International Risk And Entry Mode Strategy Of Malaysian Public Listed Companies

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Date
1997-10
Authors
TAN GUAN HOOI, BRIAN
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Abstract
As firms continue to tum towards international expansion as a strategic alternative, they must become increasingly aware of the role that international risk plays in strategic choices. The perception of international risk plays an important role in the fum's foreign market entry strategy. Different from earlier studies that have focused mainly on specific international risks, this study proposes an integrated model of international risk, and will test the influence of international risk perception on the choice of entry mode strategy. The respondents are Malaysian public listed companies who have ventured overseas in recent years. Firms will choose different entry mode strategy based on their perception of international risk. It is expected that all the variables of international risk, and not just one or two specific international risks influences the choice of entry mode strategy. The findings show that firms perceiving higher levels of international risk pursued ~ntry mode strategies that require lower resource commitment and control,' while firms perceiving lower levels of international risk pursued entry mode strategies that require higher resource commitment and control.
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International Risk And Entry Mode Strategy , Of Malaysian Public Listed Companies
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