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Spanish Company Foreign Market Entry

Author

Listed:
  • Francisco J. Más

    (Universidad de Alicante)

  • Felipe Ruiz Moreno

    (Universidad de Alicante)

Abstract

The aim of this paper is to analyse the determinants of diversification mode (acquisition versus greenfield) through foreign direct investment considering various theories, such as those of mergers and acquisitions, transaction costs, the learning organisation, the institutional context of the company and the cultural environment of the host country, and to analyse the determinants of entry mode combining diversification mode with ownership structure decision (greenfield wholly-owned subsidiaries, greenfield joint ventures, full acquisition and partial acquisition) and proposing various research hypotheses. The methodology used estimates various binomial and multinomial logit models, over a sample of 141 Spanish manufacturing companies between 1998 and 2000, finding that entry mode into a foreign country through direct investment is mainly explained by related diversification, international and local experience, advertising intensity, cultural distance, company size and ownership structure. El propósito de este trabajo consiste en analizar, por un lado, los determinantesdel modo de diversificación (adquisición versus desarrollo interno) de la inversióndirecta en el exterior considerando diversas aproximaciones teóricas, como las defusiones y adquisiciones, costes de transacción, del aprendizaje organizativo, así comodel contexto institucional de la empresa y del entorno cultural del país receptor. Por otrolado, se examinan los determinantes de la inversión directa exterior combinando elmodo de diversificación con la estructura de la propiedad empresarial (adquisición total,adquisición parcial, filial de plena propiedad y filial de propiedad compartida)proponiendo diversas hipótesis de investigación. La metodología aplicada estimadiversos modelos logit, binomial y multinomial, sobre 141 empresas españolasmanufactureras entre 1998 y 2000, detectando que el modo de entrada medianteinversión directa exterior viene explicada por la diversificación relacionada, laexperiencia internacional y local de la empresa, la intensidad publicitaria, la distanciacultural, así como por el tamaño y estructura de la propiedad de la empresa.

Suggested Citation

  • Francisco J. Más & Felipe Ruiz Moreno, 2003. "Spanish Company Foreign Market Entry," Working Papers. Serie EC 2003-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasec:2003-10
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    File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2003-10.pdf
    File Function: Fisrt version / Primera version, 2003
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    References listed on IDEAS

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    Cited by:

    1. Gallardo Ramiro, M V, 2010. "Fundamentos en la toma de decisiones de deslocalización empresarial e inversión internacional [The decision-making process in offshoring and international investment]," MPRA Paper 23259, University Library of Munich, Germany.
    2. Gallardo Ramiro, M V, 2010. "Deslocalización empresarial e inversión directa internacional [Offshoring and international investment]," MPRA Paper 23228, University Library of Munich, Germany.

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