Managing Alliance Between Competing Firms

As the trend toward economic globalization increases, the internationalization of retail companies as become an important topic. Research on the performance outcomes of foreign market entry strategies has been primarily considered from the perspective of global market. In this paper, an Excel based analyses were conducted on both primary and secondary data of 30 foreign retail companies in the Chinese retail market to test a contingency model that testify the influences of selected entry mode strategy when the foreign market entry mode is aligned strategically with domestic and foreign environmental factors. The results indicate that firms will have a higher rate of international revenue growth using equity-based (Joint Venture, Mergers and Acquisitions, Strategic Alliance, and Green-field investment) foreign market entry modes in growing Chinese retail industry. International revenue growth is higher for equity-based modes when foreign market risks are high. The findings should provide managers with contextual evidence for making successful foreign market entry decisions