To read the full version of this content please select one of the options below:

Going global in groups: a relevant market entry strategy?

Gilmar Masiero (School of Economics, Management and Accounting, University of Sao Paulo, Brazil)
Mario Henrique Ogasavara (ESPM, Sao Paulo, Brazil)
Marcelo Luiz Risso (School of Economics, Management and Accounting, University of Sao Paulo, Brazil)

Review of International Business and Strategy

ISSN: 2059-6014

Article publication date: 6 March 2017

2111

Abstract

Purpose

The purpose of this paper is to identify whether the new Chinese phenomenon of going global in groups represents a more advantageous market entry mode than the phenomena considered in previous studies.

Design/methodology/approach

In this empirical research paper, the authors draw upon the literature in academic journals and books regarding the Chinese special economic zones overseas to analyze and compare collective internationalization (i.e. going global in groups) with traditional market entry modes as per the ownership, location and internalization paradigm (OLI) and transaction cost approach (TCA).

Findings

The authors identified that financial and diplomatic support provided by the Chinese Government has reinforced internationalization in groups, thereby minimizing some structural risks in host countries. Pre-operational and operating costs have been lowered or shared among group members, and weighted average cost of capital has dropped due to the availability of specific funding lines with subsidized interest rates.

Research limitations/implications

Given the lack of available literature on the topic, the authors based their study of the collective internationalization of Chinese firms on very few cases, most of which represent market entry in African countries.

Practical implications

The study calls attention to a new, more efficient and less risky characteristic of international entry modes, which implies that companies can reap multiple benefits by entering markets in global groups.

Originality/value

As literature addressing market entry modes focuses mostly on individual enterprises, this paper contributes to the identification of advantages in collective internationalization.

Keywords

Citation

Masiero, G., Ogasavara, M.H. and Risso, M.L. (2017), "Going global in groups: a relevant market entry strategy?", Review of International Business and Strategy, Vol. 27 No. 1, pp. 93-111. https://doi.org/10.1108/RIBS-11-2016-0067

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

Related articles