Edinburgh Napier University

  There is substantial research to indicate that a correlation exists between the firm-specific characteristics of multi-national corporations (MNC’s) and the mode of entry selected for involvement in overseas markets. Equally there is evidence to suggest that the level of involvement is related to specific prevailing factors in the host markets. Given the importance of such involvement to international development this paper considers the extent to which the nature of entry to overseas markets is predicated upon the existence of specific variables related to both the firm and the host markets.
Regression analysis models were used to test the relationship between independent variables related to the firm, the host markets and the level of involvement. The paper concludes that there are strong positive relationships between competition, the degree of standardisation, the extent of market research, political risk and negative relationships with individualism and power distance in relation to the level of involvement.