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Title: Foreign market entry modes and performance : empirical evidence from Norway
Author: Nisar, Shaista
Awarding Body: Leeds Beckett University
Current Institution: Leeds Beckett University
Date of Award: 2012
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This study examined three key dimensions of foreign direct investment (FOI) in Norway: i) the influence of macroeconomic determinants on inward FDI, ii) motivation for the three main entry modes of FDI namely, international joint ventures (IJVs), cross border mergers and acquisitions (CBM&As) and foreign wholly owned subsidiaries (FWOSs) and iii) the performance of IJVs, CBM&As and FWOSs in Norway. The study has adopted a positivist approach in designing the research process and used quantitative research methodology for the analysis of the research questions. Primary data has been collected through survey method using a questionnaire in order to explore the motivations and performance of the three entry modes. The questionnaire was delivered and collected personally, through e-mail or postal mail to managers offoreign small and medium sized enterprises in Norway. The study found that whereas market development and power influence the choice of INs and CBM&As, the need to access resources and control resources appear to be the most important motives behind FWOS as an entry mode choice in Norway. Moreover, the regression results indicate that market development and power, technology development, location advantage and synergistic gains appear to have a significant bearing on the choice of different entry modes in Norway. As for performance, the study found that smaller CBM&As and FWOSs perform better than larger CBM&As and FWOSs. With regard to sector of operation, IJVs perform better if the parent firm's core industries are different while CBM&As and FWOSs perform better if the sector of operation of the companies are the same as their parent firms. Ownership type affects the performance of IJV s. It was found that private IJV s perform better than state owned UV s. Prior international experience was not a significant factor, hence bearing no effect on performance of any of the entry modes in Norway. In terms of the performance of IJVs, trust and congruity of goals between partners also had a positive and significant influence. This study used secondary data to examine the influence of macroeconomic determinants on inward FOI in Norway. By using co-integrating regressions with Fully Modified OLS (FMOLS) and the associated vector autoregressive and error correction model (V ARlVECM) on quarterly data, the study found that real GDP, sector GOP, exchange rate and trade openness have a positive and significant influence on FOI inflows in Norway. The results of the study also showed that money supply, inflation, unemployment and interest rate produced significantly negative influence on FDI inflows in Norway.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available