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

Author

Listed:
  • Kausar Yasmeen

    (School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia)

  • Kuperan Viswanathan

    (School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia)

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

Suggested Citation

  • Kausar Yasmeen & Kuperan Viswanathan, 2016. "Entry Mode of Firms in an Emerging Economy: Evidence from Malaysia," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 666-670.
    • Handle: RePEc:eco:journ1:2016-02-41
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    More about this item

    Keywords

    Entry Mode; Firms; Country-Specific Factors; Emerging Economy;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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