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International Market Entry: How Do Small and Medium-Sized Enterprises Make Decisions?

Title: International Market Entry: How Do Small and Medium-Sized Enterprises Make Decisions?
Authors: Ahi, Ali1 ali.ahi@lut.fi
Baronchelli, Gianpaolo2 gianpaolo.baronchelli@unibg.it
Kuivalainen, Olli3,4 olli.kuivalainen@manchester.ac.uk
Piantoni, Mariella5 mariella.piantoni@unibg.it
Source: Journal of International Marketing. Mar2017, Vol. 25 Issue 1, p1-21. 21p. 1 Diagram, 6 Charts.
Document Type: Article
Subject Terms: INTERNATIONAL markets
ENTRY mode strategies (Foreign markets)
DECISION making in business
SMALL business
EXPANSION (Business)
Author-Supplied Keywords: decision making ; entry and expansion modes ; international market entry ; market entry strategy ; small and medium-sized enterprises
Abstract: Choosing the right international market entry mode is of utmost importance for an internationalizing firm. However, there is a lack of analysis concerning the decision-making process (DMP), specifically with regard to small and medium-sized enterprises (SMEs). The authors study the DMP among SMEs intent on entering international markets and how it affects each firm's international market development strategy. Using six cases based in Finland and Italy, the authors develop a model of the SME DMP. Their results imply that the DMP evolves and goes through various phases. By focusing on the postentry phase, this study enhances knowledge on decision-making frameworks by linking the traditional international marketing literature related to initial entry mode with "mainstream" international business literature. Furthermore, the study reveals that SMEs adopting a more rational DMP are more likely to succeed in foreign markets, and consequently, it demonstrates the importance of real options reasoning as a theoretical lens for making entry mode decisions in the context of SMEs. [ABSTRACT FROM AUTHOR]
(Copyright applies to all Abstracts.)
Author Affiliations: 1Doctoral candidate, international business and marketing, School of Business and Management, Lappeenranta University of Technology. ; 2Assistant Professor, Department of Management, University of Bergamo. ; 3Professor, Alliance Manchester Business School, University of Manchester. ; 4Professor of International Marketing and Entrepreneurship, School of Business and Management, Lappeenranta University of Technology. ; 5Associate Professor, Department of Management, University of Bergamo.
Full Text Word Count: 12996
ISSN: 1069-031X (Sherpa/RoMEO, JCR)
PageCount: 1-22
volume: 25
issue: 1
issn: 1069031X
pubdate: 2017
DOI: https://doi.org/10.1509/jim.15.0130
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