Journal Articles
The internationalization of dominant market leaders such as Haier (China), Tata Group (India) and CEMEX (Mexico) in emerging economies has attracted immense interest among academic researchers. A less-explored area is how non-dominant, second-movers venture into the international market. How do small players connect with foreign customers while operating in the shadows of the industry leader? What decisions are serendipitous and what actions are deliberate? What are the key environmental factors and internal decisions that propel a secondary player to place more chips in the international market? This case study addresses these questions using an example of a construction material manufacturer from Southeast Asia. It could be used as a discussion starter in an international business course, especially for topics such as entry strategy, export marketing and organization of international business.
This article explores the relevance of different entry modes for Danish exporting small and medium enterprises (SMEs). Internal and external resources that influence the choice of entry modes into the Brazil, Russia, India and China (BRIC) markets were investigated from both resource-based view (RBV) and market-based view (MBV). The survey conducted by the University of Southern Denmark in 2012 was based on a sample of 177 Danish SMEs. The results of this study showed that Danish companies entering the BRIC markets preferred low commitment modes. The more traditional internal factors (control, flexibility and risk) were less important than personnel and financial resources. The most important external factor was market potential, whereas trade barriers, cultural distance as well as the political and economic risk were viewed as the main obstacles when internationalizing into distant markets. Managers can compensate the loss of control when choosing low commitment modes into distant markets by forming business networks and thereby gaining local knowledge.
The Asia-Pacific region was expected to remain a significant destination and source of FDI in 2019and 2020. However, sluggish growth in Greenfield investment may hamper the ability of the region to attract the same levels of investment in 2019, while a decline in investment flows in 2020 would be expected if the uncertainty related to international trade continued and companies continued to consolidate their value chains. Therefore, investment prospects for the region remained subdued and tied to unfolding risks of ongoing global political and economic incidences, such as Brexit, the United States-China trade war, growing protectionist sentiments and a retreat from multilateralism across the world, and civil unrest in Hong Kong, China.