The role of networking and commitment in foreign market entry process: Multinational corporations in the Chinese automobile industry

Joong Woo Lee, Ibrahim Abosag, Jooyoung Kwak

Research output: Contribution to journalArticle

28 Citations (Scopus)

Abstract

This study addresses the role of business networking and commitment to local market when MNCs enter an emerging market. We investigate the reasons for variations in the speed of MNCs' foreign market entry. Particularly, we examine whether MNCs' networking with the key local actors facilitates MNCs' entry and whether learning and commitment in the context of networking affects the speed of MNCs' entry process in the Chinese automobile market. The study is based on the experiences of three MNCs, a U.S.-based firm, a European firm, and a Korean firm. Data is collected through in-depth interviews and through secondary sources related to the entry process of these cases. The cases illustrate that speed of foreign market entry is significantly influenced by business networking between MNCs and the key business and socio-political actors, since different types of business networking determine the level of learning and commitment. Our cases also show that the effects of business networking generated during the initial foreign market entry by the MNC may be different than those during sequential entries.

Original languageEnglish
Pages (from-to)27-39
Number of pages13
JournalInternational Business Review
Volume21
Issue number1
DOIs
Publication statusPublished - 2012 Feb 1

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Marketing

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