The relevance of relationship benefits when entering an emerging market : a study focussing on the East African Community
Year: 2013
Type: dissertation
Abstract: Business relationships have been studied as a driver for firm competitiveness\nthrough relationship marketing, but not as a strategic advantage when entering\nan economy. Prior research has identified several dimensions of market entry\ndrivers from host country, home-location, sector-related as well as firm-level\nperspectives. This research study takes a managerial perspective and argues\nthat relationships and their benefits are pivotal during market entry strategy\nformulation. It asserts that firms should alter their market entry strategies,\nspecifically for emerging economies, taking into consideration the net gains of a\nclient.\nThis study used a mixed method design involving exploratory research and\nexplanatory research. Semi-structured face-to-face interviews were conducted\nto make sense of the use of relationship benefits when entering the African\nmarket. An online self-administrative questionnaire was also used to gather\nfurther insights of attributes that individuals use when entering the East African\nCommunity (EAC) market.\nThe findings revealed that institutions do stipulate the rules of the game in an\nemerging market. Although the research results were not conclusive regarding\na wholly owned subsidiary being favoured for entry into an emerging market\nwith stronger institutions, it was conclusive in indicating that firms still favour\njoint ventures into the EAC. Relationship building is time consuming and many\nwho are given the opportunity to interact with clients still do not grasp the merits\nof building these relationships. This could be the reason why in general\nindividuals still rely on social benefits like friendships; interactions beyond\nbusiness relationships; sharing of information and knowledge with the client as\nopposed to psychological benefits.
Author: Malebo Matolong
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1612732354