Entry Mode of Firms in an Emerging Economy: Evidence from Malaysia

Kausar Yasmeen and Kuperan Viswanathan
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Kausar Yasmeen: School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia
Kuperan Viswanathan: School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 2, 666-670

Abstract: The dynamics of the global competition patterns and world economy are encouraging construction firms to expand into emerging economies. Entry modes and its predictors have been the subjects of interest in international market strategic management research which is nonetheless lacking in the construction firms. This paper seeks to identify the entry modes preferred by construction firms in Malaysia, on whether they choose equity modes, non-EQ modes or both modes for their international projects. The cross-sectional data was collected by distributing 119 questionnaires; the response rate was 53%. By applying multinomial logit model, this study validates the proposition that entry mode selection in an emerging economy is significantly influenced by situational contingencies at three levels of country-specific factors (CSFs) which are government intervention, property right and environmental uncertainty. Entrepreneurial skill (ES) is the predictor of entry mode. The effect of the CSF and ES on entry mode of construction firms depend on a level of ES. This study contributes to the international market strategic management choice of entry mode

Keywords: Entry Mode; Firms; Country-Specific Factors; Emerging Economy (search for similar items in EconPapers)
JEL-codes: M M21 M5 (search for similar items in EconPapers)
Date: 2016
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