A COMPARATIVE ANALYSIS OF MARKET ENTRY MODE OF SOUTH KOREAN FIRMS IN CHINA AND VIETNAM

• Main Authors: Hoon Park, Gil-Sung Kim
• Format: Article
• Language: English
• Published: People & Global Business Association (P&GBA) 2007-03-01
• Series: Global Business and Finance Review
• Subjects: market entry mode; host country factor; firm size; locational advantage
• Online Access: http://www.gbfrjournal.org/pds/journal/thesis/20150623102438-ZHPMC.pdf

This study examines the market entry mode of South Korean firms(henceforth Korean firms) in China and Vietnam. We are proposing a model that incorporates how firm-specific factors and host country factors affect Koran firms’ decisions on which entry mode each chooses. We tested six (6) hypotheses using two different sets of data; one comprised of 294 projects in China, the other comprised of 218 projects in Vietnam. Empirical results indicate that firm size strategic purpose, host country’s experience in including FDI, and level of locational advantage are the important determinants of Korean firms’ choices of entry mode in China and Vietnam.