Doing Business in Emerging Country Markets: How Korean Small- and Medium-sized Firms Overcome Liabilities of Foreignness in India

Purpose: The purpose of this study was to deeply understand the establishment of strategies in the Indian market by in-depth analysis of not only successful cases but also failure cases. Research design, data, and methodology: Based heavily on the eclectic theory and the institutional theory, this study analyzed the cases of small and medium-sized venture companies entering India and proposed a strategy for the success of small and medium-sized venture companies entering India later. Results: First, Korean small an d medium-sized ventures need to take a long-term approach to entering India, mindful of the oral effects of Indian consumers. Second, when attempting to export directly or indirectly to India, it is necessary to secure a distribution partner with abundant knowledge of the local market. Third, India needs a localization strategy of products and marketing rather than a global strategy, and at the same time, it is important to realize close relationships with government officials as relational culture is emphasized in India. Implications: This study proposed the direction of government policy for enterprises entering India as follows: First, the operation of the Indian market research program and the establishment of research institutes should be promoted. Second, a task force of an entity should be formed within a government-related agency. The committee should actively support Korean small and medium-sized venture companies to enter India through a task force for joint entry with India-specialized support. Third, it is required to strengthen the partnership with the Indian government at the government level. As laws and regulations that even large companies find difficult exist in India, the government should manage and support the risks of laws and regulations that are difficult for small and medium-sized enterprises and ventures through negotiations with the Indian government.