The External and Internal Factors That Influence the Choice of Foreign Entry Modes at Wuhan Iron and Steel Corporation

Fidelys Ravelomanana¹, Liang Yan¹, Christophe Mahazomanana¹, Leoncine Paul Miarisoa²

¹School of Economics and Management, China University of Geosciences (Wuhan), Wuhan, China.
²Lingnan (University) College, Sun Yat-sen University, Guangzhou, China.

DOI: 10.4236/ojbm.2015.31003                

Abstract

The purpose of this research is to increase our understanding of how the process of internationalization is intertwined with the set of external and internal factors that determine choice of foreign entry mode at Wuhan Iron and Steel Corporation (WISCO). To satisfy the purpose of our study, the following research question was addressed: RQ: How can the influence of external and internal factors on WISCO’s choice of foreign entry mode be described? In this paper, a selection of the literature and existing research on the choice of foreign entry modes are reviewed, and at the same time, we develop a conceptual framework based on the theories and references that were reviewed, and then going more in detail into the external and internal factors influencing the choice of foreign target market. A summary of conceptual framework was presented, which then will be used as a basis for the data collection. Data collected on the company WISCO that was analyzed against existing theories brought us to certain conclusions which we present at the end of this paper. The fact that a single case would not allow us to generalize is not overlooked. However, in-depth analysis of the company WISCO has shed light on aspects of internationalization choice of entry modes which deserve consideration.

Keywords

Internationalization, Choice of Foreign Entry Modes, The Internal and External Factors

Conflicts of Interest

The authors declare no conflicts of interest.

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