search query: @author Zeng, M. / total: 5
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| Author: | Chen, S-F.S. Zeng, M. |
| Title: | Japanese investors' choice of acquisitions vs. startups in the US: the role of reputation barriers and advertising outlays |
| Journal: | International Journal of Research in Marketing
2004 : JUN, VOL. 21:2, p. 123-136 |
| Index terms: | Multinational companies Mergers Markets Advertising Reputation Asia USA |
| Language: | eng |
| Abstract: | Multinational enterprises (MNEs) can either start up new ventures or acquire existing firms to enter foreign markets. Although many reputable brands have changed hands in international acquisitions (hereafter as: acqs.), no previous studies have systematically verified the proposition that MNEs choose acqs. over startups to overcome reputation barriers abroad. This study hypothesizes that the choice of acqs. vs. startups also depends on investors' prior advertising outlays as well as the reputation barriers they face in the foreign industry entered. The study compiles a vector of variables distinguishing btw. firm-specific advertising investments and industry-specific reputation barriers to analyze Japanese manufacturers' entry strategies into the U.S. The results show that Japanese investors facing higher reputation barriers in the target industry are more inclined to acquire existing firms, whereas those spending more on advertising prior to an entry are more likely to start up new ventures. |
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