Entry Mode
Choice of Foreign Market Entry Mode
Cognitions from Empirical and Theoretical Studies
Xuemin Zhao and Reinhold Decker
Dr. Reinhold Decker is Professor of Marketing at the Department of Economics and Business Administration of the University of Bielefeld P. O. Box 10 01 31 D-33501 Bielefeld Germany Phone: +49-(0)521-106-6913 / 3936 Fax: +49-(0)521-106-6456 E-Mail: rdecker@wiwi.uni-bielefeld.de Xuemin Zhao is Ph.D. student of the Graduate School for Economics and Management at the University of Bielefeld (BiGSEM) P.O. Box 10 01 31 D-33501 Bielefeld Germany Phone: +49-(0)521-106-4863 Email: xzhao@wiwi.uni-bielefeld.de
Acknowledgement: We would like thank our colleagues Prof. Dr. Herbert Dawid and Prof. Dr. Stefan Wielenberg, Department of Economics and Business Administration at the University of Bielefeld, for interesting discussions and comments with regard to the topic of this paper.
1
Choice of Foreign Market Entry Mode
Cognitions from Empirical and Theoretical Studies
Abstract
This paper analyzes critically five basic theories on market entry mode decision with respect to existing strengths and weaknesses and the results of corresponding empirical studies. Starting from conflictions both in theories and empirical studies dealing with the entry mode choice problem we motivate a significant need of further research in this important area of international marketing. Furthermore we provide implications for managers in practice and outline emerging trends in market entry mode theory as well as possible starting points for future research. Keywords: Market entry mode choice; Existing theories and empirical studies; Conflictions; Implications and future challenges.
1.
Choice of market entry mode – a critical issue in international marketing
The interest in market entry mode choice originates from the theory of international investment. It was studied as a problem with distinctive feature, extent, form and pattern of international production
Cognitions from Empirical and Theoretical Studies
Xuemin Zhao and Reinhold Decker
Dr. Reinhold Decker is Professor of Marketing at the Department of Economics and Business Administration of the University of Bielefeld P. O. Box 10 01 31 D-33501 Bielefeld Germany Phone: +49-(0)521-106-6913 / 3936 Fax: +49-(0)521-106-6456 E-Mail: rdecker@wiwi.uni-bielefeld.de Xuemin Zhao is Ph.D. student of the Graduate School for Economics and Management at the University of Bielefeld (BiGSEM) P.O. Box 10 01 31 D-33501 Bielefeld Germany Phone: +49-(0)521-106-4863 Email: xzhao@wiwi.uni-bielefeld.de
Acknowledgement: We would like thank our colleagues Prof. Dr. Herbert Dawid and Prof. Dr. Stefan Wielenberg, Department of Economics and Business Administration at the University of Bielefeld, for interesting discussions and comments with regard to the topic of this paper.
1
Choice of Foreign Market Entry Mode
Cognitions from Empirical and Theoretical Studies
Abstract
This paper analyzes critically five basic theories on market entry mode decision with respect to existing strengths and weaknesses and the results of corresponding empirical studies. Starting from conflictions both in theories and empirical studies dealing with the entry mode choice problem we motivate a significant need of further research in this important area of international marketing. Furthermore we provide implications for managers in practice and outline emerging trends in market entry mode theory as well as possible starting points for future research. Keywords: Market entry mode choice; Existing theories and empirical studies; Conflictions; Implications and future challenges.
1.
Choice of market entry mode – a critical issue in international marketing
The interest in market entry mode choice originates from the theory of international investment. It was studied as a problem with distinctive feature, extent, form and pattern of international production
References: TCA model and extensions Anderson and Gatignon (1986); Hill et al OC model Aulakh and Kotabe (1997); Madhok (1998) Root (1994); Young et al. (1989); Kumar and Subramaniam (1997) Behavior theory, contingency theory, and some others