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Firm competencies on market entry success: Evidence from a high-tech industry in an emerging market

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  • Wang, Kung-Jeng
  • Lestari, Yuliani Dwi

Abstract

This study explores the effects of three firm competencies, namely, business network, new product development (NPD), and marketing management on market entry success of a high-tech industry in an emerging market. Business network encompasses research and development (R&D) partnership, inter-organizational network, and government relationship (guanxi). NPD consists of R&D capability and product process innovation, while marketing management encompasses distribution channel, promotion, branding, and information management. Using data from 55 biopharmaceutical multinational companies in China, this study applies structural equation modeling technique with confirmatory factor analysis for testing and estimating relationships. We find that only marketing directly influences entry success, whereas the other two yield indirect effects. Our study also suggests the critical role of business network as a prerequisite for entry process. Simultaneously, NPD serves as the driving force of marketing through the creation of product competitiveness.

Suggested Citation

  • Wang, Kung-Jeng & Lestari, Yuliani Dwi, 2013. "Firm competencies on market entry success: Evidence from a high-tech industry in an emerging market," Journal of Business Research, Elsevier, vol. 66(12), pages 2444-2450.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:12:p:2444-2450
    DOI: 10.1016/j.jbusres.2013.05.033
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    5. Ju, Wei & Zhou, Xiaohu & Wang, Shuaibin, 2019. "The impact of scholars’ guanxi networks on entrepreneurial performance—The mediating effect of resource acquisition," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 9-17.
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    9. Małgorzata Stefania Lewandowska & Tomasz Gołębiowski & Maja Szymura-Tyc & Małgorzata Rószkiewicz, 2017. "Komplementarność innowacji a eksport nowych produktów," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 95-117.
    10. William E. Baker & Amir Grinstein & Marcelo G. Perin, 2020. "The Impact of Entrepreneurial Orientation on Foreign Market Entry: the Roles of Marketing Program Adaptation, Cultural Distance, and Unanticipated Events," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 63-91, March.
    11. Halberstadt, Jantje & Kollhoff, Sophia & Kraus, Sascha & Dhir, Amandeep, 2022. "Early bird or early worm? First-mover (dis)advantages and the success of web-based social enterprises," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    12. Dejin Su & Qixia Du & Dongwon Sohn & Libo Xu, 2017. "Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi ? The Moderating Effects of Environmental Turbulence," Sustainability, MDPI, vol. 9(1), pages 1-17, January.
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    14. Lewandowska, Małgorzata Stefania & Szymura-Tyc, Maja & Gołębiowski, Tomasz, 2016. "Innovation complementarity, cooperation partners, and new product export: Evidence from Poland," Journal of Business Research, Elsevier, vol. 69(9), pages 3673-3681.
    15. Huang, Weixiang & Sang, Qingyuan & Zhou, Wenhui & Zhu, Han, 2024. "Challenge or opportunity? Impact of a two-invoice mechanism on pharmaceutical supply chains with channel promotion," International Journal of Production Economics, Elsevier, vol. 270(C).
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    17. Luca Pennacchio & Giuseppe Piroli & Otello Ardovino, 2018. "The Role of R&D Cooperation in Firm Innovation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-27, February.
    18. Wang, Kung-Jeng & Lee, Kun-Shan & Liao, Jia-Hong, 2019. "Technology cooperation modeling of multiple profit-centered business units: A system dynamics framework," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 162(C), pages 195-220.
    19. Graham White & Natalia Vila, 2017. "Entrepreneurial Orientation’s effect on marketing strategies and success: implications for US firms entering Cuba," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 501-523, June.

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