International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment

International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment

This project paper will be focusing only how State-Owned Enterprise (SOE’s) companies decide to go abroad and select their mode of foreign market entry. For better understanding of this project paper topic, several questionnaires will be formulated on the concerns and focusing on the motives for int...

Full description

Saved in:
Bibliographic Details
Main Author: Novitasari, Dieka
Format: Thesis
Language:eng
eng
Published: 2011
Subjects:
HF5001-6182 Business
Online Access:https://etd.uum.edu.my/2896/1/Dieka_Novitasari.pdf
https://etd.uum.edu.my/2896/2/1.Dieka_Novitasari.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.2896
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Chauhan, Ajay
topic HF5001-6182 Business
spellingShingle HF5001-6182 Business
Novitasari, Dieka
International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment
description This project paper will be focusing only how State-Owned Enterprise (SOE’s) companies decide to go abroad and select their mode of foreign market entry. For better understanding of this project paper topic, several questionnaires will be formulated on the concerns and focusing on the motives for internationalization, approaches to foreign market entry modes and select the best entry mode strategies to enter the international market. In order to develop a holistic overview of internationalization process and business strategies in Indonesia perspective, an Indonesian holding company – PT Pupuk Sriwijaya has been selected and used to be the foundation of this study. The purpose of this study is to examine motives and reason that impacts SOEs approach to select the mode of entry for their company, through determine their own capabilities, readiness factor, resource availability and other factor that is come from inside company to do the business expansion. All data collection has been gathered through Delphi technique, which is unlikely methodology that is used by general master’s student to collect their data. In Delphi technique, all the data has to be collected from experts who have been working and experienced in the particular company. Some experts from the specific company have been chosen as the respondents to answer some questionnaires. Proactive factors that influence SOE’s decision to choose mode of entry includes managerial urge, unique product, marketing advantages and economies of scale. Reactive factors that positively relates to this paper work only involve risk diversifications and government regulations for doing business outside from their country. Pusri’s is more comfortable to use export as a first mode of entry and they expect to reached another level for entry mode namely Foreign Direct Investment. Four internal factors that positively relates to this paper work are company size, government regulations, international experience and product.
format Thesis
qualification_name masters
qualification_level Master's degree
author Novitasari, Dieka
author_facet Novitasari, Dieka
author_sort Novitasari, Dieka
title International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment
title_short International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment
title_full International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment
title_fullStr International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment
title_full_unstemmed International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment
title_sort international expansion strategies of pt pupuk sriwijaya: entry modes choice and motives for investment
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2011
url https://etd.uum.edu.my/2896/1/Dieka_Novitasari.pdf
https://etd.uum.edu.my/2896/2/1.Dieka_Novitasari.pdf
_version_ 1747827455506251776
spelling my-uum-etd.28962016-04-19T04:16:33Z International Expansion Strategies of PT Pupuk Sriwijaya: Entry Modes Choice and Motives for Investment 2011 Novitasari, Dieka Chauhan, Ajay Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5001-6182 Business This project paper will be focusing only how State-Owned Enterprise (SOE’s) companies decide to go abroad and select their mode of foreign market entry. For better understanding of this project paper topic, several questionnaires will be formulated on the concerns and focusing on the motives for internationalization, approaches to foreign market entry modes and select the best entry mode strategies to enter the international market. In order to develop a holistic overview of internationalization process and business strategies in Indonesia perspective, an Indonesian holding company – PT Pupuk Sriwijaya has been selected and used to be the foundation of this study. The purpose of this study is to examine motives and reason that impacts SOEs approach to select the mode of entry for their company, through determine their own capabilities, readiness factor, resource availability and other factor that is come from inside company to do the business expansion. All data collection has been gathered through Delphi technique, which is unlikely methodology that is used by general master’s student to collect their data. In Delphi technique, all the data has to be collected from experts who have been working and experienced in the particular company. Some experts from the specific company have been chosen as the respondents to answer some questionnaires. Proactive factors that influence SOE’s decision to choose mode of entry includes managerial urge, unique product, marketing advantages and economies of scale. Reactive factors that positively relates to this paper work only involve risk diversifications and government regulations for doing business outside from their country. Pusri’s is more comfortable to use export as a first mode of entry and they expect to reached another level for entry mode namely Foreign Direct Investment. Four internal factors that positively relates to this paper work are company size, government regulations, international experience and product. 2011 Thesis https://etd.uum.edu.my/2896/ https://etd.uum.edu.my/2896/1/Dieka_Novitasari.pdf application/pdf eng validuser https://etd.uum.edu.my/2896/2/1.Dieka_Novitasari.pdf application/pdf eng public masters masters Universiti Utara Malaysia Aaker, David D. (2001), Developing Business Strategies. Sixth Ed, John Wiley & Sons Inc. Adam J. Koch. (2001), Selecting overseas markets and entry modes: two decision processes or one?, Marketing Intelligence & Planning, 19/1, pp. 65-75. Adler, M. and Ziglio, E. (1996), Gazing into the oracle: The Delphi Method and its application to social policy and public health. London: Jessica Kingsley Publishers. Ahmad, S.Z., and Kitchen, P. J. (2008), Transnational corporations from Asian developing countries: the internationalization characteristics and business strategies of Sime Darby Berhad, International Journal of Business Science and Applied Management, Vol.3(2),pp.22-36. Ahmad, S.Z., and Kitchen, P. J. (2008). International expansion strategies of Malaysian construction firms: entry modes choice and motives for investment, Problems and Perspectives in Management, Vol. 6, Issue 3. Anderson E., and Gatignon H. (1986). Modes of foreign entry: a transaction cost analysis and propositions, Journal of International Business Studies, Vol. 17 (3), pp 1-26 Arora, A., and Fosfuri, A. (2000). Wholly Owned Subsidiary Versus Technology Licensing in the World-wide Chemical Industry, Journal of International Business Studies, Vol. 31, no. 4, pp. 535-554. Baskoro, F.M., & Ekawati, Arti. (2010), Export of excess subsidized fertilizer to go ahead. Jakarta Globe. Retrieved on May 10th 2011. From: http://www.thejakartaglobe.com/bisindonesia/export-of-excess-subsidized-fertilizer-likely-to-go-ahead/388890 Bradly F., and Gannon, M. (2000). Does the firm’s technology and marketing profile affect foreign market entry? Journal of International Market, Vol. 8 (4), pp. 12-36. Blomstermo A., Sharma D. D., and Sallis J. (2006), Choice of foreign market entry mode in service firms, International Marketing Review, Vol. 23 (2), pp. 211-229 Broomfield, D. and Humphries, G. M. (2001), Using the Delphi technique to identify the cancer education requirements of general practitioners, Medical Education, Vol. 35, pp. 928-937. Carney, O., McIntosh, J. and Worth, A. (1996), The use of the nominal group technique research with community nurses, Journal of Advanced Nursing, Vol. 23, No. 5, pp. 1024-1029 Chang S. J., and Rosenzweig P. M. (2001), The choice of entry mode in sequential foreign direct investment, Strategic Management Journal, Vol. 22 (1), pp. 747-776. Charles R. Taylor, Shouming Zou and Gregory E. Osland. (2000), Foreign market strategies of Japanese MNC’s , International Marketing Review, Vol. 17, no 2, pp. 143-146. Crisp, J., Pelletier, D., Duffield, C., Adams, A. and Nagy, S. (1997). The Delphi method, Nursing Research, Vol. 46 (2), pp. 116-118 Czinkota, M. and Ronkainen. (1997), International business and trade in the next decade: Report from a Delphi study, Journal of International Business Studies, 28 (4), 827-844. Decker, Reinhold., and Zhao, Xuemin. (2004), SME’s choice of foreign market entry mode: a normative approach, International Journal of Business and Economics, Vol. 3, No. 3, pp. 181-200. Delbeq, A., Van de Ven, A., & Gustafson, D. H. (1975), Group techniques for program planning: A guide to nominal group and Delphi processes, Glenview, USA: Scott, Foresman and Company Deresky, Helen. (2011). International Management Managing Across Borders and Cultures, Pearson Education Inc. .Driscoll A.M., and Paliwoda S. J. (1997). Dimensionalizing international market entry mode choice, Journal of Marketing Management, Vol. 13, pp. 57-87. Erramili, M, K., and Rao, C, P., (1993), “Service firms’ international entry mode choice: a modified transaction-cost analysis approach”, Journal of Marketing, Vol. 57, July, pp. 19-38. Fitzroy, Peter and Hulbert, James (2005). Strategic Management. West Sussex: John Wiley & Sons, Inc. Frynas, J. George and Mellahi, Kamel. (2011), Global Strategic Management. Second Ed, Oxford University Press. Gregory E., Charles R, Taylor and Shaoming Zou (2001), Selecting international modes of entry and expansion, Marketing Intelligence & Planning, 19/3, pp. 153-161. Gupta, U.G, and Clarke, R.E. (1996), Theory and Applications of the Delphi Technique: A bibliography (1975-1994), Technological Forecasting and Social Change, Vol. 53, pp. 185-211. Hair, J., Money, A.H., Samouel, P. and Page, M. (2007), Research Methods for Business. United State: John Wiley & Sons, Ltd. Gregory E., Charles R, Taylor and Shaoming Zou (2001), Selecting international modes of entry and expansion, Marketing Intelligence & Planning, 19/3, pp. 153-161. Gupta, U.G, and Clarke, R.E. (1996), Theory and Applications of the Delphi Technique: A bibliography (1975-1994), Technological Forecasting and Social Change, Vol. 53, pp. 185-211. Hair, J., Money, A.H., Samouel, P. and Page, M. (2007), Research Methods for Business. United State: John Wiley & Sons, Ltd. Gregory E., Charles R, Taylor and Shaoming Zou (2001), Selecting international modes of entry and expansion, Marketing Intelligence & Planning, 19/3, pp. 153-161. Gupta, U.G, and Clarke, R.E. (1996), Theory and Applications of the Delphi Technique: A bibliography (1975-1994), Technological Forecasting and Social Change, Vol. 53, pp. 185-211. Hair, J., Money, A.H., Samouel, P. and Page, M. (2007), Research Methods for Business. United State: John Wiley & Sons, Ltd. Gregory E., Charles R, Taylor and Shaoming Zou (2001), Selecting international modes of entry and expansion, Marketing Intelligence & Planning, 19/3, pp. 153-161. Gupta, U.G, and Clarke, R.E. (1996), Theory and Applications of the Delphi Technique: A bibliography (1975-1994), Technological Forecasting and Social Change, Vol. 53, pp. 185-211. Hair, J., Money, A.H., Samouel, P. and Page, M. (2007), Research Methods for Business. United State: John Wiley & Sons, Ltd. Hennart, J.F., & Park, Y.R. (1993). Greenfield versus acquisition: The strategy of Japanese investors in the United States. Management Science, 39: 1054-1070. Hill, Charles W. L. (2009), International Business: competing in the global marketplace. Seventh Ed, New York: McGraw-Hill International Edition. Harzing, Anne-Wil. (2001). Acquistions versus Greenfield investments: international strategy and management of entry modes, Strategic Management Journal. Hasson, F., Keeney, S. and McKenna, H. (2000), Research guidelines for the Delphi survey technique, Journal of Advanced Nursing, Vol. 32 (4), pp. 1008-1015 Hoe, Oon Kam. (2010). Internationalization process and business strategies: a case study of Malaysia’s growth multinational companya – Pensonic holding berhad, Master Thesis, Universiti Utara Malaysia. Hofstede, G. (1991). Cultures and organizations: Software of the mind. Berkshire, England: McGraw-Hill. Johnson, Gerry and Scholes, Kevan (1993). Exploring Corporate Strategy. London: Prentice Hall. Kogut B. M., and Singh H. (1988), The effect of national culture on the choice of entry mode, Journal of International Business Studies, Vol. 19 (3), pp. 411-432 Kumar V., and Subramaniam V. (1997). A contingency framework for the mode of entry decision, Journal of World Business, Vol. 32 (1), pp. 53-72. Linston, H. and Turloff, M. (1975), The Delphi Method: techniques and applications, London, UK: Addison-Wesley Loo, R. (1997), The future of management training in Canadian healthcare organizations, Journal of Management Development, Vol. 16, No. 9, pp. 680-689 Lu, J. W., and Beamish P. W. (2001). The internationalization and performance of SMEs, Strategic Management Journal, Vol. 22 (6-7), pp. 565-585. Madhok A. (1997). Cost, value and foreign entry mode: transaction and the firm, Strategic Management Journal, Vol. 18 (1), pp 39-61. Makino, S., Neupert (2000). National Culture, Transaction Costs, and the Choice Between Joint Venture and Wholly Owned Subsidiary, Journal of International Business Studies, Vol. 31, no. 4, pp. 705-714. Mustafa, A. (2008), Case Study Method: Theory and Practice, Research and Management Approaches, India: Atlantic Publishers & Distributors (P) Ltd. Noraini, Bibi. (2010). Internationalization of SMEs:: The motives an internal factors in selecting markets entry modes, Master Thesis, Universiti Utara Malaysia Prahalad, C.K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3): 79-91. Pearce II, J. A. & Robinson, Jr., R. B. (1985). Strategic management, Strategy Formulation and Implementation. Second Ed. Richard D. Irwin, Inc. Homewood, Illinois. Pezeskpur, C. (1979), Systematic approach to finding export opportunities, Harvard Business Review, pp. 182-196. Rogers, M.R, and Lopez, E.C. (2002). Identifying critical cross-cultural school psychology competencies. Journal of school psychology, Vol. 40 (2), pp. 115-141 Root, F. R., (1998), Entry Strategies for International Markets, Jossey-Bass, San Fransisco Rowe, G. and Wright, G. (1999), The Delphi technique as a forecasting tool: Issues and analysis, International Journal of Forecasting, 15 (4), 353-375. Sara Gustavsson and Erica Lundgren (2006), Internationalization of SME’s: the challenge of selecting foreign market entry modes, 2006:024 – ISSN: 1402 – 1552 – ISRN: LTU – DUPP. Shalof, Mahmod Ramadan Ali (2010). The Relationship Between Strategic Management and Organizational Effectiveness of Soft Drinks Manufacturers in Libya. Masters Thesis, Universiti Utara Malaysia. Skulmoski, G. and Hartman, F. (2002), The Delphi method: Researching what does not exist (yet). Proceedings of the International Research Network on Organization by Projects, IRNOP v Conference. Renesse; The Netherlands Snyder-Halpern, R. (2002). Indicators of organizational readiness for clinical information technology/systems innovations: a Delphi Study. International Journal of Medical Informatics, 63, pp. 179-204. Tallman, S., Fladmore-Lindquist, K. (2002), Internationalization, globalization, and capability-based strategy, California Management Review, Vol. 45, No.1, pp. 115-135. Thompson, Arthur A., and Strickland III, A.J and Gamble, John E. (2010). Crafting and Executing Strategy. New York: McGraw-Hill. Tse D, K., Pan Y. and Au K. Y. (1997). How MNCs choose entry modes and form alliances: the China experience, Journal of International Business Studies, Vol. 28 (4), pp. 779-805. Van Zolingen, S.J. and Klaassen, C.A. (2003), Selection processes in a Delphi study about key qualifications in Senior Secondary Vocational Education, Technological Forecasting and Social Change, Vol. 70, pp. 317-340 Wang, C.C., Wang, Y., Zhang, K., Fang, J., Liu, W., Luo, S., Wang, S. and Lu, V.C. (2003). Reproductive health indicators for China’s rural areas, Social Science and Medicine, 57 (2): pp. 217-225 Woundenberg, F. (1991). An evaluation of Delphi, Technological Forecasting and Social Change, Vol. 40, pp. 131-150. Youngsun Park and Brenda Sternquist, (2008). The global retailer’s strategic proposition and choice of entry mode, International Journal of Retail & Distribution Management, Vol. 36, No. 4, pp. 281-299.

Similar Items