, triggered by the forces of globalization. Accordingly, the authors’ point of view indicates a departure from conventional foreign market entry mode literature and draws on the resource based view (RBV) and eclectic theory of internationalization.

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