Article 2 Global Sourcing Strategy and Performance of Knowledge-Intensive Business Services: A Two-Stage Strategic Fit Model………………………………………………………….
In my opinion, the research question is so important because it helps one…
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Besides, it provides ample examples on emphasis given to the strategy of multinationals in enhancing the profits of the company.
In the introductory section, the article provides a bird’s eye view on multinational companies, its decision making process, factors that influence the decision making process and foreign markets. In the first part, the article deals with the various factors that influence decision making process of multinational companies which seek entry into foreign markets. In addition, the article tests the validity of the framework used in decision making by undertaking firm level research by an empirical method that focuses on the micro as well as the macro factors.
Summing up, the learning from the article is about how multinationals often make choices that are driven by top-down approaches rather than bottom-up approaches. The article is definitely useful for anyone seeking to understand the rationale behind why multinationals choose to enter specific markets and why they ignore some other markets. In conclusion, the article is definitely worth reading and adds to the literature that is available on the entry modes of multinationals and particularly to those in the third world countries.
The article makes very relevant points about the nuts and bolts of decision making when it comes to entry into foreign markets. The article is an important contribution to the existing literature on how multinationals base their decisions on which markets to enter and the factors that go into this decision making process. For instance, the entry strategy of multinationals into a specific market might be dictated by considerations of geography and to counter completion from its international rivals.
This is the strategy that the cola majors, Coke and Pepsi use to enter specific markets and the entry mode is often dictated by factors that include the
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