Timing of Entry in International Market: An Empirical Study of U.S. Fortune 500 Firms in China

Vibha Gaba, Yigang Pan and Gerardo R Ungson
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Vibha Gaba: University of Oregon
Yigang Pan: York University and University of Hong Kong
Gerardo R Ungson: San Francisco State University

Journal of International Business Studies, 2002, vol. 33, issue 1, 39-55

Abstract: This study attempts to explain the timing of entry of firms in international markets. Based on the existing literature, we propose a framework that consists of firm-specific factors, industry/market factors, and host country factors. Empirical results, based on the entry information of U.S. Fortune 500 firms in China between 1979 and 1996, show that larger firms with greater level of internalization and scope economies are likely to enter this foreign market earlier. In addition, non-equity modes, competitors' behavior in the product market, and lower levels of country risk are significantly associated with early entry.© 2002 JIBS. Journal of International Business Studies (2002) 33, 39–55

Date: 2002
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