A business success evaluation of market entry mode types in Myanmar construction

Abstract

The optimal entry mode decision and knowing the critical success factors are important for successful international market expansion. However, there are not many studies for developing Asian countries, such as Myanmar. Investors need to know what factors influence entry mode decision and business success. Therefore, the objectives of this study are 1) to identify the factors that influence entry modes decision, 2) to identify the critical success factors of entry modes for business, 3) to identify the significant factors that affect business success. The questionnaire survey using a five-point Likert scale was developed and distributed in Yangon, the commercial city of Myanmar. This study conducted both quantitative and qualitative methods to acquire more cohesive data result. Analysis of variance (ANOVA) was used to examine the different perceptions of factors among entry mode types. The mean ranking method was also used to observe the perceived priority of factors from different entry modes viewpoints. Then, Pearson’s correlation and multiple linear regression were conducted to find the correlation and the most significant factors that affect business success. The research found that the factors influencing entry mode decisions can be distinguished as entry factors and entry mode factors. Entry factors are used before making an entrance and during the time of considering whether to make an entrance. The entry mode factors are specifically important to opt for a particular entry mode. However, critical success factors do not perceive different opinions based on entry modes. Nevertheless, the important levels assist firms to keep focusing on the right priority. The factors that affect business success are top management related, organizational related and business management related factors. The result will help investors to improve their knowledge of the host country for strategic entry planning and enhance the management strategy to have a successful implementation.