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The Incubator Concept as an Entry Mode option for SME’s

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  • Anna Marie Dyhr Ulrich

    (Department of Border Region Studies, University of Southern Denmark, Denmark)

  • Svend Hollensen

    (Department of Border Region Studies, University of Southern Denmark, Denmark)

Abstract

The aim of this article is to investigate the relevance of an alternative entry mode, the incubator concept. Such an alternative entry mode like the so-called incubator is increasingly being used as a shortcut or bridge to a distant market. In-depth qualitative research on a selected case (Kelsen Group selling butter cookies to India) reveals the reasoning behind the entry mode choice of a company entering an emergent market (India). The incubator option provides the opportunity for a company to bridge the ‘gap’ between a low-control entry mode (e.g. importer or distributor) and high-control entry mode (e.g. wholly owned sales subsidiary), without involving too high risks and still keep a reasonable level of control.

Suggested Citation

  • Anna Marie Dyhr Ulrich & Svend Hollensen, 2014. "The Incubator Concept as an Entry Mode option for SME’s," Transnational Marketing Journal, Oxbridge Publishing House, UK, vol. 2(1), pages 1-19, May.
    • Handle: RePEc:mig:tmjrnl:v:2:y:2014:i:1:p:1-19
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    1. Gao, Qiuling & Cui, Lin & Lew, Yong Kyu & Li, Zijie & Khan, Zaheer, 2021. "Business incubators as international knowledge intermediaries: Exploring their role in the internationalization of start-ups from an emerging market," Journal of International Management, Elsevier, vol. 27(4).

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