Determinants of Mncs' Mode of Entry into Emerging Markets: Some Evidence from India

29 Pages Posted: 9 Sep 2004 Last revised: 31 Jul 2008

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

Abstract

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.

Keywords: MNC, Greenfield, acquisition, joint venture, agency problem, transactions cost, India

JEL Classification: F23, C21

Suggested Citation

Bhaumik, Sumon K., Determinants of Mncs' Mode of Entry into Emerging Markets: Some Evidence from India. Available at SSRN: https://ssrn.com/abstract=533722 or http://dx.doi.org/10.2139/ssrn.533722

Sumon K. Bhaumik (Contact Author)

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, West Midlands B47ET
United Kingdom

Institute for the Study of Labor (IZA) ( email )

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

University of Michigan at Ann Arbor - Stephen M. Ross School of Business, William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

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