TY - JOUR
T1 - Market entry mode selection
T2 - The experience of small Hong Kong firms investing in China
AU - Shi, Yi Zheng
AU - Ho, Po Yuk
AU - Siu, Wai Sum
N1 - Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 2001
Y1 - 2001
N2 - This study follows an eclectic approach to investigate the foreign market entry strategies of small firms from Hong Kong. Previous researches focused on large corporations from developed countries and tackled the issue of entry mode from a single theoretical perspective. This article, however, develops a framework that integrates strategic, firm-specific, location-specific, and transaction-specific variables, and redresses the topic of entry mode selection by the newly industrializing economies (NIEs) in East Asia. Guided by this framework, questionnaire survey and intensive firm interviews are conducted. The results show that the entry selection of the sample small Hong Kong firms is determined mainly by strategic, firm-specific, and location-specific variables, whilst firm-specific ownership advantages are less important. Therefore, in order to explain the entry mode decision by the small firms of NIEs investing in their neighbouring regions, the eclectic framework is useful but has to be modified to include the unique characteristics of investing firms from NIEs and the specific investment environment of host developing countries, such as China.
AB - This study follows an eclectic approach to investigate the foreign market entry strategies of small firms from Hong Kong. Previous researches focused on large corporations from developed countries and tackled the issue of entry mode from a single theoretical perspective. This article, however, develops a framework that integrates strategic, firm-specific, location-specific, and transaction-specific variables, and redresses the topic of entry mode selection by the newly industrializing economies (NIEs) in East Asia. Guided by this framework, questionnaire survey and intensive firm interviews are conducted. The results show that the entry selection of the sample small Hong Kong firms is determined mainly by strategic, firm-specific, and location-specific variables, whilst firm-specific ownership advantages are less important. Therefore, in order to explain the entry mode decision by the small firms of NIEs investing in their neighbouring regions, the eclectic framework is useful but has to be modified to include the unique characteristics of investing firms from NIEs and the specific investment environment of host developing countries, such as China.
UR - http://www.scopus.com/inward/record.url?scp=0035718543&partnerID=8YFLogxK
U2 - 10.1080/713999128
DO - 10.1080/713999128
M3 - Journal article
AN - SCOPUS:0035718543
SN - 1360-2381
VL - 8
SP - 19
EP - 41
JO - Asia Pacific Business Review
JF - Asia Pacific Business Review
IS - 1
ER -