Foreign Market Entry Strategies of Japanese MNCs

While much prior research has focused on Japanese multi‐national corporations’ (MNCs) marketing strategies, little is known about the factors that influence Japanese MNCs’ foreign market entry mode choice. In this study, a survey of Japanese MNCs is conducted in order to assess the factors that are the most influential in the foreign market entry decisions of Japanese MNCs. Using bargaining power theory, eight factors are identified in the study. The findings indicate that five of the eight factors (stake of the host country, need for local contribution, riskiness of the host country, resource commitment, and host government restrictions) are significant predictors of Japanese MNCs’ entry mode choice and that bargaining power theory is of value in predicting the entry mode choices of Japanese MNCs