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Entry Mode Strategies into the Brazil, Russia, India and China (BRIC) Markets

Author

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  • Anna Marie Dyhr Ulrich

    (Anna Marie Dyhr Ulrich, Department of Border Region Studies, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg. E-mail: amdu@sam.sdu.dk)

  • Svend Hollensen

    (Svend Hollensen, Department of Border Region Studies, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg. E-mail: svend@sam.sdu.dk)

  • Britta Boyd

    (Britta Boyd, Department of Border Region Studies, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg. E-mail: bri@sam.sdu.dk)

Abstract

This article explores the relevance of different entry modes for Danish exporting small and medium enterprises (SMEs). Internal and external resources that influence the choice of entry modes into the Brazil, Russia, India and China (BRIC) markets are investigated from both a resource-based view (RBV) and a market-based view (MBV). The survey conducted by the University of Southern Denmark in 2012 is based on a sample of 177 Danish SMEs. Our results of this study show that Danish companies entering the BRIC markets mainly prefer low commitment modes. The more traditional internal factors (control, flexibility and risk) were evaluated less important than personnel and financial resources for the BRIC markets. The most important external factor was market potential whereas the trade barriers, cultural distance as well as the political and economical risk are viewed as main obstacles when internationalizing into distant markets. Managers can compensate the loss of control when choosing the lower commitment modes into distant markets by forming business networks and thereby gaining local knowledge.

Suggested Citation

  • Anna Marie Dyhr Ulrich & Svend Hollensen & Britta Boyd, 2014. "Entry Mode Strategies into the Brazil, Russia, India and China (BRIC) Markets," Global Business Review, International Management Institute, vol. 15(3), pages 423-445, September.
    • Handle: RePEc:sae:globus:v:15:y:2014:i:3:p:423-445
    DOI: 10.1177/0972150914535066
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    5. Qingnian Wang & Yunpei Wang & Xiaoping Li & Lan Tang, 2023. "The Sustainability of Family Ownership on the Choice of Foreign Market Entry Mode: Empirical Evidence from Listed Family Firms in China," Sustainability, MDPI, vol. 15(13), pages 1-16, July.
    6. Aldis Bulis & Sajal Kabiraj & Md Nur Alam Siddik, 2021. "Competitiveness Impedimental Factors of Latvian Manufacturing Companies in China," Global Business Review, International Management Institute, vol. 22(2), pages 290-310, April.
    7. Janti Gunawan & Kym Fraser, 2022. "Comparing Developed and Emerging Countries Exporting Performance: Does Strategic Choice or Environmental Pressure Matter?," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(3), pages 421-430, September.
    8. A. P. Pati, 2017. "Credit Risk Stress Testing Practices in BRICS: Post-global Financial Crisis Scenario," Global Business Review, International Management Institute, vol. 18(4), pages 936-954, August.

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