An examination of the market entry mode decision of Japanese firms in China

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Zhao, Lei
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MSc in International Business
Portobello College
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Research on market entry decision making indicates that this decision is one of the most important that can be made by the organization. Market entry will impact every facet of the organization's foreign operation. Even though current research on market entry mode and decision making provides a broad theoretical basis for understanding this process, empirical investigations into market entry mode have not been extensively developed in the literature. This is especially true with regard to market entry decision making of foreign firms. In an effort to help reduce current gaps in the empirical literature, this research examines market entry decision making of Japanese firms entering the Chinese market. Specifically, this research employs a qualitative case study methodology which examines data from primary (in-depth interviews) and secondary (current literature) research sources. Content analysis is employed to review the results acquired in the in-depth interviews. Analysis of the data suggests that while there are some correlations between Japanese market entry decision making and the current literature, there are prominent variables-such as culture-which play a significant role in market entry decision making for Japanese firms. The implications of this data are discussed along with the need for further research to better understand market entry decision making for foreign firms.