Determinants of international entry mode choice: A case study of a Brazilian multinational
Abstract
The process of decision making on the mode of entry is a complex issue in international business because of the many factors involved, and also the impact that such a decision could imply to a firm’s performance in the external market. Despite the existence of several studies on the mode of entry, much of it is focused on the analysis of developed countries or specific cases of emerging Asian economies. So little is known about entry modes adopted by Brazilian multinational companies in foreign markets. Thus, the present study aims to investigate the determinants of the choice of entry mode in the case of a Brazilian multinational. The contribution of this study is to analyze the case of a Brazilian multinational using an eclectic approach based on Peng’s (2009) “Strategy Tripod”, which includes three sets of factors: the company’s resources, institutions and industry. Based on a case study with a qualitative approach, the results showed that all dimensions of the Tripod Strategy were relevant, with special emphasis on the role of networks as a determining factor in the choice of mode of entry into foreign markets.
Key words: International Entry Mode, Emerging Market Multinationals, Internationalization.
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