Int. J. of Trade and Global Markets   »   2013 Vol.6, No.1

 

 

Title: Market entry decisions in emerging economies: the choice of local intermediaries as key determinant of competitive sustainability. Examining the case of a leading MNC entering the Maghreb region

 

Authors: Davide Sola; Jerome Couturier; Cristina Raiciu; Sandro Cuzzolin

 

Addresses:
ESCP Europe, 527 Finchley Road - Hampstead, London NW3 7BG, UK
ESCP Europe, 527 Finchley Road - Hampstead, London NW3 7BG, UK
3H Partners LLP, 25, Southampton Buildings, London, WC2A 1AL, UK
3H Partners LLP, 25, Southampton Buildings, London, WC2A 1AL, UK

 

Abstract: The purpose of this paper is to examine how local market factors influence the choice of the mode of market entry of MNCs in emerging economies and to propose a framework that will guide companies when making their entry decisions. It is based upon a thorough review of the literature and a longitudinal two year case study observing a leading MNC in its successful establishment in three key markets in the Maghreb region (Tunisia, Morocco and Libya) which followed an unsuccessful previous attempt. The research confirmed the importance of local market factors, in particular the key role of intermediaries for the development of a sustainable business model. The paper complements the more prevalent research approach belonging to the resource-based view, contributing to the body of knowledge on international market entry. Furthermore through its managerial implications can guide international MNCs in their choice of mode of entry in emerging markets.

 

Keywords: market entry strategy; role of intermediaries; MNCs; multinational corporations; Maghreb region; local market factors; cross-border strategy; market entry decisions; emerging economies; local intermediaries; Tunisia; Morocco; Libya.

 

DOI: 10.1504/IJTGM.2013.051549

 

Int. J. of Trade and Global Markets, 2013 Vol.6, No.1, pp.51 - 65

 

Available online: 22 Jan 2013

 

 

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