Firms Expansion in Global Markets Essay -- Business, Internationaliza

Literature Review and Hypothesis DevelopmentStudies cerebrate to trustworthys expansion in global markets have received increasing attention at both empirical and conceptual levels. Numerous conceptual frame full treatment and studies have been put frontward outlining firms choice 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 lot about the performance inference of the globally diversification strategies. However there is less produce 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 Gre ening (1998) argued that one of the most important paths for the firms growth is geographical 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 markets. Furthermore in different geographic areas of the world, markets prevails different conditions. Firms can get high rate of impart on their assets and can take advantage on market imperfection by leveraging their assets in dissimilar markets. SMEs will have to expand crossways the border markets to get better opportunities and better rate of returns to their assets.Milinaric (2010) has focuse... ...ee hypotheses were developed through extensive literature review.H1 Location specific divisors are positively related with firms foreign market performance.H2 Firm specific factors are positively 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=Much Worse to 5=Much better.To determine the internal reliability of the variables, cronbachs of import was run.