Internationalization, Entrepreneurship and the Smaller Firm

Internationalization, Entrepreneurship and the Smaller Firm

Evidence from Around the World

Edited by Marian V. Jones, Pavlos Dimitratos, Margaret Fletcher and Stephen Young

This forward-looking volume contains state-of-the-art analysis of the current research themes and challenges influencing the internationalization of SMEs.

Chapter 2: Does Entry Mode Matter? Reviewing Current Themes and Perspectives

Marian V. Jones and Stephen Young

Subjects: business and management, entrepreneurship, international business


Marian V. Jones and Stephen Young SUMMARY The mode of doing business across national borders was considered a pioneering topic in the late 1970s when concern was with the mode as a means of foreign market entry. Today, barriers to international trade and investment are significantly eroded and internationalization eased by improvements in technology, infrastructure and deregulation, and it is pertinent to ask: ‘Does entry mode matter?’ The question is addressed through a discussion of literature explicitly focused on entry modes, and that examining internationalization and international entrepreneurship more widely. Concluding that insufficient attention is paid to mode variety and motivations in both bodies of research, a series of models positioning modes within the internationalization process are advanced. The models demonstrate the confluence of influences from dynamic processes, and decision criteria on entry mode selection, motivations and internationalization path. While the role of the entry mode in current internationalization processes has evolved with changes in the world economy, it remains an important topic for research. Specifically, the authors call for research on the influence of technological change on entry modes; and deeper investigation of specific modes such as exporting, and of the role of social capital in the formation of formal modes of international business activity. INTRODUCTION The mode of foreign market entry was considered a pioneering topic for research in the late 1970s, but much of the literature related to multinational enterprises (MNEs), and the question is whether the subject is still worthy of research today. The last...

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