Export, contractual and investment as potential entry mode to foreign market for local (Indonesian) fashion brands. A case study of local brands displayed at the goods dept.
The purpose of this research is to analyze factors influencing the local fashion brands in selecting an entry mode, and which factor most influencing for the entry mode chosen. The data collection, involved the distribution to 45 local fashion (Indonesian)brands that displayed their products at The Goods Dept. Each data collected from the questionnaire are processed, analyzed in; SPSS ver. 21 and the add-on program AMOS ver. 21 for descriptive and statistical analysis of the study. A graphical explanation using Structural Equation Modeling is given inside this study to better explaining the regression value or the variables? relationship. The Entry Mode choices are divided into three: Export, Contractual and Investment. The result shows that the Dimensional Factors is not significant in influencing the Entry Mode variable. However, the other two; Firm Factors and Locational Factors prove to be significant. The regression value of Locational Factors is 0.98 to the Entry Mode and 0.40 for Firm Factors into the Entry Mode. Therefore, The Locational Factors is the most influencing for the Entry Mode selection process. There is also an indication, that the Locational Factors also contributed indirectly to the Export mode choice expressed byrn0.764 on regression value.
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