The Effect of Entry Barriers to Sequential Investment of Foreign Firms

Any market has its own entry barriers to foreign firms. In this reason, foreign firms, who are entering to a foreign market, must have internal competence which can contribute to overcome the entry barriers and have the capability for adjusting to external environment of foreign market. In this paper we analyzed the rate of entry barriers of external environment of Russian market when Korean firms entering into Russia. In this paper we segmented the external environment that affects to foreign firms as entry barriers such as competitive, socio-cultural, and political-legal environment and analyzed the rate of barriers induced from these environmental factors to foreign firms. The applied method is correlation and multiple regression analysis. The result of empirical analysis is as follows: The competitive environment of local (Russian) market dose not affect to Korean firms as an entry barrier. The local socio-cultural environment, however, significantly affect to foreign firms as entry barrier and negatively affect to sequential entry of Korean firms. The politicaHegal environment also significantly affect to sequential entry of Korean firms, and among sub-factors hierarchical behavior of governmental workers, in particular, raises unstability and uncertainty of external environment and negatively affects to Korean firms' investment in the future