Change of foreign operation method: impetus and switching costs
This paper explores what factors motivate exporters to change their foreign market servicing mode from using independent distributors and agents to setting up their own local sales organization, and what factors impede such changes (switching costs). Using data from a sample of 214 Danish exporters, of which 32 had changed their foreign operation method between 1992 and 1997, the analysis shows that switching cost factors are indeed of particular importance in order to explain the incidence of such changes.
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Volume (Year): 11 (2002)
Issue (Month): 3 (June)
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- Leonidas C Leonidou & Constatine S Katsikeas, 1996. "The Export Development Process: An Integrative Review of Empirical Models," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 517-551, September.
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- Benito, Gabriel R. G. & Pedersen, Torben & Petersen, Bent, 1999. "Foreign operation methods and switching costs: conceptual issues and possible effects," Scandinavian Journal of Management, Elsevier, vol. 15(2), pages 213-229, June.
- repec:tpr:qjecon:v:91:y:1977:i:2:p:241-61 is not listed on IDEAS
- Calof, Jonathan L., 1993. "The mode choice and change decision process and its impact on international performance," International Business Review, Elsevier, vol. 2(1), pages 97-120.
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