Foreign Market Uncertainty, Entry Timing and Firm Performance: The Moderating Effects of Firm Resources and Entry Mode

This paper empirically examines the foreign market entry timing of Korean manufacturing MNEs. First, we explore whether foreign market uncertainty influences entry timing choices and whether the effect varies with firm resources. Second, we test the relationship between entry timing and firm performance. Our findings suggest that firms delay the entries into uncertain foreign markets but that this attitude is weakened for internally uncertain foreign markets if they are endowed with technological resources. In addition, the findings indicate that the effect of entry timing on firm performance is affected by entry mode and the results suggest that earlier entrants in the lower control mode and later entrants in the higher control mode can outperform their competitors. We conclude with a discussion of the findings and suggestions for future research.