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The Asian Media & Mass Communication Conference 2010 Osaka, Japan
Foreign entry strategy of the service industry:
Case studies of the resource advantages of the
Taiwanese public relation consultants and their
subsidiaries in China
Shu-Yu Lin a , Min-Ping Kang b , Chen-Han Hsu c
ac Department of Communications Management, Shih Hsin University, Taipei,
Taiwan
b Graduate Institute of International Affairs and Global Strategy, National Taiwan
Normal University, Taipei, Taiwan
a7878587@hotmail.com a , mpkang19@gmail.com b , sprite0416@yahoo.com.tw c
Abstract
This study is to explore the resource advantages of the Taiwanese local public
relation companies and their entries to China. We take a local public relation company
in Taiwan, Elite Public Relation Consultant, as the research target and exam its
competence and resources in the local market and the process of exploitation of its
existing resources to a regional market.
Selecting a proper entrant strategy will determine the key of success in the future.
We suggest that difference entrance model would affect the capability of transferring
firm-specific assets from original company to foreign markets. It also could reduce
the uncertainty of the organization’s external environment effectively. Elite Public
Relation Consultant is the first Taiwanese public relation company that established a
subsidiary in China. This study will use Resource-Based View to discuss the
competence and resource configuration and its sequential entry strategy which
enabled it to leverage its firm-specific assets to a new market, and to acquire new
resources from the Chinese market. We also compare its strategy with Ogilvy, a
global advertising group, and other Taiwanese local company to support our theory.
The contribution of this study is to provide references for service and consulting
companies which prepare to expand their foreign market share. It can also help
scholars to understand the key factors of service industry succeed in leveraging
locations-specific advantages and firm-specific resources in foreign investments.
Keywords: Public relations agencies, Overseas investment, Resource-based theory
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