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Strategy and Market Entry
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Strategy and Market Entry
An increase in global industrial competition makes the
choice of market entry an essential decision for multinationals. In the article
"Strategic orientation and the choice of foreign market entry mode: An empirical
examination," Xin Liang, Martina Musteen, and Deepak Datta (2009) examined
the effects of business strategy on market entry modes. While the journal
provided significant results showing strategic orientations influence market
entry decisions, it is constrained by its over-reliance on archival data.
The article studied an important topic, and concluded that entry into foreign markets relies on the business orientations of an organization. Liang, Mesteen, and Datta (2009) postulated that prospectors are more inclined to use equity-oriented entry approaches while defenders favor shared-ownership tactics. According to the researchers, prospectors emphasize on full-ownership methodologies as a result of having significant proprietary insight as opposed to defenders who opt for risk-averse methods as they lack prior knowledge regarding an international market. Findings of this article will, therefore, be of importance to strategic management and international business...
