Abstract
This study attempts to explain the timing of entry of firms in international markets. Based on the existing literature, we propose a framework that consists of firm-specific factors, industry/market factors, and host country factors. Empirical results, based on the entry information of U.S. Fortune 500 firms in China between 1979 and 1996, show that larger firms with greater level of internalization and scope economies are likely to enter this foreign market earlier. In addition, non-equity modes, competitors' behavior in the product market, and lower levels of country risk are significantly associated with early entry.
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*Vibha Gaba is a PhD student at the Lundquist College of Business, University of Oregon.
**Yigang Pan is Scotiabank Professor of International Business, Schulich School of Business, York University, and School of Business, University of Hong Kong (2000-2002).
***Gerardo Rivera Ungson is the Y.F. Chang Professor of International Business, College of Business, San Francisco State University, and Professor of Mgmt., LCB, University of Oregon.
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Gaba, V., Pan, Y. & Ungson, G. Timing of Entry in International Market: An Empirical Study of U.S. Fortune 500 Firms in China. J Int Bus Stud 33, 39–55 (2002). https://doi.org/10.1057/palgrave.jibs.8491004
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DOI: https://doi.org/10.1057/palgrave.jibs.8491004