The External and Internal Factors That Influence the Choice of Foreign Entry Modes at Wuhan Iron and Steel Corporation
Affiliation(s)
1 School of Economics and Management, China University of Geosciences (Wuhan), Wuhan, China. 2 Lingnan (University) College, Sun Yat-sen University, Guangzhou, China.
1 School of Economics and Management, China University of Geosciences (Wuhan), Wuhan, China. 2 Lingnan (University) College, Sun Yat-sen University, Guangzhou, China.
ABSTRACT
The purpose of this research is to increase our understanding of how the process of internationalization is intertwined with the set of external and internal factors that determine choice of foreign entry mode at Wuhan Iron and Steel Corporation (WISCO). To satisfy the purpose of our study, the following research question was addressed: RQ: How can the influence of external and internal factors on WISCO’s choice of foreign entry mode be described? In this paper, a selection of the literature and existing research on the choice of foreign entry modes are reviewed, and at the same time, we develop a conceptual framework based on the theories and references that were reviewed, and then going more in detail into the external and internal factors influencing the choice of foreign target market. A summary of conceptual framework was presented, which then will be used as a basis for the data collection. Data collected on the company WISCO that was analyzed against existing theories brought us to certain conclusions which we present at the end of this paper. The fact that a single case would not allow us to generalize is not overlooked. However, in-depth analysis of the company WISCO has shed light on aspects of internationalization choice of entry modes which deserve consideration.
The purpose of this research is to increase our understanding of how the process of internationalization is intertwined with the set of external and internal factors that determine choice of foreign entry mode at Wuhan Iron and Steel Corporation (WISCO). To satisfy the purpose of our study, the following research question was addressed: RQ: How can the influence of external and internal factors on WISCO’s choice of foreign entry mode be described? In this paper, a selection of the literature and existing research on the choice of foreign entry modes are reviewed, and at the same time, we develop a conceptual framework based on the theories and references that were reviewed, and then going more in detail into the external and internal factors influencing the choice of foreign target market. A summary of conceptual framework was presented, which then will be used as a basis for the data collection. Data collected on the company WISCO that was analyzed against existing theories brought us to certain conclusions which we present at the end of this paper. The fact that a single case would not allow us to generalize is not overlooked. However, in-depth analysis of the company WISCO has shed light on aspects of internationalization choice of entry modes which deserve consideration.
Cite this paper
Ravelomanana, F. , Yan, L. , Mahazomanana, C. and Miarisoa, L. (2015) The External and Internal Factors That Influence the Choice of Foreign Entry Modes at Wuhan Iron and Steel Corporation. Open Journal of Business and Management, 3, 20-29. doi: 10.4236/ojbm.2015.31003.
Ravelomanana, F. , Yan, L. , Mahazomanana, C. and Miarisoa, L. (2015) The External and Internal Factors That Influence the Choice of Foreign Entry Modes at Wuhan Iron and Steel Corporation. Open Journal of Business and Management, 3, 20-29. doi: 10.4236/ojbm.2015.31003.
References
[1] De Búrca, S., Brown, L. and Fletcher, R. (2004) International Marketing: An SME Perspective. 1st Edition, Financial Times Prentice Hall, Harlow, 720 p. [2] Root, F.R. (1994) Entry Strategies for International Markets. Revised and Expanded Edition, Lexington Books, New York, 324 p. [3] Brassington, F. and Pettitt, S. (2000) Principles of Marketing. 2nd Edition, Financial Times Management, Harlow, 1079 p. [4] Wild, J.J., Wild, K.L. and Han, J.C.Y. (2003) International Business. 2nd Edition, Prentice Hall, Upper Saddle River, 528 p. [5] Armstrong, G. and Kotler, P. (2005) Marketing: An Introduction. 7th Edition, Prentice Hall, Upper Saddle River, 581 p. [6] Hollensen, S. (2001) Global Marketing: A Market-Responsive Approach. 2nd Edition, Financial Times Prentice Hall, Harlow, 667 p. [7] Fredrick, E. and Webster, J. (1992) The Changing Role of Marketing in the Corporation. Journal of Marketing, 56, 1-17. [8] Yin, R.K. (2003) Case Study Research: Design and Methods. 3rd Edition, Sage Publications, Thousand Oaks, 181 p. [9] Czinkota, M.R. and Ronkainen, I.A. (2004) International Marketing. 7th Edition, Thomson Learning, Mason, 666 p. [10] Albaum, G., Duerr, E. and Strandskov, J. (2002) International Marketing and Export Management. 4th Edition, Financial Times Prentice Hall, Harlow, 637 p. [11] Hollensen, S. (2003) Marketing Management: A Relationship Approach. Financial Times Prentice Hall, Harlow, 787 p. [12] Kotabe, M. and Czinkota, M.R. (1992) State Government Promotion of Manufacturing Exports: A Gap Analysis. Journal of International Business Studies, 23, 637-658. [13] Calof, J.L. and Viviers, W. (1998) Internationalization Behavior of Small and Medium Sized South African Enterprises. Blackwell Publishing, Malden. [14] Czinkota, M.R. (2001) A National Export Assistance Policy for New and Growing Businesses. In: Czinkota, M.R. and Ronkainen, I.A., Eds., Best Practices in International Business, South-Western Publishing Co., Cincinnati. [15] Farhang, M. (2001) Internet and Export Marketing of SMEs: Experiences of Website Use and Perceptions among Swedish Firms. Research Report, Lulea University of Technology, Lulea, 40 p. [16] Johansson, J. and Vahlne, J.E. (1977) The Internationalization Process of the Firm—A Model of Knowledge, Development and Increasing Foreign Market Commitment. Journal of International Business Studies, 8, 23-32. http://dx.doi.org/10.1057/palgrave.jibs.8490676 [17] Dahringer, L.D. and Mühlbacher, H. (1991) International Marketing: A Global Perspective. Addison-Wesley Publishing Company Inc., Reading, 677 p. [18] Jobber, D. and Whitelock, J. (1994) The Impact of Competitor Environment on Initial Market Entry in a New, Non-Domestic Market. Proceedings of the Marketing Education Group Conference, Coleraine, 4-6 July 1994. [19] Lewis III, H. and Richardson, J.D. (2001) Why Global Commitment Really Matters! Institute for International Economics, Washington DC. [20] Jobber, D. (2004) Principles and Practice of Marketing. 4th Edition, McGraw-Hill International Ltd., Berkshire, 942 p.
[1] De Búrca, S., Brown, L. and Fletcher, R. (2004) International Marketing: An SME Perspective. 1st Edition, Financial Times Prentice Hall, Harlow, 720 p. [2] Root, F.R. (1994) Entry Strategies for International Markets. Revised and Expanded Edition, Lexington Books, New York, 324 p. [3] Brassington, F. and Pettitt, S. (2000) Principles of Marketing. 2nd Edition, Financial Times Management, Harlow, 1079 p. [4] Wild, J.J., Wild, K.L. and Han, J.C.Y. (2003) International Business. 2nd Edition, Prentice Hall, Upper Saddle River, 528 p. [5] Armstrong, G. and Kotler, P. (2005) Marketing: An Introduction. 7th Edition, Prentice Hall, Upper Saddle River, 581 p. [6] Hollensen, S. (2001) Global Marketing: A Market-Responsive Approach. 2nd Edition, Financial Times Prentice Hall, Harlow, 667 p. [7] Fredrick, E. and Webster, J. (1992) The Changing Role of Marketing in the Corporation. Journal of Marketing, 56, 1-17. [8] Yin, R.K. (2003) Case Study Research: Design and Methods. 3rd Edition, Sage Publications, Thousand Oaks, 181 p. [9] Czinkota, M.R. and Ronkainen, I.A. (2004) International Marketing. 7th Edition, Thomson Learning, Mason, 666 p. [10] Albaum, G., Duerr, E. and Strandskov, J. (2002) International Marketing and Export Management. 4th Edition, Financial Times Prentice Hall, Harlow, 637 p. [11] Hollensen, S. (2003) Marketing Management: A Relationship Approach. Financial Times Prentice Hall, Harlow, 787 p. [12] Kotabe, M. and Czinkota, M.R. (1992) State Government Promotion of Manufacturing Exports: A Gap Analysis. Journal of International Business Studies, 23, 637-658. [13] Calof, J.L. and Viviers, W. (1998) Internationalization Behavior of Small and Medium Sized South African Enterprises. Blackwell Publishing, Malden. [14] Czinkota, M.R. (2001) A National Export Assistance Policy for New and Growing Businesses. In: Czinkota, M.R. and Ronkainen, I.A., Eds., Best Practices in International Business, South-Western Publishing Co., Cincinnati. [15] Farhang, M. (2001) Internet and Export Marketing of SMEs: Experiences of Website Use and Perceptions among Swedish Firms. Research Report, Lulea University of Technology, Lulea, 40 p. [16] Johansson, J. and Vahlne, J.E. (1977) The Internationalization Process of the Firm—A Model of Knowledge, Development and Increasing Foreign Market Commitment. Journal of International Business Studies, 8, 23-32. http://dx.doi.org/10.1057/palgrave.jibs.8490676 [17] Dahringer, L.D. and Mühlbacher, H. (1991) International Marketing: A Global Perspective. Addison-Wesley Publishing Company Inc., Reading, 677 p. [18] Jobber, D. and Whitelock, J. (1994) The Impact of Competitor Environment on Initial Market Entry in a New, Non-Domestic Market. Proceedings of the Marketing Education Group Conference, Coleraine, 4-6 July 1994. [19] Lewis III, H. and Richardson, J.D. (2001) Why Global Commitment Really Matters! Institute for International Economics, Washington DC. [20] Jobber, D. (2004) Principles and Practice of Marketing. 4th Edition, McGraw-Hill International Ltd., Berkshire, 942 p.