The Impact of Cultural Variables on Entry Mode Decisions and Firm Performance: Social experiment of Senior Executives' Political and Socio-Economic Perceptions within South Korea

Firms must guarantee that their operations can adapt to changing demands while continuing to function at a high level of efficiency over the long term. Since the advent of globalisation, businesses have sought to extend their operations outside their home market. There are various reasons for this, including but not limited to the fact that internationalisation enabled enterprises to build brand awareness, access to larger customer base, and ultimately leading to host firm and nation's economic development. However, there appear to be several factors to consider when businesses desire to expand its administration abroad, which may at certain occasion jeopardise their management's smooth sail. Thus, this research study investigates and analyses in detail, how cultural variables, especially political and socio-economic scopes of view, may impact multinational firms' choice of entry modes and, ultimately, their visual growth of performance could alter. The investigation revealed an intriguing association between growth of MNE (Multi National Enterpirse) performance with political stability and political freedom. Especially, political freedom had a negative relationship with MNE performance growth, implying that the more politically free the MNE, the less likely it was to exhibit performance growth, whereas political stability showed a strong positive relationship. In conclusion part, critical thoughts regarding this study's limitations, as well as potential recommendations on how academics might enhance future entry mode study is reviewed