Firms Expansion in Global Markets Essay -- Business, Internationaliza

Literature Review and Hypothesis DevelopmentStudies related to firms expansion in global foodstuffs have received increase attention at both empirical and conceptual levels. Numerous conceptual frame works and studies have been put frontward outlining firms select on the way to establish internationalization procedure Whitelock (2002) and Andersen (1997). In prior studies related to the strategic management and international business have investigated a push-down storage about the performance inference of the globally diversification strategies. However there is less work done on the performance inference of the globalization strategies related to the entrepreneurship and firm related literature. It has been empirically tested and argued by several researchers that better firms performance is related with the better level of global diversification for example Daniels and Bracker (1989), Tallman and Li (1996), Grant (1987) and Kim, Hwang and Burgers (1993).Barringer and Greening ( 1998) argued that one of the most of the essence(p) paths for the firms growth is geographic expansion. This type of growth strategy is relatively much important for SMEs whose scope has been confined geographically. According to Zahra, Ireland, and Hitt, (2000) the larger volume of growth and production of firms can be achieved by expanding customer bases by going into new securities industrys. furthermore in different geographic aras of the world, markets prevails different conditions. Firms can get high rate of return on their assets and can take advantage on market imperfection by leveraging their assets in dissimilar markets. SMEs will have to expand across the border markets to get better opportunities and better rate of returns to their assets.Milinaric (2010) has focuse... ...ee hypotheses were unquestionable through extensive literature review.H1 Location specific factors are positively related with firms foreign market performance.H2 Firm specific factors are posit ively related with firms foreign market performance.H3 Owner specific factors are positively related with firms foreign market performance.Theoretical FrameworkFLO-FE modelMeasurementBefore conducting regression analyses, data reduction was performed for factor analysis. The Firm specific factors, Location specific factors and Owner specific factors were measured on 5 point Liker scale. Ranking started from 1= strongly disagree to 5= strongly agree. The responses to the Foreign entry performance questions ranged from 1= a good deal Worse to 5=Much better.To determine the internal reliability of the variables, cronbachs alpha was run.