IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/50067.html
   My bibliography  Save this paper

Foreign Markets Entry Mode Decision for Italian Small and Medium-Sized Enterprises

Author

Listed:
  • Musso, Fabio
  • Francioni, Barbara

Abstract

Using a resource-based view model, this paper examines the main factors influencing Small and Medium-Sized Enterprise (SME) international entry mode selection. In addition, a possible relationship between firms belonging to industrial districts and the entry mode choice has been verified. Data for the analysis of this study were collected interviewing 221 owners/managers of SMEs in Italy. Results showed that entry mode decisions are mainly influenced by firm specific factors. Furthermore, the study does not support the hypothesis of a connection between the firm’s belonging to an industrial district and firms’ behavior in entry mode selection. This study has made it possible to detect by a resource-based perspective the main factors influencing the choice of entry modes.

Suggested Citation

  • Musso, Fabio & Francioni, Barbara, 2011. "Foreign Markets Entry Mode Decision for Italian Small and Medium-Sized Enterprises," MPRA Paper 50067, University Library of Munich, Germany, revised 31 Oct 2011.
  • Handle: RePEc:pra:mprapa:50067
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/50067/1/MPRA_paper_50067.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    2. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    3. Brad Christerson, 1997. "The Third China? Emerging industrial districts in rural China," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 21(4), pages 569-588, December.
    4. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 29-53, March.
    5. Tan, Benjamin & Erramilli, Krishna & Liang, Tan Wee, 2001. "The influence of dissemination risks, strategic control and global management skills on firms' modal decision in host countries," International Business Review, Elsevier, vol. 10(3), pages 323-340, June.
    6. McDougall, Patricia Phillips & Oviatt, Benjamin M., 1996. "New venture internationalization, strategic change, and performance: A follow-up study," Journal of Business Venturing, Elsevier, vol. 11(1), pages 23-40, January.
    7. M Krishna Erramilli & Sanjeev Agarwal & Chekitan S Dev, 2002. "Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 223-242, June.
    8. Chen, Homin & Chen, Tain-Jy, 2003. "Governance structures in strategic alliances: transaction cost versus resource-based perspective," Journal of World Business, Elsevier, vol. 38(1), pages 1-14, February.
    9. P. N. O'Farrell & P. A. Wood & J. Zheng, 1998. "Regional Influences on Foreign Market Development by Business Service Companies: Elements of a Strategic Context Explanation," Regional Studies, Taylor & Francis Journals, vol. 32(1), pages 31-48.
    10. F. Xavier Molina-Morales, 2002. "Industrial districts and innovation: the case of the Spanish ceramic tiles industry," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(4), pages 317-335, October.
    11. Richard De Martino & David Mc Hardy Reid & Stelios C. Zygliodopoulos, 2006. "Balancing localization and globalization:exploring the impact of firm internationalization on a regional cluster," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(1), pages 1-24, January.
    12. Molina-Morales, F. Xavier, 2001. "European industrial districts: Influence of geographic concentration on performance of the firm," Journal of International Management, Elsevier, vol. 7(4), pages 277-294.
    13. Gomes-Casseres, Benjamin, 1989. "Ownership structures of foreign subsidiaries : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 11(1), pages 1-25, January.
    14. Dosoglu-Guner, Berrin, 2001. "Can organizational behavior explain the export intention of firms? The effects of organizational culture and ownership type," International Business Review, Elsevier, vol. 10(1), pages 71-89, February.
    15. Fletcher, Richard, 2001. "A holistic approach to internationalisation," International Business Review, Elsevier, vol. 10(1), pages 25-49, February.
    16. Davidson, William H., 1983. "Market similarity and market selection: Implications for international marketing strategy," Journal of Business Research, Elsevier, vol. 11(4), pages 439-456, December.
    17. Ivo Zander & Udo Zander, 2005. "The Inside Track: On the Important (But Neglected) Role of Customers in the Resource-Based View of Strategy and Firm Growth," Journal of Management Studies, Wiley Blackwell, vol. 42(8), pages 1519-1548, December.
    18. M Krishna Erramilli, 1991. "The Experience Factor in Foreign Market Entry Behavior of Service Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 479-501, September.
    19. James D Goodnow & James E Hansz, 1972. "Enviromental Determinants of Overseas Market Entry Strategies*," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 3(1), pages 33-50, March.
    20. Mingchun Sun & Edison Tse, 2009. "The Resource-Based View of Competitive Advantage in Two-Sided Markets," Journal of Management Studies, Wiley Blackwell, vol. 46(1), pages 45-64, January.
    21. Mitja Ruzzier & Bostjan Antoncic & Maja Konecnik, 2006. "The Resource-based Approach to the Internationalisation of SMEs: Differences in Resource Bundles between Internationalised and Non-Internationalised Companies," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 9(2), pages 95-116, November.
    22. Quer, Diego & Claver, Enrique & Andreu, Rosario, 2007. "Foreign market entry mode in the hotel industry: The impact of country- and firm-specific factors," International Business Review, Elsevier, vol. 16(3), pages 362-376, June.
    23. Sanjeev Agarwal & Sridhar N Ramaswami, 1992. "Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 1-27, March.
    24. Cawthorne, Pamela M., 1995. "Of networks and markets: The rise and rise of a South Indian town, the example of Tiruppur's cotton knitwear industry," World Development, Elsevier, vol. 23(1), pages 43-56, January.
    25. Gatignon, Hubert & Anderson, Erin, 1988. "The Multinational Corporation's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation," Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(2), pages 305-336, Fall.
    26. Pol Herrmann & Deepak K. Datta, 2006. "CEO Experiences: Effects on the Choice of FDI Entry Mode," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 755-778, June.
    27. J R Brown & C S Dev & Z Zhou, 2003. "Broadening the foreign market entry mode decision: separating ownership and control," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(5), pages 473-488, September.
    28. Yigang Pan & David K Tse, 2000. "The Hierarchical Model of Market Entry Modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(4), pages 535-554, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Musso, Fabio, 2014. "Lo sviluppo dei mercati esteri
      [Foreign market development]
      ," MPRA Paper 61016, University Library of Munich, Germany, revised 2014.
    2. Musso, Fabio & Francioni, Barbara, 2012. "How Do Smaller Firms Select Foreign Markets?," MPRA Paper 49117, University Library of Munich, Germany, revised 02 Nov 2012.
    3. Mara Del Baldo & Selena Aureli, 2012. "Networks’ Contribution To Small-Sized Firms’internationalization," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 2(1), pages 47-66, December.
    4. Marco Cioppi & Fabio Musso & Elisabetta Savelli, 2014. "Economic Crisis and Smes’ Behavior: An Analysis on the Furniture Sector in Italy," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 4(1), pages 115-126.
    5. repec:but:manage:v:4:y:2014:i:1:p:115-126 is not listed on IDEAS

    More about this item

    Keywords

    Small-medium sized enterprise; Resource-based view; Entry modes; Industrial district;

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:50067. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.