In this project, we will study the entry mode strategies and the effect of culture on Foreign companies. This report raises a new question about the connection between cultural distance and entry mode performance. Past research has identified a connection between entry mode choice and performance. Others have indicated a relationship between national culture and the entry mode choice. In this report we look into whether cultural distance and entry mode choice have an impact on foreign subsidiary performance. Furthermore we hypothesize that there could be an interaction effect between entry mode and cultural distance, i.e. it may be better for an organization from a culturally distant nation to use one particular entry mode over another. We discover that the entry mode and cultural distance don’t have any considerable influence on subsidiary performance. On top of that, we were unable to establish an impact of cultural distance on the overall performance of foreign subsidiaries with respect to the mode of entry.
How to Craft a Winning Market Entry Strategy
Contents
1 INTRODUCTION
1.1 RESEARCH PURPOSE
1.2 DELIMITATIONS
1.3 STRUCTURE
2 THEORETICAL REVIEW AND HYPOTHESES DEVELOPMENT
2.1 BACKGROUND
2.1.1 Driving Forces Behind Internationalization
2.1.4 Different Modes of Foreign Market Entry
2.2 HYPOTHESIS DEVELOPMENT
2.2.1 Entry Mode Performance
2.2.2 Contingency Theory
2.2.3 Experience and Market Knowledge
2.2.3 Cultural Distance
2.3 OTHER INFLUENTIAL FACTORS
2.3.1 Firm Specific Advantages
2.3.2 Firm Size
2.3.3 Industry Growth
2.3.4 Market Imperfections
2.4 HYPOTHESES REVIEW
3 DATA AND METHODOLOGY
3.1 DATA
3.2 ANALYTICAL APPROACH
3.2.1 Industry
3.2.2 Country
3.2.3 Liability of Newness
3.2.4 The Final Data Set
3.3 THE MODEL
3.3.1 Performance Measures
3.3.2 Dependent Variables
3.3.4 Explanatory Variables
3.3.5 Control Variables
3.3.6 Regression Models
3.3.7 Predicted Signs and Decision Rule
3.4 RESEARCH QUALITY
4 EMPIRICAL RESULTS AND ANALYSIS
4.1 RESULTS
4.2 ANALYSIS
4.3 LIMITATIONS
5 CONCLUSION
6 REFERENCES………..
Source: Stockholm School of Economics