IDEAS home Printed from https://ideas.repec.org/a/taf/jmedec/v17y2004i1p35-50.html
   My bibliography  Save this article

Acquisitions or Joint Ventures: Foreign Market Entry Strategy of U.S. Advertising Agencies

Author

Listed:
  • Jaemin Jung

Abstract

This article examines the preferred foreign entry mode and region of U.S.-based advertising agencies by analyzing all cross-border acquisitions and joint ventures completed from 1981 to 2001. In addition, based on the transaction cost theory, the impact of host country risk and cultural distance on the choice of entry mode was tested with a binomial logistic regression model. Although the frequency of acquisitions was approximately three times greater than that of joint ventures, U.S. agencies primarily set up joint ventures in the Asian countries. Two hypotheses depicting the environmental factors revealed significant results; that is, U.S. agencies preferred joint ventures to acquisitions when the host country is culturally more distant from the United States and politically, financially, or economically riskier. The results are of interest in understanding not only advertising agencies specifically but also useful in considering foreign entry strategy by all media companies.

Suggested Citation

  • Jaemin Jung, 2004. "Acquisitions or Joint Ventures: Foreign Market Entry Strategy of U.S. Advertising Agencies," Journal of Media Economics, Taylor & Francis Journals, vol. 17(1), pages 35-50.
    • Handle: RePEc:taf:jmedec:v:17:y:2004:i:1:p:35-50
    DOI: 10.1207/s15327736me1701_3
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1207/s15327736me1701_3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1207/s15327736me1701_3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Silk Alvin J. & Berndt Ernst R., 2004. "Holding Company Cost Economies in the Global Advertising and Marketing Services Business," Review of Marketing Science, De Gruyter, vol. 2(1), pages 1-51, June.
    2. Ting Liu & Ye Huang, 2024. "The influence of subnational corruption on the conversion of foreign proprietorship: Stumbling block or lubricant? Evidence from Sino-foreign joint ventures," Asia Pacific Journal of Management, Springer, vol. 41(1), pages 135-170, March.
    3. Canabal, Anne & White III, George O., 2008. "Entry mode research: Past and future," International Business Review, Elsevier, vol. 17(3), pages 267-284, June.
    4. Burçak Polat, 2017. "FDI entry mode choice and ownership structure in Turkish market: A firm-level analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1283762-128, January.
    5. Zengyu Huang & Xia Han & Frank Roche & John Cassidy, 2011. "The Dilemma Facing Strategic Choice of Entry Mode," Global Business Review, International Management Institute, vol. 12(2), pages 181-192, June.
    6. Cleeve, Emmanuel A. & Debrah, Yaw & Yiheyis, Zelealem, 2015. "Human Capital and FDI Inflow: An Assessment of the African Case," World Development, Elsevier, vol. 74(C), pages 1-14.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jmedec:v:17:y:2004:i:1:p:35-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/HMEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.