Abstract:

Although there are abundant researches on MNEs’ entry mode, few focus on post-entry dynamics of ownerships after initial entries and on international luxury brand companies, mainly SMEs, with limited sources but high brand values and strong exporting needs to international markets. Based on transaction cost theory, this study investigated post-entry changes of SMEs’ ownership in an emerging consumer market and identified impact factors as market openness, culture distance, product categories and experiences by providing empirical evidence based on a sample of 732 SMEs over 30 years (from 1979 to 2008) in China.

Key words: Luxury Goods, International Brands, Market Entry, Post-entry Change, Transaction Cost Economy