Volume 2, Issue 2 (2012)                   ORMR 2012, 2(2): 67-87 | Back to browse issues page

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Categorising of influenced international risks on the entry mode choice to foreign markets (Case study: Iran automotive industry). ORMR. 2012; 2 (2) :67-87
URL: http://ormr.modares.ac.ir/article-28-3497-en.html
Abstract:   (3732 Views)
The main goal of this study is the classification of international risks facing Iranian automotive companies activated in international markets. Also, the examination of the relationship among these risks and the selection of entry mode to various countries by these companies is another goal of this research. The research population of this study is the factories in automotive industry which has entered foreign markets in recent 5 years (1385-1390). Analysis even data surface is elected "Company-Project" and exploratory factor analysis test is used for the classification of risks. In this manner, international risks are classified in the four categories of risks; specific-host country risk, specific-industry risk, specific-company risk, and specific-home country risk. Also, the relationship between international risks and the selection of entry mode is examined by Spearman correlation test and its results are the confirmation of relation specific-host country risk and specific-industry risk with the selection of the entry mode. In other words, according to findings, with increase in the mentioned risks, the export entry mode has been considered and with decreasing of the risks, the entry mode has inclined to the J.V. and foreign direct investment. On the other hand, it has been identified that the relationship between the entry mode, specific-industry risk, and specific-home country risk is not meaningful.  
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Received: 2012/11/17 | Accepted: 2012/08/22 | Published: 2013/05/1

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