(only english abstract)

Abstract

This study proposes an interesting approach regarding the implementation of an entry mode strategy into the emerging markets from different points. Although previous studies have been undertaken to explore the influencing factors that affect the entry mode decision, there are a few research studies on the entry mode strategy and foreign shareholder ownership that consider the performance of companies in emerging market. In response to this current issue, the present study develops a new model based on foreign investors’ performance in emerging market for finding the most suitable entry mode strategy and preferable foreign shareholder ownership into emerging market. In order to achieve this goal, the moderator variables, such as cultural distance and corruption effect, were included to assess the correlation between the entry mode and the company’s performance.
As one of the developing countries, Indonesia was used as a model country in this study and the 3-year performance of the listed companies were investigated. The obtained results indicate that the cultural distance and corruption have a moderate effect to the company’s entry mode and performance Therefore, when these factors were available, they will have a great impact to the choice of entry mode that will better or aggravate the performance of companies.

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