Market entry strategies in post-financial crisis Southeast Asia: The case of Japanese manufacturing firms

Abstract

Existing research on entry mode determinants is firmly grounded in the transaction cost and resource-based literature, while institution-based location characteristics lack attention. The primary goal of this paper is to address the determinants of entry mode choice by Japanese manufacturing firms in Southeast Asia after the financial crisis by highlighting the institutional perspective in particular. Results show that institutional factors make significant contributions to the understanding of the entry mode selection of Japanese manufacturing firms and partly override the effect of firm-specific factors.