Drivers of Success for Market Entry into China and India

40 Pages Posted: 26 Sep 2007 Last revised: 17 Dec 2007

Joseph Johnson

University of Miami - Department of Marketing

Gerard J. Tellis

University of Southern California - Marshall School of Business, Department of Marketing

Abstract

China and India are the fastest growing major markets in the world and the most popular markets for foreign entrants. Yet no study has examined the success or failure of these entries. Using a new definition of success and a uniquely compiled archival database, the authors analyze whether and why firms that entered China and India succeeded or failed. The most important findings are rather counter-intuitive: smaller firms are more successful than larger firms and greater openness of the emerging market have lower success. Other findings are that success is higher with earlier entry, greater control of entry mode, and shorter cultural and economic distance between the home and host nations. Importantly, with or without control for these drivers, success in India is lower than that in China. The authors discuss the reasons for and implications of these findings.

Suggested Citation

Johnson, Joseph and Tellis, Gerard J., Drivers of Success for Market Entry into China and India. Journal of Marketing, Forthcoming; Marshall School of Business Working Paper No. MKT 10-07. Available at SSRN: https://ssrn.com/abstract=1017071

Joseph Johnson (Contact Author)

University of Miami - Department of Marketing ( email )

P.O. Box 248126
Florida
Coral Gables, FL 33124
United States

Gerard J. Tellis

University of Southern California - Marshall School of Business, Department of Marketing ( email )

Hoffman Hall 701
Los Angeles, CA 90089-0443
United States
213-740-5031 (Phone)
213-740-7828 (Fax)

HOME PAGE: http://gtellis.net

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