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Entry modes of European firms in Vietnam

Emerging Markets Journal

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Field Value
 
Title Entry modes of European firms in Vietnam
 
Creator Simonet, Daniel
 
Subject —
 
Description Purpose: The purpose of the paper is to explore the entry modes of EU firms setting up operations in Vietnam. Design/methodology/approach: we use a case study approach on Haymarket, Cadbury, Creative Education, Fairchild, Aventis and Artemisinin and Farming International using interviews from managerial professionals in Vietnam. Findings: Despite the fact that Vietnam has been opening up for more than 20 years, licensing is the preferred entry mode because of the risks involved in venturing with local firms; that preference signals a low level commitment and a high perception of risk and state interference. In line with Vietnam transition to state - rather than private market - capitalism, a foreign company opting for a joint-venture will do so with a state-owned rather than privately-owned company. The choice of a subsidiary can be explained by the lack of trust in partners and institutions, not by improvement in the socio-political environment.Limitations: In determining the entry mode strategy, the paper focuses on the Uppsala school’s “psychic distance” (e.g. cultural distance, lack of trust) rather than on firm-specific advantages (Rugman, 1980; 2006).Key-words: international entry mode; emerging markets; subsidiary; joint-venture; India; Vietnam
 
Publisher University Library System, University of Pittsburgh
 
Contributor international entry mode
emerging markets
subsidiary
joint-venture
India
Vietnam
 
Date 2012-09-11
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://emaj.pitt.edu/ojs/index.php/emaj/article/view/27
10.5195/emaj.2012.27
 
Source EMAJ: Emerging Markets Journal; Vol 2, No 2 (2012); 9-16
2158-8708
 
Language eng
 
Relation http://emaj.pitt.edu/ojs/index.php/emaj/article/view/27/121