Globalization and its Importance
Question:
What are the most effective entry modes that international companies should select and implement to Turkish market?
We are living in the era of globalization which changes rapidly and it is a human nature to live with such phenomena. Globalization could be seen as a continuous process which helps the organization or individuals to make new ideas, competition, practices, identities, movements and values. Globalization could lead to different situations which depend on the individual and organization perspective. The topic of entry mode has been discussed through many researchers in their article and they describe that it is significant for the companies to diversify their market so that the profitability of company could enhance and the customer base could also be wider.
The researchers describe – çok fazla “describe” kelimesi kullanm??s?n, e? anlaml?lar?n? da kullan – that there are various ways for a company to enter into the international market and offer its product and services to the foreign clients. This process enhances the goodwill of the company in international market. It has also been analyzed that entry mode of manufacturing company becomes quite easy now days but still the entry of service companies are less in comparison of manufacturing companies (Brouthers and Hennart, 2007). Entry mode must be investigated properly before entering into a market so that the best decision could be made by the company about the market and entry mode in the market.
This report has been analyzed to investigate over the international market entry mode. It has been found through this report that there are many ways for a company to enter into international market to diversify its market and to enhance its operations as well as sales of the company. In the era of globalization, it becomes mandatory for every company to enhance its operations and diversify its market globally (Tihanyi, Griffith and Russell, 2005).
The report describes about the entry in Turkish market of other country’s company. In this report every aspect related to Turkish market and entry in Turkish market has been analyzed. Firstly, Turkish market has been studied and found that there are many risks in Turkish market as the country is still trying to become a part of European union and the policies and rules and regulations of turkey is far different from other European countries. It has also been analyzed that company suffers many risk such as terrorist attack and less flexibility in the market.
Entry Mode and its Significance
Further, we explain the user about the mode of effective entry in international market such as exporting, franchising, licensing, strategic alliances, partnership, acquisition, joint venture, Greenfield venture etc. Moreover, the risk and benefit of every effective entry mode has been analyzed so that the best entry mode could be decided. It has been analyzed that every entry mode is different and have different risk perspective and benefits. International market has become significant. And in case of Turkish market, the country is welcoming the foreign countries from heart to come into the market and explore the Turkish market.
International markets have different strategy for every business to enter into the international market and give their service or products to the foreign clients. It has been analyzed through this report that companies are isolated due to many factors such as trade barriers, trade distances, culture and time. A company must enter into the international market for advancement of technology, decrease storage cost, decrease transport cost, identification of new segment and less need about customized product as existed companies have almost similar products.
Further, the effective entry mode in Turkish market has been analyzed such as exporting, franchising, licensing, strategic alliances, partnership, acquisition, joint venture, Greenfield venture etc. it has been found that which market mode is suitable in Turkish market and how it would help the international companies to set up their business in turkey and enjoy the growth. It has been analyzed that every entry mode is different and have different risk perspective and benefits. International market has become significant.
Then, the report represents two cases that shows two different entry modes which has been chosen by two different international company in entering to Turkish market.
At lastly, this report project/study (lütfen hepsini de?i?tir) gives a concise explanation explains about the recommendation given to the international companies to enter into the Turkish market and enhance the business. It explains – pe?pe?e hep ayn? kelimeleri kullanmamaya çal?? – the international companies that which market mode is suitable in Turkish market and how it would help the international companies to set up their business in turkey and enjoy the growth. Finally, conclusion of the study has been given to make it more clearly to the user about the study and the decisions and recommendation which has been taken whiles this study. The conclusion part describes the user about the whole report in summary.
Analyzing the Turkish Market
Globalization refers to the process which emphasizes upon the interaction among the individuals, government and the organizations of different countries by the means of international trade and investment in the foreign countries (Hirst, Thompson and Bromley, 2015). This involves the increase in the flow and interchange of international currency, thoughts, ideas and culture across the nations. Globalization enables the organizations to operate on the international scale and develop greater global influence. The amount of globalization largely influences the amount of international trade and the level of cultural exchange among the countries. Globalization involves the economic integration of the international markets as well as the integration of socio- cultural values and norms.
Turkish market has been studied and found that there are many risks in Turkish market as the country is still trying to become a part of European union and the policies and rules and regulations of turkey is far different from other European countries. It has also been analyzed that company suffers many risk such as terrorist attack and less flexibility in the market.
Still many significant are there due to which international companies see an opportunity in the market. Many barriers are also there to hamper entrance into the Turkish market but it could be resolved quickly and with a little bit knowledge about the Turkey conceptual framework, contacts and language assistance. Any strategy of market entry in Turkey should initiate with a careful understanding of the benefits and cost to doing business in Turkish market (Forlani, Parthasarathy and Keaveney, 2008).
An international company must consider their own resources, business experience abroad, long-term business strategy and previous export before entering the Turkish market. For most of the international companies, describeion in Turkey through distributor, liaison office, partner or Turkish agent would be a significant key in terms of success. Even though it’s not required for the local partners that they could offer knowledge and understanding of the regulatory framework in Turkish market, valuable business contacts and language assistance (Dow and Larimo, 2009). With the development of the company, companies could open many subsidiaries and could also make more investments locally to increase their market share and value of the business.
In Turkey, the U.S. Commercial Service has various programs and services offered to help American businesses and other businesses in instituting an existence in this market and managing and developing suitable links. Experienced Staffed with Specialists in commercial services with many years in sector expertise and industry, the Commercial Service team of other countries in Turkey could tailor the business approach for the right audience, and offer recommendation on the business strategy in Turkey (Canabal and White, 2008).
Entry Modes for International Markets
Thus it could be said that with many issues and risk in the market of Turkey still it is the best option to enter and diversify the market by international companies as still many significant are there due to which international companies see an opportunity in the market. Many barriers are also there to hamper entrance into the Turkish market but it could be resolved quickly and with a little bit knowledge about the Turkey conceptual framework, contacts and language assistance.
Today, in the era of globalization, with various opportunities as well as huge competition, it is good for the international companies to enter into new market so that the business could be enhanced. Entry mode in international market or foreign market is basically an arrangement among the institutions which make it possible for the organization to enter into the foreign market with new technology, management, human skills, advancement or other resources (Blomstermo, Deo Sharma and Sallis, 2006). Basically, whenever a company thinks about diversifying its market into foreign market than it is because of economic advantages or some other advantages that could make them more popular among the clients and the share price of the company could also enhance. It is a crucial decision for the companies to decide that whether they should enter into the new market or if yes than what would be the effective mode to enter into the market. It has been found that entry mode get affected with many variables such as environmental variable, strategic variable, transaction variable or other specific variables.
Environmental variable includes the things like variables which are related to location familiarity, country risk, competitive conditions and the demand which exists in the host country market. The planned variables are those which must be adapted by company to enter into the foreign market or enhance the sales of new product. These similarities between the countries and there variables become less important due to the time factor. The transactions variable and other specific variables pressure the firm’s importance in a particular manner and explain the competitive advantage (Rasheed, 2005). Decision about the entry mode implements the current state, stability, access to resources, companies past experiences and target market structure of company. It has been stated that for a service firm, traditional way to enter into a new market is to go behind their manufacturing clients so that with the products services could also be supplied easily which are served into domestic market.
Risk and Benefit of Entry Modes
But currently many changes has been occurred into the market and found that there are various other ways for the service firm to enter into new market. The expansion has stimulated onward and that has created service businesses less dependent on local business operations to globalize the company due to new advancement and technologies for electronic trade (Slangen and Van Tulder, 2009). Even, the service sector is known as an imperative part of the international economy, the article paper and researches on service market in international context is quite limited. It has been questioned in these concepts, practices and theories from the strategies of entry mode from a production perspective are appropriate to the service industry. The previous research which has already been done advice that the companies which are involved in service sector is less intensive in terms of capital moderately to companies which are involved in manufacturing business but it also varies in service industry (Cui and Jiang, 2009).
Two major theories are there on international entry mode i.e. internalizations and eclectic theory. These theories have been considered due to their well known aspects and they are best known theory. They also have empirical support. Theory of internalization is the same theory as theory of transaction cost. The internationalization theory is based upon industrial organization. This theory assumes the changes of resources among companies, perfect competition and homogeneous which includes the transferability in a perfect manner of know-how among the partners and the firms (Tihanyi, Griffith and Russell, 2005). The advantage of internalization theory is a contractual risk which controls the overseas partner all the way through foreign direct investment which is more precious than a local firm’s licensing. Internalization theory has been questioned since it is not suitable to contrast FDI with selling overseas (Dincer, Tatoglu and Glaister, 2006).
The eclectic theory has been developed because of inadequacy in the theory of internationalization which focuses on ownership, location and advantages over internalization. The advantage of ownership refers to assisting the overseas firm to defeat the weakness of opposition against local companies. The country risk and market potential which makes it advantageous to perform business in foreign market. (Aydin and Acikmese, 2007). In addition this is not good since it do not be familiar with planned deliberation like capability improvement. Except this theory also does not elucidate that why 2 companies with similar possession, location advantages and internalization might not decide the same mode of entry (Brouthers, Brouthers and Werner, 2008). This theory which is based upon recourses explains the industry and the firm as competitive advantages sources (Kiri?çi, 2009). This theory recognizes the information that the wherewithals are heterogeneous across industry and firms and it is affected imperfectly due to mobility.
Effective Entry Modes for Turkish Market
Many articles and studies about foreign entry modes which are already existed has been studied and identified that several variables are there that could have a consequence on the choice on which entry mode to decide (Tsarouhas, 2009). Entry modes could be distinguished by control level, commitment level, resource level and risk involvement level. The control is the particular and most important factor which decides both returns and risk of the presentation of investment globally and the frictions amount in the sellers and buyers relationship (Brouthers and Hennart, 2007). They describe control as the ability of firm to pressure the various administration systems the association have if they could make a control over this than they would have the aptitude to develop their competitive situation and exploit returns on assets of the firm (Koc and Altinay, 2007).
The subsidiaries which are wholly owned have a good control level which is the highest whereas the lowest control level is owned by licensing. Commitment of resources is explained as fallowed. It consist the attachment of assets for particular use which is either difficult or fixed to change without implementing large costs. It has been said that service perspective control means that timely supply of goods and quality service and goods to international clients (Çetin and Oguz, 2007). Companies that desire to go into a new market have a range of entry modes. They could be alienated in to 3 groups.
The 1st part is entering into new markets throughout the modes of export and that consist of direct and indirect sending abroad, direct branch subsidiary, direct agent/distribution and other channels (Dow, and Larimo, 2009). The 2nd part is contractual entry modes which includes technical agreements, service contracts, licensing, construction/turnkey contracts, franchising, management contracts, co-production contracts and other. The 3rd part is investment entry mode which includes sole venture: new establishment, acquisition, joint venture: new establishment/acquisition (Cui and Jiang, 2009).
According to Laufs and Schwens (2014), there are a few factors that largely affect the decisions of the organization related to the entry modes. The following are the factors that determine the entry mode:
- Cost of entry: The expenses involved in entering a foreign market is the major factor that influences the decision of the organizations related to the mode of entry.
- Risk associated with the entry mode: The amount of risks associated with entering a foreign market determines the choice of the entry mode. For instance, franchising is less risky as compared to investing the entire capital in setting up a business in the foreign country.
- Size of the foreign market: The present size of the market and the projected size of the potential foreign market influence the choice of the entry mode by the organizations.
- Political, economic and environmental conditions of the target country: Political stability, satisfactory economic conditions and positive environment of a country positively influences the choice of the entry mode by the organizations.
- Availability of resources: The availability of resources with the company in terms of the availability of capital, manpower, technology, marketing and advertising skills and production skills largely determine the choice of the foreign market.
According to Andreu, Claver and Quer (2017), globalization has encouraged several organizations to establish their global presence by entering the foreign markets. With the increase in the globalization, the restrictions on the entry modes have reduced considerably. The Governments of several countries have limited the restrictions on the entry of foreign organizations and have made their laws flexible to encourage foreign investments and international trade.
Case Studies of Entry Modes
Exporting is a common term which is used when an individual talks about selling the goods and services in overseas market. Export is one of the most common and easy options to enter into new market. It has been stated that export modes concludes indirect entry, direct branch subsidiary, direct agent/distribution and other. Bradley (2005) has spoken in general terms about exporting as it is the quickest method and also it is the easiest method of entering into a new foreign market. Initially this approach has been used to increase knowledge and understanding of new market when a corporation decides about the entry mode than they also choose the level of commitment, resources and risk involvement so that the proper and strategic planning could be done (Morschett, Schramm-Klein and Swoboda, 2010). Exporting:
It has been said that a low assurance of Low investment and resources choice takes place in exporting. Exporting has the disadvantages such as little control over firm and low profit return (Bu?ra and Keyder, 2006). After entering into new market and gaining the knowledge and understanding about the needs of host country, companies could try to boost their presents through applying the new strategy and planning (Termin, 2013). Exporting could be a part of gamut to enhance the commitment to internationalization.
Direct exporting happens when the goods are sold by producer directly to the buyer or importer situated in an overseas country. In this type of entry form, very modest or no information about the overseas market is desirable from the producer’s point of view. Three advantages are there of this entry form, the first one is partially or completely control over the overseas market sketch, the second one is marketing effort consideration on the producer’s product line (Cizre and Yeldan, 2005). Third advantages of this entrying mode are quicker feedbacks, knowledge from the target market which could help the clients to adapt the product of the company faster. The last advantage of direct exporting is better fortification of patents, trademarks, goodwill and other insubstantial property (Aydin and Özer, 2005). One obligation for this entrance form is that the exporter wants to discover the process and credentials of export consignments and the worldwide payments planning for being able to use this mode.
This mode is directly connected to the many direct agent/distribution, entry strategies and direct branch subsidiary. Direct subsidiary of branch needs an equity venture in the institutions of marketing which are located in the host country. Because this entry mode means that the manufacturer has it’s possess in marketing units which operates in new country. Further, it also explains this process but under diverse names, as overseas branch of sales (Blomstermo, Deo Sharma and Sallis, 2006). Direct agent or distribution exporting is explained as when the person as mediator in the overseas country manages all the marketing strategies and planning for the producer.
Recommendations for International Companies
Licensing has described as an intangible asset which could be transferred. Licensing is not a subject of import boundaries. This method is used when a company offers its licensing to others companies to use in a foreign market with advancement and technology that they want, for a royalty or fee (Nielsen and Nielsen, 2011). This licensing from contains one brand name or an arrangement of access to a patents, brand name, manufacturing process technology, operations expertise and trade secrets. A firm who gets able to use the license and becomes licensing partners could gain admittance in an overseas market with very little investment cost and it also obtains the information and market knowledge from institutes and experienced local firm. This licensing mode of entry in overseas market is positive when the preferred market has limited FDI and import. There are two methods of licensing agreements which are a future technology license and current technology license. The main differences between these two methods are that in the future technology license, current and future technology advancements are considered whereas in current technology advancement, only current technology could be considered.
Contract manufacturing is also a way to enter into a new market. This entry mode is basically a cross among the investments and licensing entry mode. A company makes a contract with another firm which is situated in foreign market to manufacture or assemble the products although still they have the accountability for distribution and marketing of the goods (López-Duarte and Vidal-Suárez, 2010). This mode of entry into a foreign market needs the investment of talent, time and cash. It also offers quick entry into the foreign market. Conversely, it also has prospective as frightening problems like: preparation for the possible competitor which have entrée to know-how and offers the high quality products to the clients, additionally, over the earnings from the production house is transport to the contractor (Hortaçsu and McAdams, 2010).
There is another method to enter into the foreign market is with the help of a strategic alliance with host country’s firm. Strategic alliance contains an agreement which bases upon many contracts between two or more companies instructing that the concerned parties would assist in a convinced way for a definite time to accomplish a common target. To decide if the association approach is appropriate for the company, the company must choose that what significance the associate could carry to the business enterprise in conditions of both tangible aspects and intangible aspects (Andiç, Yurt and Baltac?o?lu, 2012).
Conclusion
The partnering advantages with a local company are that the company in host country possibly understands the methods of doing business, market and local culture in a better way. Especially, partners are important if they have a reputable, recognized brand name in the host country or have great existing associations with clientele that the company might need to admittance such as XYZ Company has formed a planned alliance with ABC to expand businesses in Turkish market. In the association, a company could decide to co-brand with the company in host country’s name so that it can leverage company’s reputation in host country for the products and services (Sanchez-Peinado and Pla-Barber, 2006). Xerox has launched policies of strategic alliances to enhance the sales in budding markets such as Europe, Brazil and India.
This mode of entry into foreign market is also beneficial for small commercial companies that might be too little to create the desirable investments for entering into foreign market (Epstein, 2005). Further, some countries are required to make the partner to a local company if they need to enter into the foreign market such as in Saudi Arabia, other foreign companies are needed to make strategic alliances with a local firm according to Saudi Arabia’s law. This obligation is ordinary in Eastern countries (middle). Even exclusive of this regulation, a local company or partner always helps overseas companies in bridging the dissimilarities that or else doing the business in foreign country is impossible. For example, Walmart has failed many times around a decade to successfully develop its business operations in Mexico till the time it established a strong partner locally with related business standards (Hortaçsu and McAdams, 2010).
On the other hand, the disadvantages of partnering are direct control lack and the prospect that the goals of partner would differ from the company’s goal. It has described that in the case of US Company, they are eager to step into the Indian market: they said that this would quickly negotiated regulations and terms and would complete the arrangements with the help of local partners, Certain documents which are required while stepping into foreign market, however, like industrial license, capital issues permit, foreign collaboration agreements, machinery and equipment imported licenses etc. Trying to accelerate the approval of governmental about these items, the US Company has agreed to recognize a lesser royalty fee than initially predetermined. After all of it, the project of us coampnies has not been expedited greatly and the royalty fee has been reduced lower from the firm’s profit by roughly half a million dollars for life time agreement (Görür et al, 2011).
For avoiding these issues, company could shape one internationally incorporated team to supervise its coalitions in rising markets. Having devoted players permits company to invest in development and training of the managers that how they could manage the multifaceted relationships which is involved in coalition (Brouthers and Hennart, 2007). The team goes behind a reliable model by sharing and using the best practices for association’s benefits.
Joint venture is another method to enter into a new market to achieve the goal of the business. It is a strategic partnership, contractual among many separated business organizations to follow an operational chance together. The associates in an organization joint venture have to contribute resources and capital in swap over for an equity venture and allocate in any consequential profits. In the case of nonentity joint venture, equity holders need not to contribution the resources and capital to figure a new entity.)
For seeing that how an equity joint venture works, example of Egyptian company is the best. It describes that joint venture in a better manner. It has been founded that his company of jam has taken the advantages of excess fruit products of Egypt’s. It has been initially approached that a jam company of French, Vitrac, wanted to enter into a contract of joint venture with a new founded company, Vitrac Egypt. The Egyptian has been supplied the fruit in the markets while the another company of French has supplied the know-how and advanced technology for manufacturing jams.
Further, it has been analyzed that exporting to the United States, Australia and in the Middle East, the French company, Vitrac has began to exporting its products to Japan. Japan sales results of Japan describes that there is a huge demand of blueberry jam. For meeting the demand of Jam customer in the country, company has come up with an interesting entwine. Company used the advance technique to meet all the demand of the customer. Company started importing blueberries from Canada. Thus, the company, Vitrac was importing the blueberries from Canada, company was producing the jam from blueberries in Egypt, and finally it exported it to Japan (Morschett Schramm-Klein and Swoboda, 2010).
By using the manufacturing known how of French company, Abdel Nour, the Egyptian company had initiated an new opportunity and supply chain to step into new foreign markets with it, so that the reach of the company could enhance and it would directly make an impact over the sales of the company. The contract and partnership fit was quite good among both Egyptian and French company. The joint venture of both companies has continued for three years and then the company situated at French had sold its shares to other company, Abdel Nour, and the Egyptian company, Vitrac made a company with 100 percent shares and operated only in Egypt (Sakarya, Eckman and Hyllegard, 2007). The French company, Abdel Nour’s, has reached to $22 million in terms of sales and it was the leader in jam market industry in Egypt before it was bought by Swiss company.
Joint ventures possess both risks and benefits for the organizations which are involved. The main step of joint venture is to find out the best and the right partner for venture ship. The partnership must not only be good according to the business terms but it must also be good according to the management practices and cultural perspective (Güler and Alpaslan, 2009).
Secondly, the partner from host country may increase the technology and know-how perspective for producing their own competitive services or goods to compete with the multinational companies. Currently, the same is happing in china market. For manufacturing the cars in China, other companies from foreign countries should come into a contract of joint ventures with automakers of china so that the technology could be shared with the other company (Demirbag, Tatoglu and Glaister, 2008). Once the contract finishes, nevertheless, the company from host country might use the knowledge which has been gained from the partner company to compete with its competitors.
Acquisition is a transaction basically in which a firm takes a control over another firm by buying its stock or exchanging its own stock by their stock, or, in private firm case, by paying purchase price amount to the owner. In our progressively smoother world, cross-border acquirements have risen radically (Akman and Yilmaz, 2008). In current time, cross-border acquirements have made up over 60% of all acquirements has completed worldwide. Acquisitions are attractive because they provide the corporation quick and established admittance to a latest market. Though, they are luxurious, so only the big companies give a thought about the acquisitions. In the recent year, the strength of the company has been changed and this directly impacted over the business of the country. High interest rate in the still developing countries has enhanced the currency of the country in relations with euro and dollars (Gökgöz and Atmaca, 2012). It has been found if a company from strong country signs an acquisition agreement with less strong country than the acquisition become cheaper. It has been said that the main reason behind failing the merger is lot of money as premium amount. But if a country’s currency is strong than it could be able to bargain. (Çetin and Oguz, 2007).
While a firm chooses that whether the acquisition entry mode must be opted or not than firm is needed to analyze the strategy, laws and other regulations in the host country such as China has many boundaries on foreign possession though even the United States, a developed-world country has laws which addresses acquisitions (Aydin and Özer, 2005).
It is a good mode to enter into foreign market. Acquisition offers a good entry strategy which could be used when scale is required that is a special case in many industries such as wireless telecommunications. It also helps a company when entire industry is consolidating. However, acquisitions are quite risky. By analyzing many research paper and articles, it has been found that between 40 60 percent of entire acquisitions not succeed to enlarge the acquired company’s market value by more than invested amount (Canabal and White, 2008).
Sometimes companies might want to have a direct presence and operate directly in the foreign market so the companies could choose this option. Greenfield venture is also known as own subsidiary venture. For achieving the goal of not entering into the foreign market directly, company could even establish a new, totally owned subsidiary or company also have an option to buy the already existing company in foreign market to be in that market. Many companies found it easy to purchase their early partners or early partners for being into the foreign market as VitracEgypt, the joint venture of French and Egyptian company has done. Other companies might buy a local supplier or company for making a direct control over the supply. It is the type of vertical integration (Sakarya, Eckman and Hyllegard, 2007).
It requires the highest commitment for establishing or buying an owned subsidiary totally as a part of the international company, because the company could assume entire risks such as financial risk, currency risk, economic risk, and political risk (Demirbag, McGuinness and Altay, 2010).
It has been found that few companies select to buy an already presented company in the host country absolute as a method to acquire into an overseas market rapidly. While making an acquisition contract, the main importance is of due diligence. It does not only impact over the financial side but it also makes an impact over the country’s culture side and business practices of the host country (Çetin and Oguz, 2007) It has been found that currently the Russia’s annual disposable income has been exceeded than other BRIC countries which are Brazil, India, and China. Russia is too big for many major companies and thus they ignore this country as a market. Though, this country also has a character of red tape and corruption by even its officers with high ranks. An economic advisor Mr. Arkady Dvorkovich suggested that investors must choose the entry mode and country wisely as which area of host country would be targeted first and which area or stsate of the country is not good for the business. Corruption of the country must also be analyzed as it makes less flat to the world because it weaken the feasibility of lawful vehicles, like licensing (Chen, 2008).
It has been found that culture is worst element of a country and before entering into the market and buying nay company of the country, Guest Company must analyze the aspects of the company thoroughly. This would help the company to reduce the cost and time and it would also help the company to choose the best country to enter and diversify the market.
Taxes of the company are also important factor which must be considered by the company before buying the companies in that country. This would help the company to reduce the cost and time and it would also help the company to choose the best country to enter and diversify the market (Puck, Holtbrügge and Mohr, 2009). If a business get able to reduce the extra and higher tax rates then it would be quite easy for the country to enter and diversify the market into host country.
But this further analyzes and short cuts to reduce the cost and save the company from taxes could impact badly over the shareholder of the company and a negative message would be delivered in the market about the company.
As discussed earlier, that there are many risks in Turkish market as the country is still trying to become a part of European union and the policies and rules and regulations of turkey is far different from other European countries. It has also been analyzed that company suffers many risk such as terrorist attack and less flexibility in the market (Andiç, Yurt, and Baltac?o?lu, 2012).
Even still many noteworthy are there due to which international companies see an opportunity in the Turkish market. They also found many barriers in the Turkish market to hamper the entrance into the Turkish market but it could be resolved quickly and with a little bit knowledge about the Turkey conceptual framework, contacts and language assistance. Any strategy of market entry in Turkey should initiate with a careful understanding of the benefits and cost to doing business in Turkish market (Demirbag, Tatoglu and Glaister, 2007).
An international company must consider their own resources, business experience abroad, long-term business strategy and previous export before entering the Turkish market. For most of the international companies, describeion in Turkey through distributor, liaison office, partner or Turkish agent would be a significant key in terms of success. Even though it’s not required for the local partners that they could offer knowledge and understanding of the regulatory framework in Turkish market, valuable business contacts and language assistance (López-Duarte and Vidal-Suárez, 2010). With the development of the company, companies could open many subsidiaries and could also make more investments locally to increase their market share and value of the business.
In Turkey, the U.S. Commercial Service has various programs and services offered to help American businesses and other businesses in instituting an existence in this market and managing and developing suitable links (Ozorhon, Dikmen and Birgonul, 2006). Experienced Staffed with Specialists in commercial services with many years in sector expertise and industry, the Commercial Service team of other countries in Turkey could tailor the business approach for the right audience, and offer recommendation on the business strategy in Turkey (Petrou, 2009).
Firstly, how much resources of company, company is ready to commit with new market? For it, it has been found that it is better for the company to devote less resources as the fewer the resources such as expertise, money and time would be, the easier and better it would be for the company to enter into an overseas market with a contractual basis with the help of management contracts, licensing, franchising, acquisitions, joint venture, Greenfield venture or turnkey projects (Demirbag, Tatoglu and Glaister, 2009).
Secondly, company must analyze that how much control does the company need to make it with itself? If a company wants more control over the overseas business than it is better for the company to switch the idea of establishing by the idea of purchasing a wholly owned subsidiary or use the mode of joint venture with cautiously described responsibilities and accountabilities among the partner companies.
In spite of the entry strategy a company pot to enter into the Turkish market, numerous factors are quite significant. These are as follows:
Culture and linguistic differences describe that cultural differences and linguistic differences among the partners and companies affect entire associations and communications within the business, with the government, and with the customers. It is critical to understand the local culture of companies to get success.
Quality and training of employees and local contractors describe that it is important for a company to evaluate the skill sets and capabilities of their labor so that no issues regarding the skills could be faced by the company and then company must determine that whether local staff is enough competent to get success (Tsang, 2005).
Political and economic issues play an important role while choosing the best way for entering into the Turkish market. Policy could be changed regularly and it is needed by the company to decide that how much investment they’re eager to formulate, how much earnings of theirs could be repatriated and what factors are required to make this investment (Anil, I., Tatoglu and Ozkasap, 2014).
Experience of the partner company is quite significant for the company to choose the best entry method to get into the Turkish market. Analyzing over the understanding and skills and experience of the partner company in Turkish market with the knowledge about dealing with the clients, production etc are investigated deeply to make a decision about entry mode.
It has been found that a company which is seeking to step into the Turkish market must have to follow the below steps:
- Company must investigate over the Turkish market carefully and must identify the culture and practices if the country.
- Company must understand the exclusive industry and their working style and must maintain regulatory relationships with other companies and industry in the Turkish market.
- Company must take the help of internet to analyze and communicate with suitable overseas trade corporations in Turkish market or with the embassy of the turkey. Each embassy decides different rules and regulations for trading and commercial counter. Such as the turkey government has US Embassy which assists the US companies on dealing and helps them to enter into the market by providing them training and other facilities (Anil, Tatoglu and Ozkasap, 2014).
These possessions are finest for smaller organizations. Larger organizations with more resources and money usually appoint top experts to do the above research for them and help them to set up their business in Turkish market. Big companies are also capable to maintain a large size group to do the above task for them and analyze the efficiency report for them (Ellis, 2008).
The report enumerates the steps that was taken by the company in order to hold smooth functioning in the foreign markets. The strategies that is being implemented by the business entities are based on the PESTEL (PESTEL’in aç?l?m?n? yazman ve teoriden biraz daha bahsetmen gerekir) that is used by the same in order to determine the society, the environment and the adaptability of the region relating to their products.
PESTEL analysis refers to the process of analysis wherein the external factors that affect the functioning of an organization or a country on a whole, are identified and analyzed. This involves identifying the political conditions of the country and also analyzing the political condition of the country wherein an individual, an organization or an industry is located. The analysis also involves identifying and evaluating the economic conditions of a country, which has huge impact on the individuals and organizations of a country. The social conditions of a nation are also identified and analyzed (Xu, Hitt and Miller 2017). The technological advancement, environmental conditions and the legal system of the country are also identified and analyzed in order to determine the market acquisition techniques.
Market acquisition is one of the techniques that was considered in order to enter a market in the foreign grounds. Market acquisition refers to the company’s decision of buying the resident company of the nation in order to access the market of the nation. It helps in bringing in improvements in the organizational structure and expanding the scope of the business. The concerned company, Mahindra and Mahindra Ltd, (italic yazman gerekmez, k?lavuza bak) acquired over the market of the Erkunt Traktor Sanayii AS, which is a Turkish tractor manufacturing company. It has helped Mahindra to make their entry into the Turkish markets with ease. It took an investment around Rs 800 crore to undertake the steps that are being undertaken by the concerned company in order to acquire over the market (Laufs & Schwens, 2014). Moreover, the chosen firm has been helped by such acquisition in terms of replacing its marketing as well as business activities. The acquisition has resulted to the growth of the company in the market, which is again an important phenomenon that is required to be noticed in the market entry mode.
The decision that the company undertook in order to acquire the market of the company in the Turkish market has helped in the expansion and the diversification of the range of tractors and the two wheelers in the market. It has helped the company in adhering to the requirements of the varied consumers based on their varied preferences and concerns. The diversity has helped Mahindra in expanding its scope in the market and gain over a huge market structure based on their product portfolio. It has helped the organization in bringing in changes in the structure that supports their progress.
Mahindra undertook a contract with Erkunt Traktor so as to acquire 100% of the market shares of the later company, and additionally at least 80% of the shares that is being held by the host company. The company aims at selling tractors to the global markets. The considerable increase in the sales of the company can be enumerated through the annual reports that the company produces and publishes in their website. According to the annual report, the company has sold 4700 tractors while earning revenue of some 314 million Turkish Lira. According to an analyst the company is drawing 20% of the revenue through its exports and therefore is planning a sustainable market strategy (Raff, Ryan & Stähler, 2012). The consideration that the firm undertook is related to its considerable growth in the sector and the international markets. The market entry strategy that they implemented has helped the them in framing the sustainable organizational culture. On the other hand, the requirements of the consumers are also taken care of by the organization in order to gain the stability in the market structure (Maekelburger, Schwens & Kabst, 2012).
The market entry strategy that is being undertaken by the Visma Retail, Norway has helped the same in establishing itself in the markets of Turkey. It has helped the company in making the considerable changes in the market structure of the nation. The step that is being undertaken by the company is based on the allocation of the resources and their services in order to provide the IT solutions to their guest companies worldwide (Ang, Benischke & Doh, 2015). The most important step that is being considered by the organization is based on the resources of the company to which they would assist. The company with which they have taken the alliance is a Turkey based company, named Kesit Bili?im. The most important step that is being undertaken during the alliance is the mutual growth of the specific business firm through their interdependence on one another. It helps in building the trust between the companies and therefore helps in the mutual progress of the companies in the global markets. Visma has undertaken the partnership in order to help the host company progress in the market and thereby help the company in making their progress through the probable adherence to the needs of the consumers. The company undertakes consultancy functions in order to help the host companies in judging the demand of the consumers and thereby make changes in the organizational system in order to improve their retail trade in the markets (Brouthers, 2013). In order to adhere the requirements of the people, Visma modified the system within the firm which further led the same to gain prosperity (Hohenthal, Johanson & Johanson, 2014). Therefore, the company takes steps to support the host company in solving the issues that is faced in order to make its progress more lucid.
The major task that is being undertaken by Visma is to make the host company aware of the changes that are required to be undertaken. Through their consultancy, they earn a revenue for themselves. However, the profits that are being raised by the concerned organization is not being shared by the Visma. Therefore, it affected the growth of Visma in the market and constrained their efforts of expanding their markets to the other countries. The services and the assistance that are being enumerated by the company are being rewarded through money and no portion of the profit is being shared by the firm. It affected the possibility of the comapny in order to make its progress in the market (Murray, Ju & Gao, 2012).
The market entry modes used by Mahindra and Visma determine the success of these two companies in the targeted market in terms of their business activities. The return on the investments policies and strategies of these firms are based on the functions of the same (De Villa, Rajwani & Lawton, 2015). The market entry strategies determine the growth and the expansion of the organization based on the market structure. Therefore, careful consideration must be taken while selecting the market entry strategy. The strategies help in determining the positive and the negative impacts of the market on the company and thereby help in judging the situation of the business firms in the market (Brouthers, 2013). One of the most vital strategies used by these business entities are based on the resource planning procedures. It helps the organization in having a constant modification based on the change of the requirements of the people (Holtbrügge & Baron, 2013).
He market entry strategies of Mahindra is described towards the change management by the company in the Turkish market. The vital factor that affects the availability of the products in the market is being assured by the acquisition. Therefore, the progress made by Mahindra has helped them in the expansion of their business beyond the borders. The consideration that is being made by the organization is based on the complete control over the market (Musso & Francioni, 2014). Therefore, it helps the chosen company in manipulating the market devices as per the requirements of the same. The resourcefulness of the company’s marketing activities has led the company to consider the effective market entry strategies. The company after the acquisition has taken steps that have helped the organization in developing their skills as per the requirements of the people. The market entry mode has helped the business entity in securing its base on the nationality (Sandberg, 2013). In addition, it has helped the firm in making use of the brand name of the organization that Mahindra has acquired. Moreover, it has received a steady market for conducting the trade. In short, the entry strategies as well as the acquisition has ensured the progress of the firm in the new market.
On the other hand, the other company, Visma retails have undertaken strategies that have helped the host firm in bingeing in changes in its organizational structure. In order to meet the demand and requirements of the people in both the new and existing market, the company has made remarkable progress in the strategic marketing and business activities (Hilmersson & Jansson, 2012). Along with this, the consultancy service id one of the vital strategy adopted by Visma in term of delivering service to the people as well as of the aspect of change in the market. The changes that are being undertaken by the firm did not actually facilitate their growth in the market. Moreover, their functions have not affected the market with the growth and progress of the organization. In order to bring about the organizational change the company depended upon the requirements of the change in its structural context.
The entry modes that are being adopted by the firms determine their progress in the market, based on their organizational goals. The steps that are being used by the company and the investments that the organization undertook are based on its requirement in order to expand its business in the foreign markets. Mahindra has adopted the acquisition, through which the company could delve into the large market of Turkey and most probably make an entry into the international markets. The effectiveness of the entry modes is based on the criteria of the inevitable attempts of the firm to make its progress. The increase in the sales of the business entity to 20% proves the reliability of the entry mode and the effects that the entry mode bore for the firm. The most important step that is being exercised by the organization is based on its requirement of bringing about the change in the market structure and thereby acquire the brand name. In order to hold a successful market in Turkey, the decision of the firm has helped in the undertaking of the business more proficiently. It has helped in the growth of the company (Schuster & Holtbrügge, 2012).
On the other hand, the flaw in the undertaking of the entry mode by the other company is based on their strategic alliance. They undertook the strategic alliance, which has enabled the mutual growth of both the organizations at the same time. Visma is supporting the mutual growth of the business firms in order to make the considerable progress in the market (Ripollés, Blesac & Monferrer, 2012). The changes that are being practiced based on the organizational structure are due to the important changes that are required to be taken in the systems in order to support the market. The most crucial changes that are being planned by the firms is based on the demands of the consumers for the products that seems to be more feasible. Visma helps in the development of the products and makes the company aware of the needs and the requirements of the consumers through the development of a sound ERP system which has further helped in the growth of the host company. However, Visma did not earn any return on the investments other than the consultancy charge. It affected the growth of Visma in the competitive markets of Turkey.
Therefore, from the above analysis it can be stated that Mahindra has undertaken the best market entry devices, which has helped in acquiring the market of Turkey. The most important step that is being undertaken by the company is based on the increase of the productivity of the organization, which has helped the same in bringing in the changes in the market. The steps that are being taken by the companies have helped the same in bringing in the changes in the market. The most vital change that the company undertakes is based on the entry to the Turkish markets, which is 3 times larger than the markets in which they have been operating. Therefore, the scope for expansion that is being exercised by the organization has helped the same in evolving the culture of the firm in the international markets. The analysis helps in the comparative understanding of the efficiency of the measures that are being used by the organizations while undertaking an entry mode.
Conclusion:
Exporting is the sale of products and services in foreign countries that are sourced or made in the home country. Importing refers to buying goods and services from foreign sources and bringing them back into the home country.
Companies export because it’s the easiest way to participate in global trade, it’s a less costly investment than the other entry strategies, and it’s much easier to simply stop exporting than it is to extricate oneself from the other entry modes. The benefits of exporting include access to new markets and revenues as well as lower manufacturing costs due to higher manufacturing volumes.
Contractual forms of entry (i.e., licensing and franchising) have lower up-front costs than investment modes do. It’s also easier for the company to extricate itself from the situation if the results aren’t favorable. On the other hand, investment modes (joint ventures and wholly owned subsidiaries) may bring the company higher returns and a deeper knowledge of the country.
Companies makes a contract of contract manufacturing because this mode offers them a way to participate in global trade, it’s a costly investment than the other entry strategies and it’s much easier for the company to use this mode to direct enter into in the Turkish market. It is to extricate oneself from the other entry modes. The benefits of contract manufacturing include admittance to new markets and revenues with low flexibility and higher profits.
The form of the entry mode is partnership and strategic alliances. This mode has high costs than other entry modes. It’s an easiest method for the company to directly enter into the Turkish market and extract itself from the situation where the results are not in the favor of the company. The benefits of partnership and strategic alliances include admittance to new markets and revenues with low flexibility and law interaction of middleman.
Companies make a contract of joint venture because it’s the safest way to participate in global trade, its little costly investment than the other entry strategies, this entry mode has huge risks and benefits too. The benefits of joint venture include access to new markets and revenues as well as with less marketing cost and high flexibility. Although some risk situated with this entry mode is high risk and marketing cost.
Companies make a contract of Greenfield venture because it’s the safest way to participate in global trade, its huge costly investment than the other entry strategies, this entry mode has huge risks and benefits too. The benefits of Greenfield venture include access to new markets and revenues. Although some risk situated with this entry mode is high risk, less flexibility and high marketing cost.
Thus through this analysis it is suggested to the companies who wants to enter into the Turkish market to analyze every entry mode according to their Company Goals, Resources, Size of the company, Competition, Remittance, Product, Middleman Characteristics, Number of markets, Market Feedback, Environmental characteristic, Control, Marketing cost, International Market Learning, Profits, Investment, Flexibility, Foreign Problems, Risk etc.
Though this companies could easily analysis that which entry mode is best for them to analyze and enter into the Turkey market. It has also been analyzed through this report that every entry mode is different with each other and offers the different benefits and risk to the customers. Thus a company must analyze the mode and then take the decision about entry mode to enter into the Turkish market.
Thus it could be said that this report would help the companies on a huge level to choose the mode to enter into the Turkish market and enjoy the benefits of Turkish markets.
Therefore, from the above analysis it can be stated that Mahindra has undertaken the best market entry devices, which has helped in acquiring the market of Turkey.The most important step that is being undertaken by the company is based on the increase of the productivity of the organization, which has helped the same in bringing in the changes in the market. The steps that are being taken by the companies have helped the same in bringing in the changes in the market. The most vital change that the company undertakes is based on the entry to the Turkish markets, which is 3 times larger than the markets in which they have been operating. Therefore, the scope for expansion that is being exercised by the organization has helped the same in evolving the culture of the firm in the international markets. The analysis helps in the comparative understanding of the efficiency of the measures that are being used by the organizations while undertaking an entry mode.
References:
Akman, G. and Yilmaz, C., 2008. Innovative capability, innovation strategy and market orientation: an empirical analysis in Turkish software industry. International Journal of Innovation Management, 12(01), pp.69-111.
Al-Kaabi, M., Demirbag, M. and Tatoglu, E., 2010. International market entry strategies of emerging market MNEs: A case study of Qatar telecom. Journal of East-West Business, 16(2), pp.146-170.
Andiç, E., Yurt, Ö. and Baltac?o?lu, T., 2012. Green supply chains: Efforts and potential applications for the Turkish market. Resources, Conservation and Recycling, 58, pp.50-68.
Andiç, E., Yurt, Ö. and Baltac?o?lu, T., 2012. Green supply chains: Efforts and potential applications for the Turkish market. Resources, Conservation and Recycling, 58, pp.50-68.
Andreu, R., Claver, E., and Quer, D., 2017. Firm-specific factors and entry mode choice: An analysis of Chinese hotel chains. Tourism Economics, 23(4), 756-767.
Ang, S. H., Benischke, M. H., & Doh, J. P. (2015). The interactions of institutions on foreign
Anil, I., Tatoglu, E. and Ozkasap, G., 2014. Ownership and market entry mode choices of emerging country multinationals in a transition country: evidence from Turkish multinationals in Romania. Journal for East European Management Studies, pp.413-452.
Aydin, M. and Acikmese, S.A., 2007. Europeanization through EU conditionality: understanding the new era in Turkish foreign policy. Journal of Southern Europe and the Balkans Online, 9(3), pp.263-274.
Aydin, S. and Özer, G., 2005. The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of marketing, 39(7/8), pp.910-925.
Aydin, S. and Özer, G., 2005. The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of marketing, 39(7/8), pp.910-925.
between market share performance and firm survival. Journal of International
Blomstermo, A., Deo Sharma, D. and Sallis, J., 2006. Choice of foreign market entry mode in service firms. International Marketing Review, 23(2), pp.211-229.
Blomstermo, A., Deo Sharma, D. and Sallis, J., 2006. Choice of foreign market entry mode in service firms. International Marketing Review, 23(2), pp.211-229.
Brouthers, K. D. (2013). A retrospective on: Institutional, cultural and transaction cost
Brouthers, K. D. (2013). Institutional, cultural and transaction cost influences on entry mode
Brouthers, K.D. and Hennart, J.F., 2007. Boundaries of the firm: Insights from international entry mode research. Journal of management, 33(3), pp.395-425.
Brouthers, K.D. and Hennart, J.F., 2007. Boundaries of the firm: Insights from international entry mode research. Journal of management, 33(3), pp.395-425.
Brouthers, K.D. and Hennart, J.F., 2007. Boundaries of the firm: Insights from international entry mode research. Journal of management, 33(3), pp.395-425.
Brouthers, K.D., Brouthers, L.E. and Werner, S., 2008. Real options, international entry mode choice and performance. Journal of Management Studies, 45(5), pp.936-960.
Bu?ra, A. and Keyder, Ç., 2006. The Turkish welfare regime in transformation. Journal of European social policy, 16(3), pp.211-228.
Business Review, 23(6), 1109-1126.
Canabal, A. and White, G.O., 2008. Entry mode research: Past and future. International Business Review, 17(3), pp.267-284.
Canabal, A. and White, G.O., 2008. Entry mode research: Past and future. International Business Review, 17(3), pp.267-284.
Çetin, T. and Oguz, F., 2007. The politics of regulation in the Turkish electricity market. Energy Policy, 35(3), pp.1761-1770.
Çetin, T. and Oguz, F., 2007. The politics of regulation in the Turkish electricity market. Energy Policy, 35(3), pp.1761-1770.
Çetin, T. and Oguz, F., 2007. The reform in the Turkish natural gas market: A critical evaluation. Energy policy, 35(7), pp.3856-3867.
Chen, C., 2008. Entry mode selection for international construction markets: the influence of host country related factors. Construction Management and Economics, 26(3), pp.303-314.
choice and performance. Journal of International Business Studies, 44(1), 1-13.
Cizre, Ü. and Yeldan, E., 2005. The Turkish encounter with neo-liberalism: economics and politics in the 2000/2001 crises. Review of International Political Economy, 12(3), pp.387-408.
Cui, L. and Jiang, F., 2009. FDI entry mode choice of Chinese firms: A strategic behavior perspective. Journal of World Business, 44(4), pp.434-444.
Cui, L. and Jiang, F., 2009. FDI entry mode choice of Chinese firms: A strategic behavior perspective. Journal of World Business, 44(4), pp.434-444.
De Villa, M. A., Rajwani, T., & Lawton, T. (2015). Market entry modes in a multipolar world:
Decision. Journal of Economics & Management Strategy, 21(3), 849-871.
Demirbag, M. and Tatoglu, E., 2008. Competitive strategy choices of Turkish manufacturing firms in European Union. Journal of Management Development, 27(7), pp.727-743.
Demirbag, M., McGuinness, M. and Altay, A.P.H., 2010. Perceptions of institutional environment and entry mode. Management International Review, 50(2), pp.207-240.
Demirbag, M., Tatoglu, E. and Glaister, K.W., 2007. Factors influencing perceptions of performance: The case of western FDI in an emerging market. International Business Review, 16(3), pp.310-336.
Demirbag, M., Tatoglu, E. and Glaister, K.W., 2008. Factors affecting perceptions of the choice between acquisition and greenfield entry: The case of Western FDI in an emerging market. Management International Review, 48(1), pp.5-38.
Demirbag, M., Tatoglu, E. and Glaister, K.W., 2009. Equity-based entry modes of emerging country multinationals: Lessons from Turkey. Journal of World Business, 44(4), pp.445-462.
Development, 21(2), 301-312.
Dincer, O., Tatoglu, E. and Glaister, K.W., 2006. The strategic planning process: evidence from Turkish firms. Management Research News, 29(4), pp.206-219.
distance, and uncertainty. Journal of International Marketing, 20(4), 96-110.
Dow, D. and Larimo, J., 2009. Challenging the conceptualization and measurement of distance and international experience in entry mode choice research. Journal of International Marketing, 17(2), pp.74-98.
Dow, D. and Larimo, J., 2009. Challenging the conceptualization and measurement of distance and international experience in entry mode choice research. Journal of International Marketing, 17(2), pp.74-98.
Ellis, P.D., 2008. Does psychic distance moderate the market size–entry sequence relationship?. Journal of International Business Studies, 39(3), pp.351-369.
entry mode choice of small and medium-sized enterprises: The moderating influence of
Epstein, G.A. ed., 2005. Financialization and the world economy. Edward Elgar Publishing.
Forlani, D., Parthasarathy, M. and Keaveney, S.M., 2008. Managerial risk perceptions of international entry-mode strategies: The interaction effect of control and capability. International Marketing Review, 25(3), pp.292-311.
Gökgöz, F. and Atmaca, M.E., 2012. Financial optimization in the Turkish electricity market: Markowitz’s mean-variance approach. Renewable and Sustainable Energy Reviews, 16(1), pp.357-368.
Görür, F.K., Keser, R., Akçay, N., Dizman, S. and Okumu?o?lu, N.T., 2011. Radionuclides and heavy metals concentrations in Turkish market tea. Food control, 22(12), pp.2065-2070.
Grünig, R., & Morschett, D. (2012). Evaluating market entry modes. In Developing
Güler, C. and Alpaslan, M., 2009. Mineral content of 70 bottled water brands sold on the Turkish market: assessment of their compliance with current regulations. Journal of Food composition and Analysis, 22(7), pp.728-737.
Hilmersson, M., & Jansson, H. (2012). Reducing uncertainty in the emerging market entry
Hirst, P., Thompson, G., & Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Hohenthal, J., Johanson, J., & Johanson, M. (2014). Network knowledge and business
Holtbrügge, D., & Baron, A. (2013). Market entry strategies in emerging markets: An
Hortaçsu, A. and McAdams, D., 2010. Mechanism choice and strategic bidding in divisible good auctions: An empirical analysis of the turkish treasury auction market. Journal of Political Economy, 118(5), pp.833-865.
Hortaçsu, A. and McAdams, D., 2010. Mechanism choice and strategic bidding in divisible good auctions: An empirical analysis of the turkish treasury auction market. Journal of Political Economy, 118(5), pp.833-865.
influences on entry mode choice and performance. Journal of International Business
institutional study in the BRIC countries. Thunderbird International Business Review, 55(3),
International Strategies (pp. 123-148). Springer, Berlin, Heidelberg.
Kiri?çi, K., 2009. The transformation of Turkish foreign policy: The rise of the trading state. New Perspectives on Turkey, 40(1), pp.29-57.
knowledge safeguards and institutional safeguards. Journal of International Business
Koc, E. and Altinay, G., 2007. An analysis of seasonality in monthly per person tourist spending in Turkish inbound tourism from a market segmentation perspective. Tourism management, 28(1), pp.227-237.
Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-
Laufs, K., and Schwens, C., 2014. Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda. International Business Review, 23(6), 1109-1126.
López-Duarte, C. and Vidal-Suárez, M.M., 2010. External uncertainty and entry mode choice: Cultural distance, political risk and language diversity. International Business Review, 19(6), pp.575-588.
López-Duarte, C. and Vidal-Suárez, M.M., 2010. External uncertainty and entry mode choice: Cultural distance, political risk and language diversity. International Business Review, 19(6), pp.575-588.
Maekelburger, B., Schwens, C., & Kabst, R. (2012). Asset specificity and foreign market
market entry mode. Strategic Management Journal, 36(10), 1536-1553.
Marketing, 20(3), 50-64.
markets and entry modes selection. Journal of Small Business and Enterprise
Morschett, D., Schramm-Klein, H. and Swoboda, B., 2010. Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?. Journal of International Management, 16(1), pp.60-77.
Morschett, D., Schramm-Klein, H. and Swoboda, B., 2010. Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?. Journal of International Management, 16(1), pp.60-77.
Murray, J. Y., Ju, M., & Gao, G. Y. (2012). Foreign market entry timing revisited: Trade-off
Musso, F., & Francioni, B. (2014). International strategy for SMEs: criteria for foreign
Nielsen, B.B. and Nielsen, S., 2011. The role of top management team international orientation in international strategic decision-making: The choice of foreign entry mode. Journal of World Business, 46(2), pp.185-193.
Ozorhon, B., Dikmen, I. and Birgonul, M.T., 2006. Case-based reasoning model for international market selection. Journal of Construction Engineering and Management, 132(9), pp.940-948.
Petrou, A.P., 2009. Foreign market entry strategies in retail banking: Choosing an entry mode in a landscape of constraints. Long range planning, 42(5), pp.614-632.
process: on the relationship among international experiential knowledge, institutional
Puck, J.F., Holtbrügge, D. and Mohr, A.T., 2009. Beyond entry mode choice: Explaining the conversion of joint ventures into wholly owned subsidiaries in the People’s Republic of China. Journal of international business studies, 40(3), pp.388-404.
Raff, H., Ryan, M., & Stähler, F. (2012). Firm Productivity and the Foreign?Market Entry
Rasheed, H.S., 2005. Foreign entry mode and performance: The moderating effects of environment. Journal of Small Business Management, 43(1), pp.41-54.
relationship value in the foreign market. International Business Review, 23(1), 4-19.
resource commitment entry modes in international new ventures. International Business
Review, 21(4), 648-666.
Review, 24(3), 419-429.
Ripollés, M., Blesa, A., & Monferrer, D. (2012). Factors enhancing the choice of higher
Sakarya, S., Eckman, M. and Hyllegard, K.H., 2007. Market selection for international expansion: Assessing opportunities in emerging markets. International Marketing Review, 24(2), pp.208-238.
Sakarya, S., Eckman, M. and Hyllegard, K.H., 2007. Market selection for international expansion: Assessing opportunities in emerging markets. International Marketing Review, 24(2), pp.208-238.
Sanchez-Peinado, E. and Pla-Barber, J., 2006. A multidimensional concept of uncertainty and its influence on the entry mode choice: An empirical analysis in the service sector. International Business Review, 15(3), pp.215-232.
Sandberg, S. (2013). Emerging market entry node pattern and experiential knowledge of
Schuster, T., & Holtbrügge, D. (2012). Market entry of multinational companies in markets at
sized enterprises: A systematic review and future research agenda. International
Slangen, A.H. and Van Tulder, R.J., 2009. Cultural distance, political risk, or governance quality? Towards a more accurate conceptualization and measurement of external uncertainty in foreign entry mode research. International Business Review, 18(3), pp.276-291.
small and medium-sized enterprises. International Marketing Review, 30(2), 106-129.
Studies, 43(5), 458-476.
Studies, 44(1), 14-22.
Temin, P., 2013. The Roman market economy. Princeton University Press.
the bottom of the pyramid: A learning perspective. International Business Review, 21(5),
Tihanyi, L., Griffith, D.A. and Russell, C.J., 2005. The effect of cultural distance on entry mode choice, international diversification, and MNE performance: A meta-analysis. Journal of International Business Studies, 36(3), pp.270-283.
Tihanyi, L., Griffith, D.A. and Russell, C.J., 2005. The effect of cultural distance on entry mode choice, international diversification, and MNE performance: A meta-analysis. Journal of International Business Studies, 36(3), pp.270-283.
Tsang, E.W., 2005. Influences on foreign ownership level and entry mode choice in Vietnam. International Business Review, 14(4), pp.441-463.
Tsarouhas, D., 2009. The political economy of Greek–Turkish relations. Southeast European and Black Sea Studies, 9(1-2), pp.39-57.
Untangling the moderating effect of the political environment. International Business
Xu, K., Hitt, M. A., and Miller, S. R., 2017, January. A Decision-making Perspective of the International Entry Mode Choice. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 14323). Academy of Management.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
