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Entry mode of emerging MNCs and the companies' level of technological intensity

Author

Listed:
  • Silvia Novaes Zilber
  • Eva Stal
  • Mauricio Massao Oura
  • Evandro Luiz Lopes

Abstract

The objective of this study was to identify the first entry mode choice of MNCs from an emerging country into a foreign country, as well as the destination countries chosen, based on the companies' level of technological intensity, in an effort to better understand the role of innovation in the process of emerging countries companies' internationalisation. The emerging country selected was Brazil, because there are many studies examining the entry mode of firms from emerging countries such as China and India in other countries, while there are few quantitative studies on this subject for Brazilian companies. A database of 189 multinational Brazilian firms was created and a quantitative analysis was employed with descriptive and univariate statistics through chi-square (χ2) tests in order to test the hypotheses, identifying possible differences between companies with lower or higher technological intensity with regard to their first entry in foreign countries. The results show that the main entry mode used by these companies, from all technological intensities, was greenfield in both emerging countries (49.74%) and developed countries (41.79%). Segments with distinct technological intensities do not appear to have different behaviours with regard to the choice of entry mode.

Suggested Citation

  • Silvia Novaes Zilber & Eva Stal & Mauricio Massao Oura & Evandro Luiz Lopes, 2016. "Entry mode of emerging MNCs and the companies' level of technological intensity," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 16(4), pages 448-470.
    • Handle: RePEc:ids:ijbglo:v:16:y:2016:i:4:p:448-470
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