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An Impact On Performance Of Foreign Market Entry Choices By Small And Medium-Sized Enterprises

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  • STEPHEN CHOO

    (School of Management, Curtin University of Technology, Perth, Australia)

  • TIM MAZZAROL

    (Graduate School of Management, University of Western Australia, Perth, Australia)

Abstract

A firm's performance in the host country to a great extent depends on its mode of market entry. Most research in the area of foreign market entry mode choice has concentrated on large firms or multi-national enterprises. This paper examines the effects of different foreign market entry modes on the performance of small and medium-size enterprises (SMEs) in Australia and Singapore. The data from a sample of 104 SMEs suggests that four market entry modes - licensing, manufacturing/wholly-owned subsidiary, franchising, and acquisition significantly impact performance. It was found that Singaporean firms were more likely to use these market entry modes than their Australia counterparts. This study also reveals that good performers tend to be relatively internationalised, in better control over their export channels, less dependent on industry information sources, and more concerned over loss of proprietary rights to knowledge. Implications of the findings for research and practice are also discussed.

Suggested Citation

  • Stephen Choo & Tim Mazzarol, 2001. "An Impact On Performance Of Foreign Market Entry Choices By Small And Medium-Sized Enterprises," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 291-312.
    • Handle: RePEc:wsi:jecxxx:v:09:y:2001:i:03:n:s021849580100016x
    DOI: 10.1142/S021849580100016X
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    Cited by:

    1. Mofir, 2020. "non disponibile," Mo.Fi.R. Working Papers 159, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    2. Laufs, Katharina & Schwens, Christian, 2014. "Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda," International Business Review, Elsevier, vol. 23(6), pages 1109-1126.
    3. Keith D. Brouthers & George Nakos, 2004. "SME Entry Mode Choice and Performance: A Transaction Cost Perspective," Entrepreneurship Theory and Practice, , vol. 28(3), pages 229-247, May.
    4. Nisar, Shaista & Boateng, Agyenim & Wu, Junjie, 2018. "The entry mode strategy and performance of SMEs: Evidence from Norway," Research in International Business and Finance, Elsevier, vol. 45(C), pages 323-333.

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