Title: Foreign market entry mode choice of Australian firms

Authors: Ho Yin Wong, Bill Merrilees

Addresses: School of Commerce and Marketing, Central Queensland University, Bruce Highway, Rockhampton, Queensland 4702, Australia. ' Department of Marketing, Griffith Business School, Griffith University, Gold Coast campus, Queensland 4222, Australia

Abstract: The purpose of this study is to explore why firms choose an export mode over a non-export mode. Based on the institutional and research and capability perspectives, a theoretical model incorporating brand orientation, commitment, experience, industry group and foreign market competition intensity was empirically tested. A mail-out survey obtained responses from more than 300 internationally active Australian firms. Statistically significant results were found with three variables. Industry competition intensity effect and service industry encouraged the choice of an export mode. A strong brand orientation encouraged a non-export mode, such as direct foreign investment.

Keywords: market entry; entry mode selection; brand orientation; risk preferences; services; Australia; exports; commitment; experience; industry group; foreign market competition.

DOI: 10.1504/IJTGM.2009.028992

International Journal of Trade and Global Markets, 2009 Vol.2 No.3/4, pp.250 - 266

Published online: 20 Oct 2009 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article