The Effect of Market Orientation and Innovation Orientation on Foreign Market Entry

Abstract

This dissertation focuses on finding market orientation and innovation orientation which affect the difference of decision making of entry into foreign market in game industry which is a creative industry. Game industry, one of cultural-content industry which is considered as a typical knowledge-based industry, is not like the overseas expansion of traditional manufacturing industry, and has different strategy and performance of overseas expansion through a unit of product or project-based strategy. Therefore, it should be approached by each content unit, and necessary to look at the factors that make their decision makings of foreign market entry vary.

This dissertation examines 252 cases of online games in order to investigate strategic orientations, market orientation and innovation orientation for each foreign market and what entry type they chose according to the products developed at team level. This helps me analyze the factors affecting market orientation and innovation orientation in the perspectives of creativity and absorptive capacity in comprehensive way, and notice the phenomena which use different foreign distribution strategy like licensing or joint distribution instead of exclusive distribution through local subsidiary even though company already has wholly owned local subsidiary. This supplements the limit of the existing Resource-Based View, Resource-Dependent View, and traditional international business theories such as Transaction Cost Theory or OLI Paradigm(Eclectic Framework), and proves how company could reduce asymmetry of uncertainty and information in creative industry and whether they accomplish successful overseas expansion according to strategic orientations.