How Do Companies Go Global: Choices and Issues between Entry Strategies

June 3, 2013 Leave a comment

How Do Companies Go Global: Choices and Issues between Entry Strategies

Nancy Hubbard Goucher College – Department of Business Management

April 9, 2013
Conquering Global Markets: Secrets from the World’s Most Successful Multinationals, pp. 40-58, Nancy Hubbard, Palgrave Macmillan, 2013.

Abstract: 
This chapter is from the book “Conquering Global Markets: Secrets from the World’s Most Successful Multinationals” which presents the findings of one of the largest research projects undertaken of its type. Senior executives from fifty multinational companies from sixteen countries were interviewed to understand the issues, risks, challenges and key success factors of how companies have globalized using greenfield investment, joint ventures and alliances as well as mergers and acquisitions. This chapter discusses the historical routes and factors influencing the market entry mode choices made. Historical patterns of internationalization are discussed including the Uppsala Theory, networking theory, “born global”, and early internationalizer theories. A fifth pattern is identified and discussed, the “opportunistic globalizer”. Those interviewed for the research indicated that four factors heavily influenced their choice of entry mode. Those factors were control, speed, local market awareness, and resource allocation all of which are discussed in depth. Further factors that can influence market entry choice are also discussed and include: openness to inward investment, corruption, competition, risk markets, and intellectual property rights are also discussed. Quotes from participants are used throughout the chapter and a case study highlighting the expansion profile of Teva Pharmaceuticals is summarized.

Filed under Research

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment