Category - Franz HAAS

University of Latvia

Franz HAAS

Deciding the Entry Mode in Chinese Markets. Practices Managers Should Avoid Pursuing

This research project considers Austrian enterprises, which have been pursuing business partnerships and relations with Chinese companies. One specific question of the research aimed at finding out which factors lead to pronounced difficulties experienced by companies having chosen a specific market entry strategies. This research question was explored through a primary research of 86 managers participating in an online survey in 2016. The data analysis implied an exploratory factor analysis of ten pre-defined factors that led to a new model of five components depicting narrow decision-making processes, namely: relying too much on company-related external expertise, national- or international-related external expertise, isolated practices like adopting what other companies do, purely financial-driven processes, or encapsulated decision processes. The factor scores’ analysis shows that there are significant differences between companies from different economic sectors.

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