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Joint Venture Efficiency through Skills Complementarity or by Reducing Transaction Costs?: A Case Study of an Apparel Company in an Emerging Market
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Author(s): José G. Vargas-Hernández (University of Guadalajara, Mexico), Antoniadis I. Ioannis (Western Macedonia University of Applied Sciences, Greece)and L.E. González-Armenta (University of Guadalajara, Mexico)
Copyright: 2017
Pages: 29
Source title:
Factors Affecting Firm Competitiveness and Performance in the Modern Business World
Source Author(s)/Editor(s): Aspasia Vlachvei (Western Macedonia University of Applied Sciences, Greece), Ourania Notta (Alexander Technological Educational Institute of Thessaloniki, Greece), Kostas Karantininis (Swedish University of Agricultural Sciences, Sweden)and Nicholas Tsounis (Western Macedonia University of Applied Sciences, Greece)
DOI: 10.4018/978-1-5225-0843-4.ch006
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Abstract
This paper aims to examine the main strategies multinational companies implement to enter new markets, and more specifically emerging ones, by reviewing the determinants of the strategic choice between establishing a joint venture formed by a multinational and a local partner, and the merger/acquisition of a local firm. By reviewing the relevant literature, we explore the strategies that Multinational Enterprises (MNEs) follow to enter new markets in emerging economies. Finally we put the literature in test by presenting a case study of a clothing retail company that has been a platform for multinationals wishing to enter the market of Mexico.
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