Influence of Country Factors on Entry Mode Through Knowledge and Transactional Cost Economics: Market Entry: Evidence from Construction Firms

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, 2017, vol. 7, issue 3, 581-585

Abstract: Owing to the competition global level economy of world and pattern are promoting to the construction firms to increase into emerging economies. Entry mode has become important for firms. The present paper aims to explore the entry modes which are preferred by construction firms in Malaysia, for their international projects, on whether construction firms choose equity modes, non-equity modes or both modes. 19 questionnaires were filled by respondents by using cross-sectional data technique. This study found that country specific factors (cultural differences and target country risk) influence the entry mode of firms directly and through knowledge and transactional cost economics by applying the multinomial logistic regression. This study contributes theoretically and practically along with this; present study recommends that government should improve internal and external factors to enter the firms for economic development.

Keywords: Entry Mode; External Factors; nternal Factors Emerging Economy (search for similar items in EconPapers)
JEL-codes: M M21 M5 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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