Impact of firm-level factors and market entry mode on performance: A study of service MNCs in an emerging economy

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.

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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

Journal of Business Economics and Management ◽

10.3846/16111699.2011.573270 ◽

2011 ◽

Vol 12 (2) ◽

pp. 301-316 ◽

Cited By ~ 6

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.

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Foreign market entry mode choice of hotel companies: Determining factors

International Journal of Hospitality Management ◽

10.1016/j.ijhm.2016.12.008 ◽

2017 ◽

Vol 62 ◽

pp. 111-119 ◽

Cited By ~ 8

Author(s):

Rosario Andreu ◽

Enrique Claver ◽

Diego Quer

Keyword(s):

Market Entry ◽

Mode Choice ◽

Entry Mode ◽

Foreign Market ◽

Foreign Market Entry ◽

Entry Mode Choice ◽

Determining Factors ◽

Foreign Market Entry Mode

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Overcoming African institutional voids: market entry with networks

European Business Review ◽

10.1108/ebr-01-2018-0029 ◽

2019 ◽

Vol 31 (3) ◽

pp. 304-316 ◽

Cited By ~ 1

Author(s):

Kerry Chipp ◽

Albert Wocke ◽

Carola Strandberg ◽

Manoj Chiba

Keyword(s):

Emerging Markets ◽

Strategic Alliances ◽

Market Entry ◽

Business Groups ◽

Institutional Voids ◽

Dominant Form ◽

Firm Level ◽

Content Type ◽

Case Examples ◽

Mode Of Entry

Purpose Literature on modes of entry has focussed on firm-level strategies. The predominant theories used are institutional theory and the resource-based view. Using an alternate approach – network theory – this paper aims to demonstrate an additional mode of entry: multiple firms entering together as an extension of an existing loose network, known as a bridging network. The extension of an external network across borders is an appropriate mode of entry in emerging markets, with no pre-existing networks or existing networks within a market that are weak, immature or missing. Design/methodology/approach A conceptual review, which develops four propositions, demonstrating that market entry with bridging networks may be the preferred mode of entry in the presence of institutional voids. Alternative modes may not be viable because of costs and risks associated with overcoming such voids. Findings Existing theory and case examples support the contention that market conditions facilitate firms to enter as networks rather than as singular entities. These conditions are found in markets with institutional voids and explain the dominant form of business groups in many countries and the operation of loose strategic alliances in emerging markets. Network entry facilitates market access speed may allow for local ties to remain undeveloped or be a first step in building in-country networks. Originality/value This paper heeds to the call for a network ecosystem approach to market entry, arguing that firms may enter as a collective in subsistence and emerging markets, which would explain the preponderance of business groups and loose alliances found.

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