Cross-border e-commerce as a market entry mode : a case study in context of China
Kukkonen, Toni Markus (2018)
Pro gradu -tutkielma
Kukkonen, Toni Markus
2018
School of Business and Management, Kauppatieteet
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2018112849347
https://urn.fi/URN:NBN:fi-fe2018112849347
Tiivistelmä
This thesis aims to disclose the opportunities related to China’s cross-border e-commerce market by analyzing the recent development of the e-commerce sector which has enabled foreign companies’ new possibilities to enter the Chinese e-commerce market. The main research theme focuses on identifying the key influencing factors that facilitate foreign retail companies’ entry into China by using cross-border e-commerce model. This phenomenon is reflected with the literature related to transaction cost theory and other relevant internationalization perspectives.
This thesis is based on deductive research approach, and it was conducted as a qualitative descriptive case study. For providing empirical evidence of the research context, this research incorporates with a single-case which is representing the market entry process into China’s cross-border e-commerce market in the field of B2C consumer goods trade. The data collection was done by conducting key informant interviews and extensive documentary analysis.
The results suggest that cross-border e-commerce provides a streamlined pathway to China’s e-commerce market due to the shorter value chain. Although cross-border e-commerce mode has advantages in terms of cost-efficiency and reduced risks compared to traditional entry modes, there are still major challenges which should be taken into consideration from the foreign companies’ perspective. The outcome of the study supports to some extent other previous findings when analyzing the advantages and disadvantages of CBEC as a market entry mode. From a managerial perspective, this thesis can provide relevant insights from China’s cross-border e-commerce market and practices related to planning the market entry by using cross-border e-commerce model.
This thesis is based on deductive research approach, and it was conducted as a qualitative descriptive case study. For providing empirical evidence of the research context, this research incorporates with a single-case which is representing the market entry process into China’s cross-border e-commerce market in the field of B2C consumer goods trade. The data collection was done by conducting key informant interviews and extensive documentary analysis.
The results suggest that cross-border e-commerce provides a streamlined pathway to China’s e-commerce market due to the shorter value chain. Although cross-border e-commerce mode has advantages in terms of cost-efficiency and reduced risks compared to traditional entry modes, there are still major challenges which should be taken into consideration from the foreign companies’ perspective. The outcome of the study supports to some extent other previous findings when analyzing the advantages and disadvantages of CBEC as a market entry mode. From a managerial perspective, this thesis can provide relevant insights from China’s cross-border e-commerce market and practices related to planning the market entry by using cross-border e-commerce model.