Determinants of Mncs' Mode of Entry into Emerging Markets: Some Evidence from India
Sumon K. Bhaumik
Aston University, Aston Business School; Institute for the Study of Labor (IZA); University of Michigan at Ann Arbor - Stephen M. Ross School of Business, William Davidson Institute
While the literature on the determinants of entry mode strategies of MNCs in new countries is significant, it largely ignores emerging markets. This paper addresses this lacuna in the literature using unique firm-level data from India. The results suggest that the basis of a MNC's strategy vis a vis large emerging markets is to enter soon after the initiation of reforms to capture the potential benefits from a "first mover" advantage, but to limit both their exposure to these markets, and the extent of technology transfer to their host country operations until a much later date.
Number of Pages in PDF File: 29
Keywords: MNC, Greenfield, acquisition, joint venture, agency problem, transactions cost, India
JEL Classification: F23, C21working papers series
Date posted: September 9, 2004 ; Last revised: July 31, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.547 seconds