Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


An Empirical Study of Thailands Foreign Market Entry Mode Choice

Author(s): Sujinda Chemsripong

This study aims to answer two questions: i) what are the factors that influence the market entrance model? ii) The impact between thosefactorsand the market entrancemodel. The objectives of this study are i) analyze the factors that determine the selection of the overseas investment model by listed companies in Thailand ii) consider how the investment style is related to the decision-making process. The eclectic theory of Dunning consisted of Ownership, Location, and Internalization advantageis applied to investigate the investment factors. The multinomial logistic regression model is applied to test the hypothesis and deployedcategorical regression method from 125 companies in Thailand Stock Exchangeinvestingin CLMV. The results showed that the size of the business did not affect the form of investment. Experience in conducting business in the country, organizational characteristics, investment risk, market potential, and product development capabilities have a significant effect on foreign investment patterns. The most effective factor is the experience of conducting business in the country, investment risk, market potential, the organization and its ability to develop products, respectively, is important factors in determining the selection model into the international market.

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