• Journal of the Korean Society of Clothing and Textiles
• /
• v.33 no.11
• /
• pp.1719-1732
• /
• 2009

A firm seeking to enter a foreign market must make an important strategic decision of which market entry mode to use. Because entry modes involve resource commitments, the initial choice by a firm on a particular entry mode is difficult to change without a considerable loss of time and money. Substantial prior research has been undertaken to explain why firms select a particular entry mode into global markets. However, there exists limited research on this area in the field of foreign apparel brands in Korea, although some research has analyzed influential entry mode factors when Korean textile and clothing companies went overseas. This study reviews prior research on the entry mode choice and analyzes the factors that influence the entry mode choice for 510 foreign clothing brands in Korea. Price range, clothing types, distribution strategy, and cultural distance were considered as influential determinants for different entry mode choices. Crosstabs with a chi-square test and logistic regression are used for analysis. This study shows that high-priced brands and luxury brands are associated with the export orientated entry mode in the Korean market. Brands that pursued the strategy of multiple distribution channels showed a preference for a licensing mode or direct investment over other entry modes, and brands from higher-cultural-distance countries entered the Korean clothing market by licensing mode. The findings of this study are appropriate for the strategic planning of foreign apparel intent on entering the Korean market or for Korean apparel firms planning to enter the global market.

• International Commerce and Information Review
• /
• v.11 no.4
• /
• pp.183-214
• /
• 2009

We identify key theoretical approaches, constructs, and primary variables of interest that exist in the foreign market entry mode articles. This provides fertile ground for continued development in our foreign market entry mode research. Using the integrated framework, this paper examines the determinants of foreign market entry mode choice by Korean firms and the impact of the entry mode choice on performance in a unified model. Using a database of KIS-VALUE in Korea from 2003 to 2005, we find that the hypothesized effects of related factors on entry modes are partially supported.

• Asia-Pacific Journal of Business
• /
• v.7 no.1
• /
• pp.59-69
• /
• 2016

An extensive body of research on the effects of country-of-origin has emerged in the international marketing and business literature streams. Nonetheless, extant studies do not satisfactorily demonstrate whether and how a foreign firm's choice of market entry mode influences consumers' purchase intentions of its product in country-related affect contexts. Using a survey and an experimental design, we aimed to provide evidence of the effects of the choice on consumers' evaluation and attitude of its product in an animosity context and in a national image context. Through the survey, we collected data regarding consumer animosity, national image, product evaluation, and product attitude from 185 university students and tested the hypotheses that consumer animosity and national image have effects on foreign product evaluation and attitude. The results of the survey research show that personal animosity has a negative effect on consumers' evaluation of foreign products and that a country's image regarding economics has positive effects on consumers' attitude toward foreign products as well as consumers' evaluation of foreign products. In the experimental design, we divided subjects into four groups and exposed them to several descriptions of hypothetical purchase situations. Conducting a 2 (market entry modes)${\times}2$ (country-of-origin) ANOVA, we tested the hypothesis that a market entry mode influences foreign product evaluation and attitude. The results of the experimental study reveal that in a high country-related product association (Germany), market entry modes have insignificant effects on foreign product evaluation and attitude. In addition, in a low country-related product association (China), international partnership has more positive effects on foreign product evaluation and attitude than does exporting.

• International Journal of Advanced Culture Technology
• /
• v.11 no.2
• /
• pp.330-344
• /
• 2023

This research report cuts across management sciences (market strategy entry mode development) and innovative technology (Electric Vehicle (EV)) alongside measures to submerge global warming. The development of a successful entry mode for the electric Vehicle into the African continent is the main objective of the study. The study focuses on an analysis of how electric car manufacturers can enter the African market in other to achieve global sustainability and social responsibility. The methodology is based on identifying the factors that affect the choice of an entry mode into international markets by multinational companies desiring to leverage their revenue through a foreign market. It also offered a quantitative approach that can support the economic and sustainability entry mode model for EVs and a qualitative approach of Porter's five forces analysis as an entry mode coaching tool for EVs. These proxies are used in quite a wide range of multivariate statistical methods (trend analysis, ratio, and probability, comparative t-test technique, auto-regression, and ordinary least square technique). The result acknowledges joint venture and setting of the plant (physical presents) as the optimal entry mode in African EV market. It requires the EV manufacturers a tire-free emission innovation technology in order to optimize the global sustainability initiative.

• Korea Trade Review
• /
• v.42 no.1
• /
• pp.189-215
• /
• 2017

This study analyzes the determinants of the choice of foreign direct investment mode by Korean fashion firms in entering into foreign markets. We have established hypotheses regarding their choice among three classical entry modes including a wholly-owned subsidiary, a joint venture and an M&A based on factors such as the investing firm's size, international experience and international strategy type, host market potentials, cultural distance and foreign investment risk. By conducting multiple logistic regression over secondary data on 100 Korean fashion firms, we found that all variables but cultural distance were statistically significant. The results may contribute to advancing international business theory on the fashion industry and developing fashion firms' global strategy.

• Journal of Industrial Convergence
• /
• v.2 no.2
• /
• pp.85-99
• /
• 2004

Recently MNC's(multinational companies) Worldwide have been expanding their own territories in the wake of acceleration and open-door policy of global competition. So, In this study, the main goal is conduct an empirical research for MNC's contingency factors and entry modes. Through examining elements of success and limitations of foreign companies in the domestic market, a resulting purpose can be suggested such as developing attractive foreign investment policy. The results in this study are as below.

• Journal of Industrial Convergence
• /
• v.1 no.1
• /
• pp.71-97
• /
• 2003

In this study, the main goal is conduct an empirical research for MNC's(multinational companies) contingency factors and entry modes. Through examining elements of success and limitations of foreign companies in the domestic market, a resulting purpose can be suggested such as developing attractive foreign investment policy. The results in this study are as below. The results from Logistic Regression Analysis there were indications for preference factors for WOS (Wholly Owned Subsidiary). The factors were 'Strategic Motivation', 'Intelligent Property', and 'Market Latent Purchasing Power'. For JV (Joint Venture) there were preferred factors such as 'Degree of Using Product Factors', 'Differential Products Development Ability', and 'Systematic Incentives'. However, this thesis is limited to identifying clear causal relationship between the 'Performance' of foreign investment enterprise which entered WOS or JV and various factors which were suggested in the contingency factors (independent variables).

• International Commerce and Information Review
• /
• v.14 no.1
• /
• pp.115-137
• /
• 2012

This study examines the performance impacts of entry mode choice based on the perceptions of managers of a large sample of South Korean foreign MNEs in Mongolia. The purpose of this study is to build on existing research by examining the extent to which the South Korean companies investment in Mongolia. It is necessary to establish and execute optimal entry strategy according to environmental features in order to survive as a competitive international enterprise in the extensive Mongolia markets. This study finally seek a plan to enhance the performance of the cross-cultural companies. The results of this study are as stated as follows. the relationships between the environmental factors and entry strategies are, statistically, significantly positive. The relationships between the entry strategies and performance in Korean companies are, statistically, significantly positive. the relationships between companies' environmental factors and performance, the environmental features of cross-cultural companies are positive. We find that Korean affiliate performance is a multidimensional and complex phenomenon, which may be properly explained by multiple factors, including the industrial, environmental, and cultural factor, that go beyond initial entry mode choices in Mongolia market. These results make theoretically optimal entry mode decisions and whether or not this entry mode choice is related to enhanced performance of Korean companies to Mongolia market.

• Journal of Distribution Science
• /
• v.17 no.1
• /
• pp.47-56
• /
• 2019

Purpose - This case study illustrates the story of eBay Korea, which owns two most leading Korean open market companies, AUCTION and Gmarket. The main concerns are to take over the Korean top domestic companies one by one, then, emerge these two giants through its well-developed post-merger Integration by eBay, an American multinational corporation. Research design, data, and methodology - This case explores various secondary resources such as periodicals, annual reviews, magazine, news articles, commentaries, even some interview materials related to 'eBay Korea' and industry source on condition of anonymity based on the critical reviewing of existing studies on these topics as well. Results - The findings of this study show the merger and acquisition of two market leaders in Korea is the only successful case in Asian Markets. The eBay's choice of entry mode is appropriate considering the timing, synergy and efficiency by sharing their resources. Conclusions - This study examines the successful entry and settlement process of foreign, multinational company through mergers and acquisitions in the Korean market. This would be a valuable in the studies of International Business and Global entry or distribution strategy in the e-commerce and open market dealing with M&A and its post-merger integration.