| Summary: | 碩士 === 元智大學 === 管理碩士在職專班 === 104 === The present study employs the transaction cost theory, agency theory and Emerging Market Entry Strategy to examine two possible emerging market entry strategies – direct sales and agency distribution. Using manufacturers of plastic and rubber equipment as the empirical cases, this study explore how the focal firms formulate the entry strategies of directs sales and agency distribution. The results of this study show that, direct sales and distribution have their own advantages and disadvantages. The main advantages of direct sales include quick responds to customer’s needs, the creation of product niches, and access to first-hand information while the disadvantages are facing cognitive differences stemming from the cultural conflicts and increasing in costs and expenses. In contrast, the advantages of agency distribution are mitigating the cultural conflicts by hiring agents who share the same culture and who are able to enter the market. The focal firms could strengthen their relationship with the agents by continuing educating and training the agents and by using performance metrics and incentives, especially guaranteed returns, to stimulate the agents.
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