THE IMPACT OF FOREIGN MARKET ENTRY DECISIONS ON THE PERFORMANCE OF MULTINATIONAL RETAILERS: A COMPARATIVE STUDY OF ASEAN COUNTRIES
Keywords:
Foreign Market Entry Decisions, Entry Location Decision, Entry Timing Decision, Entry Mode Decision, Multinational Retailer (MNR), Performance, ASEAN CountriesAbstract
Although the foreign market entry decision model has been broadly discussed in international business literature for several decades, there have been limited, isolated, and contradictory findings on the relationship between foreign market entry decisions and multinational performance, especially in the retail industry. Longitudinal samples of 172 multinational retailers operating in 6 ASEAN markets were selected from Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, and the Kruskal-Wallis one way analysis of variance, and the Bonferroni Correction post-hoc test were adopted to test the effect of three fundamental foreign market entry decisions (entry location, entry timing, entry mode) on the subsequent performance (sales volume and market share) of multinational retailers in a nine-year period (2007-2015). The results indicated that entry location, entry timing, and entry mode had statistically significant impacts on multinational retailers’ performance. Multinational retailers’ performance in terms of sales volume and markets share varied across ASEAN markets. Multinational retailers entering ASEAN markets earlier have performed better than later entrants, and the shared-control mode was found to be the most efficient operational form for multinational retailers in the ASEAN countries context.
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