Adopting a quantitative explorative research design, we employed a sample of 770 foreign market entries in the period 2005-2015 to investigate whether particular entry mode strategies such as joint venture or wholly owned subsidiary are differently chosen by SMEs and large firms. Various tests have been carried out revealing that SMEs show some different features compared to large firms when selecting their entry mode. SMEs react differently to economic downturns and the diversification level is a crucial determinant for SMEs entry choices while it is not for large firms. Moreover, we found for a set of other factors affecting the entry choice of large firms, not being significant for SMEs. Implications of these findings are discussed.
Sestu Maria, C., Majocchi, A., D'Angelo, A., Entry Mode Strategies: Are SMEs Any Different?, in Dominguez, N., Mayrhofer, U. (ed.), Key success factors of SME internationalisation: A cross-country perspective, Emerald Group Publishing Limited, Howard House, Wagon Lane, Bingley, West Yorkshire 2018: 34 63- 80. 10.1108/S1876-066X20180000034004 [http://hdl.handle.net/10807/122921]
Entry Mode Strategies: Are SMEs Any Different?
D'Angelo, Alfredo
2018
Abstract
Adopting a quantitative explorative research design, we employed a sample of 770 foreign market entries in the period 2005-2015 to investigate whether particular entry mode strategies such as joint venture or wholly owned subsidiary are differently chosen by SMEs and large firms. Various tests have been carried out revealing that SMEs show some different features compared to large firms when selecting their entry mode. SMEs react differently to economic downturns and the diversification level is a crucial determinant for SMEs entry choices while it is not for large firms. Moreover, we found for a set of other factors affecting the entry choice of large firms, not being significant for SMEs. Implications of these findings are discussed.
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