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How do cultural and institutional factors influence the entry mode decision of a multinational firm? A case study of a Norwegian MN

Gjengset, Tora; Lindelien, Ellen Carreno
Master thesis
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URI
http://hdl.handle.net/11250/2625290
Date
2019
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  • Master of Science [1117]
Abstract
This Master Thesis investigates how cultural and institutional factors affect the

entry mode choice of a multinational firm. Previous research has found equivocal

results regarding the effect of these factors on the entry mode choice. One metaanalysis

has found that one third of all studies found one particular effect, another

third found the opposite, and the last third found no effect. The span of the results

is therefore wildly conflicting, and in need of further investigation. We therefore

conducted a singular case study on a multinational firm in order to gather

information-rich data on the effect of these factors on the entry mode decision.

We conducted semi-structured interviews with employees from each of the

regions that the firm operates in. These employees have been present in the early

stages of market entry and can therefore paint a comprehensive picture of the

factors that affect the entry mode choice.

We found that cultural and institutional factors did not have an effect on the entry

mode choice, but rather on the establishment mode, the ownership structure, and

on the type of partner used, whether local or foreign. Throughout the paper we

refer to these as variations within the entry mode choice. The entry mode choice

was found to be determined by firm- and industry characteristics, and the firm

uses a partnership structure in all markets in which they operate in order to reduce

the amount of resources committed in each market and to reduce the risk that is

tied to the high failure rate of the industry.
Description
Masteroppgave(MSc) in Master of Science in Business, Strategy - Handelshøyskolen BI, 2019
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Handelshøyskolen BI

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