Contingent Theory And International Market Entry Mode Choice

At the background of economic globalization, the transnational corporations in many countries are adjusting their developing strategy. Every government has to estimate the position of itself in the new situation of global economy. Many firms of our country have walked out, carried out the international operation and obtained some achievements. However, after all the international operation of our country just begins and due to losing the experience and understanding of international market environment firms have found many problems in the process of internationalization. If firms decide to walk out, they must implement the operation strategy of internationalization, try their best to decrease the risk of international operation and gain a good operation income. When the firms carried out their international operation, they must make correct decision of many problems. In these problems, the most important one is how to choose the international market entry mode.Therefore, this paper makes further research on the choice of international market entry mode. This paper use the contingency theory into the choice of international market entry mode and analyze the influence of contingency factors towards the entry mode.At last, we construct the contigency analyzing model.Firstly, our paper reviews the theories about international market entry mode. These theories include resource-based theory, internalization theory, transaction cost theory and eclectic theory. The research angles of these theories are different. The influence factors in these theories are also different. Based on the reviews of these theories, we research the relations between extended transaction cost theory and international market entry mode. We also research the relations between firm's dynamic capability theory and international market entry mode. We also use contingency theory into the choice of international market entry mode and analyze the influence of contingency factors towards the entry mode.We analyze these factors from four aspects:transaction cost,enterprise capacity,the enviroment of host country and strategy factors.At last, we create the contingency model of international market entry mode. Based on the theory researches, we put forward the policies and suggestions on the international market entry mode.This paper researches the international market entry mode from theoretical perspective. At last, we come to the conclusions: The choice of international market entry mode is a contingent choice. We should choose modes according to the different conditions. When the firms make out decisions, they should analyze their capacities, the environments, developing strategies and other transaction factors. After analyzing these factors, the firms can make decisions according to the theories and the models.