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How does distance affect market entry mode choice? Evidence from French companies

Author

Listed:
  • Emna Moalla

    (ESSCA - ESSCA – École supérieure des sciences commerciales d'Angers = ESSCA Business School)

  • Ulrike Mayrhofer

    (GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UniCA - Université Côte d'Azur)

Abstract

The objective of this article is to examine the relevant dimensions of distance for foreign market entry mode choice. Based on a sample of 203 interfirm linkages formed by French multinationals with partners across the world, we analyze the impact of four dimensions of distance on the choice between cooperative alliances and mergers-acquisitions. The findings indicate that administrative and economic distance have a significant influence on market entry mode choice, whereas the impact of cultural and geographic distance is not significant. They further highlight the important role of the host country's government effectiveness for market entry mode decisions.

Suggested Citation

  • Emna Moalla & Ulrike Mayrhofer, 2020. "How does distance affect market entry mode choice? Evidence from French companies," Post-Print hal-02273279, HAL.
    • Handle: RePEc:hal:journl:hal-02273279
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    Cited by:

    1. Nguyet Nguyen & Ha Thi Hoang Tran & Tuan Duong Vu, 2022. "Country Distance and Entry Mode Choice of MNEs in Vietnam’s Agricultural Sector in Context of Free Trade," Sustainability, MDPI, vol. 14(6), pages 1-16, March.
    2. Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2022. "Foreign bank lending: The role of home country culture during prosperous and crisis periods," Journal of Multinational Financial Management, Elsevier, vol. 66(C).
    3. Jamshid Alinasab & Seid Mohammad Reza Mirahmadi & Hassan Ghorbani & Francesco Caputo, 2022. "Discovering Knowledge and Cognitive Based Drivers for SMEs Internationalization," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2490-2518, September.
    4. Engsig, Juliane & Nielsen, Bo B. & Ramaroson, Andry & Chiambaretto, Paul, 2025. "How can global city attributes explain international strategic alliance formation?," International Business Review, Elsevier, vol. 34(2).
    5. Amir Zakery & Mohammad Sadegh Saremi, 2025. "The Role of Dynamic Capabilities in Internationalization Performance of Technology-Based Firms in Iran," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 453-477, March.
    6. Wang Zhou & Shuyue Xia & Jinglei Ye & Na Zhang, 2024. "How Do International Contractors Choose Target Market Based on Environmental, Social and Governance Principles? A Fuzzy Ordinal Priority Approach Model," Sustainability, MDPI, vol. 16(3), pages 1-18, January.
    7. Evguenia Bessonova & Ksenia Gonchar, 2024. "How regional courts in Russia affected multinational decisions on affiliate size, entry and organization," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 74, pages 51-77.
    8. Chun-Chien Lin & Yu-Ching Chiao & Tung-Lung Chang & Yu-Chen Chang, 2023. "The determinants of the use of process control mechanisms in FDI decisions in headquarters–subsidiary relationships," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    9. Fonfara Krzysztof & Hauke-Lopes Aleksandra & Soniewicki Marcin, 2021. "Does Psychic Distance Still Matter? Empirical Evidence from Poland," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(4), pages 32-56, December.

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