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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Keywords
International Risk And Entry Mode Strategy , Of Malaysian Public Listed Companies