Abstract
Market share performance and profitability of overseas business activities has long been an important issue in international business. In this study, we explore the impact of order and mode of market entry into an overseas market. We find that early entrants have significantly higher market shares and profitability than late followers. We also find that equity joint ventures have a higher profitability than either wholly owned operations or contractual joint ventures. A significant interaction exists between order and mode of market entry. As expected, firm efficiency and size affect the performance of firms. These results are based on the business activities of a sample of 14,466 foreign firms in China in 1995.
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*Yigang Pan (Ph.D., Columbia University) is Associate Professor of Marketing, Lundquist College of Business, University of Oregon and School of Business, the University of Hong Kong (1989–2000).
**Shaomin Li (Ph.D., Princeton University) is Associate Professor at Department of Marketing, City University of Hong Kong.
***David K. Tse (Ph.D., UC Berkeley) is Professor of Marketing and Director of Chinese Management Center at the University of Hong Kong.
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Pan, Y., Li, S. & Tse, D. The Impact of Order and Mode of Market Entry on Profitability and Market Share. J Int Bus Stud 30, 81–103 (1999). https://doi.org/10.1057/palgrave.jibs.8490061
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DOI: https://doi.org/10.1057/palgrave.jibs.8490061