Perception of MNE Entry into Developed Markets: The Case of Amazon's Entry into Australia

Running head: International Business Management
International Business Management
Name of the Student: Amit Verma
Assessment: Assignment 1
Name of the University: Auckland University of Technology
Student ID: 17976607

1
International Business Management
Research Question
How is Multinational Enterprise (MNE) entry into developed markets perceived within the
host country: The case of Amazon's entry into Australia.
Introduction
International business transactions are associated with varied societal value systems
over different national borders. After a business settles for the decision of foreign market
entry, the element of the culture of the host country comes into play. Besides this, other
aspects such as technology are also considered and the influence that the MNE has on the
market performance within the host country. The general outlook of the host country will
always influence the decision that the organization makes regarding its mode of entry. The
presented topic is worth researching since it provides an insight about how MNEs can utilised
their local assets as resources to obtain a competitive advantage in the new international
market. Having in mind that the firm is seeking to expand into a new international market for
the first time, settling for the most appropriate mode of entry is regarded as the most
important factor of consideration in that it is directly linked to the survival and
competitiveness of the business within the new destination. The presented research topic is
important to policy makers since it outlines the most favourable forms of market entry modes
based on the international location.
Summary Table
Reference Purpose of the
Study
Research
Approach
Key Findings
Blomkvist, K., Kappen, P., &
Zander, I. (2010). Quo vadis? The
entry into new technologies in
advanced foreign subsidiaries of the
multinational enterprise. Journal of
International Business
Studies, 41(9), 1525-1549.
doi:10.1057/jibs.2010.22
The purpose of
the study is to
investigate the
longitudinal
patterns utilised
by advanced
foreign
subsidiaries
when entering
into
Repeated
events
analysis.
The study reveals
that more firms are
continually entering
into new
technological
international
markets resulting in
the evolution of
technological
capabilities of the
Amit Verma 17976607

2
International Business Management
technological
market which
is new to the
multinational
organisation.
host countries.
Brouthers, K. (2012). A
retrospective on: Institutional,
cultural and transaction cost
influences on entry mode choice
and performance. Journal of
International Business
Studies, 44(1), 14-22.
doi:10.1057/jibs.2012.23
The major
purpose of the
presented study
is to explore
the entry mode
performance
and the benefits
associated with
the
performance of
various
theoretical
models of
international
entry.
Secondary
research
methodology.
The establishment
of prescriptive tools
for managers is
important since it
enhanced the entry
mode decisions of
firms, resulting in a
better performance
in the new
destination.
Buckley, P., & Casson, M.
(2010). The Multinational
Enterprise Revisited (1st ed.).
London: Palgrave Macmillan.
The authors of
the presented
book seek to
outline the
major aspects
related with the
future of
MNEs.
Secondary
research
methodology
exploring the
works of
authors
published
within the
past 30 years.
The study reveals
that a firm which
seeks to expand
internationally has
an increased
potential of success
in comparison to
those which opt to
venture in local
markets.
Amit Verma 17976607

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International Business Management
Demirbag, M., McGuinness, M., &
Altay, H. (2010). Perceptions of
Institutional Environment and
Entry Mode. Management
International Review, 50(2), 207-
240. doi:10.1007/s11575-010-
0028-1
The main aim
of the article is
to outline the
data obtained
from Turkish
organisations
which have
expanded into
Central Asian
Republics. The
researchers
achieve the
presented
functionality by
investigating
the perceptions
of the
executives
when it comes
to entry mode
decisions.
Empirical
Research
method.
The findings of the
study show that a
greater ethical-
societal uncertainty
drives most
organisations to opt
for the
establishment of
joint ventures before
entering the
international
markets over wholly
owned subsidiary.
Hennart, J. (2009). Down with
MNE-centric theories! Market
entry and expansion as the bundling
of MNE and local assets. Journal of
International Business
Studies, 40(9), 1432-1454.
doi:10.1057/jibs.2009.42
The presented
analysis
explores the
transactional
features related
with local
assets and the
choice of
international
market entry as
Observation
method.
The study reveals
that the market
where the local
assets of the MNE is
traded is important
in establishing its
relative efficiency
and their choice of
market entry.
Amit Verma 17976607