Musso, Fabio and Francioni, Barbara (2009): Foreign markets entry mode decision for SMEs. Key factors and role of industrial districts.
Download (145kB) | Preview
The principal aim of this paper was to examine the internationalization of small and medium-sized enterprises (SMEs) in regard to the entry mode selection process. To successfully accomplish this, a resource-based view model was used to investigate the primary factors influencing a SMEs’ international entry mode. Data was obtained during direct interviews with owners/managers of SMEs in Italy. The results revealed that entry mode decisions were primarily influenced by firm specific factors, above all organizational culture. The study also illustrated that SMEs were not influenced by their belonging to an industrial district.
|Item Type:||MPRA Paper|
|Original Title:||Foreign markets entry mode decision for SMEs. Key factors and role of industrial districts.|
|Keywords:||Small and medium sized enterprises; Resource based view; Entry modes; Industrial Districts|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory
M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm
|Depositing User:||Fabio Musso|
|Date Deposited:||11. Jul 2011 16:18|
|Last Modified:||30. Dec 2015 23:49|
Agarwal, S., & Ramaswami, S. (1992). Choice of foreign market entry mode: impact of ownership, location and internalization factors. Journal of International Business Studies, 23(1), 1-27.
Ahokangas, P. (1998). Internationalisation and Resources. An Analysis of Processes in Nordic SMEs Ph.D. dissertation, University of Vaasa (Finland).
Akgüngör, S. (2006). Geographic Concentrations in Turkey’s Manufacturing Industry: Identifying Regional Highpoint Clusters European Planning Studies 14(2).
Amin, A. (1999). The Emilian Model: Institutional Challenges. European Planning Studies, 7(4), 389-405.
Amit, R., & Schoemaker, P. J. H. (1993). Strategic asset and organizational rent. Strategic Management Journal, 14(1), 33-46.
Anderson, E., & Gatignon, H. (1986). Modes of Foreign Entry: a Transaction Cost Analysis and Propositions Journal of International Business Studies(Fall), 1-26.
Barney, J. B. (1986). Organizational culture: Can it be a source of sustained competitive advantage. Academy of Management Review, 11(July), 656-665.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Barney, J. B., Wright, M., & Ketchen, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management 27, 625-641.
Becattini, G. (1992). El distrito industrial marshalliano como concepto socioeconomico. In F. Pyke, G. Becattini & W. Sengenberger (Eds.), Los distritos industriales y las pequenas empresas. Distritos industriales y cooperacion interempresarial en Italia (pp. 61-79). Madrid: Ministerio de Trabajo y Seguridad Social.
Becattini, G., & Rullani, E. (1993). Sistema locale e mercato globale. Economia e politica industriale, 80.
Belso-Martínez, J. A. (2006). Do industrial districts influence export performance and export intensity? Evidence for Spanish SMEs' internationalization process. European Planning Studies, 14(6), 791-810.
Blomstermo, A., Sharma, D. D., & Sallis, J. (2006). Choice of foreign market entry mode in service firms. International Marketing Review, 23(2), 211-229.
Brouthers, K. D., Brouthers, L. E., & Werner, S. (1996). Dunning's Eclectic Theory and the Smaller Firm: the Impact of Ownership and Locational Advantages on the Choice of Entry-modes in the Computer Software Industry. International Business Review 5(4), 377-394.
Brouthers, K. D., & Hennart, J.-F. (2007). Boundaries of the Firm: Insights From International Entry Mode Research. Journal of Management, 33(3), 395-425.
Brown, J. R., Dev, C. S., & Zhou, Z. (2003). Broadening the foreign market entry mode decision: separating ownership and control. Journal of International Business Studies, 34, 473–488.
Burgel, O., & Murray, G. C. (2000). The International Market Entry Choices of Start-Up Companies in High-Technology Industries. Joumal of Intemational Marketing, 8(2), 33-62.
Carpenter, M., Pollock, T. G., & Leary, M. M. (2003). Testing a model of reasoned risk-taking: governance, the experience of principals and agents, and global strategy in high-technology IPO firms. Strategic Management Journal, 24, 803-820.
Cawthorne, P. (1995). Of networks and markets: the rise and rise of a South Indian town, the example of Tiruppur’s cotton knitwear industry. World Development, 23, 43-56.
Chan, L. L. M., Shaffer, M. A., & Snape, E. (2004 ). In search of sustained competitive advantage: the impact of organizational culture, competitive strategy and human resource management practices on firm performance. International Journal of Human Resource Management, 15(1), 17-35.
Chen, H., & Chen, T.-J. (2003). Governance structures in strategic alliances: Transaction cost versus resource-based perspective. Journal of World Business, 38, 1-14.
Chetty, S., & Agndal, H. (2008). Role of Inter-organizational Networks and Interpersonal Networks in an Industrial District. Regional Studies, 42(2 ), 175-187.
Chetty, S., & Patterson, A. (2002). Developing internationalization capability through industry groups: the experience of a telecommunications joint action group. Journal of Strategic Marketing, 10, 69-89
Christerson, B., & Lever-Tracy, C. (1997). The third China? Emerging industrial districts in rural China. International Journal of Urban and Regional Research, 21(4), 569-588.
Conner, K. R. (1991). A historical comparison of resource-based theory and five schools of thought within industrial organization economics: do we have a new theory of the firm? Journal of Management, 17(1), 121-154.
Crick, D., & Jones, M. V. (2000). Small High-Technology Firms and International High-Technology Markets. Journal of International Marketing, 8(2), 63-85.
Davidson, W. H. (1982). Global Strategic Management. New York, NY: John Wiley & Sons. Davidson, W. H. (1983). Market Similarity and Market Selection: Implications for International Marketing Strategy. Journal of Business Research, 11(4), 439-456.
De Martino, R., Reid, D. M. H., & Zygliodopoulos, S. C. (2006). Balancing localization and globalization:exploring the impact of firm internationalization on a regional cluster. Entrepreneurship & Regional Development, 18(1), 1-24.
Douglas, S. P., & Craig, C. S. (1995). Global Marketing Strategy. New York, NY: McGraw-Hill. Driscoll, A. M., & Paliwoda, S. J. (1997). Dimensionalizing International Market Entry Mode Choice. Journal of Marketing Management, 13, 57-87.
Ekeledo, I., & Sivakumar, K. (1998). Foreign market entry mode choice of service firms: a contingency perspective. Journal of the Academy of Marketing Science, 26(4), 274-292.
Ekeledo, I., & Sivakumar, K. (2004). International market entry mode strategies of manufacturing firms and service firms. A resource-based perspective. International Marketing Review, 21(1), 68-101.
Erramilli, M. K. (1991). The experience factor in foreign market entry behaviour of service firms. Journal of International Business Studies, 22, 479-501.
Erramilli, M. K., Agarwal, S., & Dev, C. S. (2002). Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective. Journal of International Business Studies, 33(2), 223–242.
Erramilli, M. K., & Rao, C. P. (1993). Service Firms' International Entry-Mode Choice: A Modified Transaction-Cost Analysis Approach. Journal of Marketing 57(3), 19-38.
Espino-Rodríguez, T. F., & Padrón-Robaina, V. (2006). A review of outsourcing from the resource-based view of the firm. International Journal of Management Reviews, 8(1), 49-70. Friedman, D. (1988). The Misunderstood Miracle. Ithaca, NY: Cornell Univ. Press.
Gankema, H. G., Snuit, H. R., & Van Dijken, K. A. (1997). The internationalisation process of small and medium sized enterprises: An evaluation of the stage theory. In R. Donckells & A. Mitettinen (Eds.), Entrepreneurship and SME Research: On its Way to the Next Millenium (pp. 185-197). Aldershopt: Ashgate Publishing.
Gatignon, H., & Anderson, E. (1988). The multinational corporation’s degree of control over foreign subsidiaries: an empirical test of a transaction cost explanation. Journal of Law, Economics and Organization, 4(Fall), 305-336.
Giner, J. M., & Santa-Maria, M. J. (2002). Territorial systems of small firms in Spain: an analysis of productive and organizational characteristics in industrial districts. Entrepreneurship & Regional Development, 14, 211-228.
Gomes-Casseres, B. (1989). Ownership structures of foreign subsidiaries: theory and evidence. Journal of Economic Behavior and Organization, 11, 1-25.
Goodnow, J. J., & Hansz, J. E. (1972). Environmental Determinants of Overseas Market Entry Strategies. Journal of International Business Studies(Spring), 33-50.
Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33, 114-135.
Greenhalgh, S. (1984). networks and their nodes: urban society on Taiwan. The China Quarterly, 99(September). Hamilton, G. (1991). Business networks and economic development in east and southeast Asia. Hong Kong: Centre for Asian Studies, University of Hong Kong.
Herrigel, G. (1996). Industrial Constructions: The Sources of German Industrial Power. Cambridge: Cambridge Univ. Press. Herrmann, P., & Datta, D. K. (2006). CEO Experiences: Effects on the Choice of FDI Entry Mode. Journal of Management Studies, 43(4), 755–778.
Hill, C. W. L., Hwang, P., & Kim, W. C. (1990). An Eclectic Theory Of The Choice Of International Entry Mode. Strategic Management Journal, 11, 117-128.
Jones, M. V. (1999). The Internationalization of Small High-Technology Firms. Journal of International Marketing, 7(4), 15-41.
Kim, W. C., & Hwang, P. (1992). Global Strategy and Multinationals' Entry Mode Choice. Journal of International Business Studies, 23(1), 29-53.
Kogut, B., & Singh, H. (1988). The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19(3), 411-432.
Kristensen, P. H. (1992). Industrial district in West Jutland. In F. Pyke & W. Sengenberger (Eds.), Industrial Districts and Local Regeneration. International Institute for Labor Studies (pp. 111-234). Geneva.
Kumar, V. (2000). International Marketing Research. New Jersey, USA Prentice Hall. Kwon, Y.-C., & Konopa, L. J. (1993). Impact of Host Country Market Characteristics on the Choice of Foreign Market Entry Mode International Marketing Review, 10(3), 60-76.
Madhok, A. (1997). Cost, value and foreign market entry mode: The transaction and the firm. Strategic Management Journal, 18, 39-61.
McDougall, P. P., & Oviatt, B. (1996). New venture internationalization, strategic change, and performance: a follow up study. Journal of Business Venturing, 11, 23-40.
Mencarini, A. (2003). The decision-making process of international market and entry mode selection: a research study of SMEs in the industrial districts of The Marches in Italy. Ph.D. dissertation, University of Strathclyde (Scotland).
Miller, D., & Shamise, J. (1996). The resource-based view of the firm in two environment: The Holliwood firm studios from 1936 to 1965. Academy af Management Journal, 59, 519-543.
Molina-Morales, F. X. (2001). European industrial districts: Influence of geographic concentration on performance of the firm. Journal of International Management, 7, 277-294.
Molina-Morales, F. X. (2002). Industrial districts and innovation: the case of the Spanish ceramic tiles industry. Entrepreneurship & Regional Development, 14, 317 - 335.
Musso, F. (2000). Economie distrettuali e canali di distribuzione all’estero. Genova: INS-EDIT.
Musso F., Risso M. (2006), “CRS within large retailers international supply chains”, Symphonya on line, n. 1, ISSN: 1593-0319.
Musso F., Consoli D. (2010), “Marketing 2.0: A New Marketing Strategy”, Journal of International Scientific Publications: Economy & Business, Vol. 4, Part, 2, ISSN 1313-2555, pp. 315-325.
Musso F. (2010), “Innovation in Marketing Channels: Relationships, Technology, Channel Structure”, Symphonya: Emerging Issues in Management, n. 1, ISSN: 1593-0300.
Pepe C., Musso F., Risso M. (2010), “The social responsibility of retailers and small and medium suppliers in international supply chains”, Finanza, Marketing e Produzione, n. 3, ISSN: 1593-2230-5, pp. 32-61.
Musso F. (2011), "Small Retailing, Town Centres and Inland Territories. An “Extended Town Centre Management” Perspective", Public Administration & Regional Studies, 3rd Year, n. 2 (6), Galati University Press, ISSN 2065 -1759, pp 37-58.
Musso F. (2010), “Relational Dynamics within Vertical Business Networks: The Need for a Transdiscplinary Approach”, Annals of the University of Bucharest: Economic and Administrative Series, Issue 5, ISSN: 1842-9327. Musso F., Francioni B. (2012), “International strategy for SMEs: Criteria for foreign markets selection”, International Journal of Applied Behavioral Economics, n. 1, in corso di pubblicazione.
Nakos, G., & Brouthers, K. D. (2002). Entry Mode Choice of SMEs in Central and Eastern Europe. Entrepreneurship Theory and Practice, Fall, 47-63.
Nummela, N., Loane, S., & Bell, J. (2006). Change in SME internationalisation: an Irish perspective. Journal of Small Business and Enterprise Development, 13(4), 562-583.
O'Farrell, P. N., Wood, P. A., & Zheng, J. (1998). Regional influences on foreign market development by business service companies: elements of a strategic context explanation. Regional Studies, 32, 31-48.
Osborne, K. (1996). The channel integration decision for small- to medium-sized manufacturing exporters. International Small Business Journal, 14, 40-49.
Pallant, J. (2007). SPSS. Survival manual. New York: McGraw-Hill. Pan, Y., & Tse, D. K. (2000). The Hierarchical Model of Market Entry Modes. Journal of International Business Studies, 31(4), 535–554.
Pepe, C., & Musso, F. (2003). The international opening of small district firms. flexibility vs. consolidation in channel relations, in Proceedings of the Conference on, Clusters, Industrial Districts and Firms: the Challenge of Globalization. Modena, 12-13 September
Porter, M. E. (1998). Clusters and the new economic competition. Harvard Business Review, 76(6), 77-90.
Quer, D., Claver, E., & Andreu, R. (2007). Foreign market entry mode in the hotel industry: The impact of country- and firm-specific factors. International Business Review, 16, 362-376.
Quer, D., Claver, E., & Rienda, L. (2007). The impact of country risk and cultural distance on entry mode choice. An integrated approach. Cross Cultural Management: An International Journal, 14(1), 74-87.
Rodríguez, A. R. (2002). Determining factors in entry choice for international expansion. The case of the Spanish hotel industry. Tourism Management, 23, 597-607.
Root, F. R. (1998). Entry Strategies for International Markets. Revised and Expanded. San Francisco: John Wiley & Sons.
Roth, K. (1995). Managing international interdependence: CEO characteristics in a resource-based framework. The Academy of Management Journal, 38(1), 200-231.
Ruzzier, M., Antoncic, B., & Konecnik, M. (2006). The Resource-based Approach to the Internationalisation of SMEs: Differences in Resource Bundles between Internationalised and Non-Internationalised Companies. Zagreb International Review of Economics & Business, 9(2), 95-116.
Saxenian, A. (1994). Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Cambridge, MA: Harvard Univ. Press.
Sun, M., & Tse, E. (2009). The Resource-Based View of Competitive Advantage in Two-Sided Markets. Journal of Management Studies, 46(1), 45-64.
Tan, B., Erramilli, K., & Liang, T. W. (2001). The influence of dissemination risks, strategic control and global management skills on firms’modal decision in host countries. International Business Review, 10, 323–340.
Terpstra, V., & Sarathy, R. (1994). International Marketing. Fort Worth, TX: Dryden Press. Vasconcellos, J. A., & Hambrick, D. H. (1989). Key success factors: test of a general theory in the mature industrial-product sector. Strategic Management Journal, 10, 367-382.
Wernerfelt, B. (1984). A resource-based theory of the firm. Strategic Management Journal, 5(2), 171-180.
Wernerfelt, B. (1997). A resource-based view of the firm. In J. Foss Nicolai (Ed.), Resources, firms and strategies: A reader in the resource-based perspective (pp. 117-130). Oxford: Oxford University Press.
Wright, M., Westhead, P., & Ucbasaran, D. (2007). Internationalization of Small and Medium-sized Enterprises (SMEs) and International Entrepreneurship: A Critique and Policy Implications. Regional Studies, 41(7), 1013–1029.
Young, S., Hamill, J., Wheeler, C., & Davies, J. R. (1989). International Market Entry and Development. Strategies and Management. Englewood Cliffs, New Jersey: Prentice Hall.
Zander, I., & Zander, U. (2005). The Inside Track: On the Important (But Neglected) Role of Customers in the Resource-Based View of Strategy and Firm Growth. Journal of Management Studies, 42(8), 1519-1548.