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The Choice of Foreign Market Entry Modes: The Role of Resources and Industrial Driving Forces

Author

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  • Andrea S. Gubik

    (University of Miskolc)

  • Sándor Karajz

    (University of Miskolc)

Abstract

The objective of the paper is to analyse the effects of corporate resources, attitudes of owner/entrepreneur/manager to internationalisation and the characteristics of the business industry on the entry mode choice. Based on factor and cluster analyses the authors highlight the latent structure lying behind different variables and find typical groups of companies matching the identified factors. Providing physical resources and access to appropriate information is necessary, but not sufficient. The attitude of the owner/entrepreneur/manager to internationalisation should be improved as well so that they will be able to appear and operate successfully in international markets. Giving the right place to subjective matters in promoting internationalisation may contribute to the increase in corporate participation in different support programs. On the basis of the obtained findings, different waysof how support programs can promote the companies’ international activities and strengthen their commitments to achieving higher added values can be defined.

Suggested Citation

  • Andrea S. Gubik & Sándor Karajz, 2014. "The Choice of Foreign Market Entry Modes: The Role of Resources and Industrial Driving Forces," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(1), pages 49-63.
    • Handle: RePEc:krk:eberjl:v:2:y:2014:i:1:p:49-63
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    File URL: http://eber.uek.krakow.pl/index.php/eber/article/download/36/41
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    References listed on IDEAS

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    5. Niels Bosma & Dirk De Clercq, 2004. "Why are some firms more internationally committed thand others? The role of knowledge, firm development stage, and optimism," Scales Research Reports N200408, EIM Business and Policy Research.
    6. Pavlos Dimitratos, 2002. "The firm's location in the home country and internationalisation: Some evidence from Greek smaller firms," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 37(2), pages 91-100, March.
    7. 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.
    8. Kent Eriksson & Jan Johanson & Anders Majkgård & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 337-360, June.
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    Citations

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    Cited by:

    1. Vijay Narayanan, 2015. "Export Barriers for Small and Medium-sized Enterprises: A Literature Review based on Leonidou’s Model," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(2), pages 105-123.
    2. Bartha, Zoltán & S. Gubik, Andrea, 2014. "The Role of Business Knowledge in the Internationalisation Process of Hungarian Corporations," MPRA Paper 57214, University Library of Munich, Germany, revised 27 Jun 2014.
    3. Izabela Kowalik & Lidia Danik & Petr Král & Hana Řezanková, 2017. "Antecedents of Accelerated Internationalisation of Polish and Czech Small and Medium-Sized Enterprises," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(3), pages 31-48.
    4. S. Gubik, Andrea & Bartha, Zoltán, 2014. "The Significant Elements of Business Knowledge in the Internationalisation Process of the Visegrad Group Corporations," MPRA Paper 59578, University Library of Munich, Germany, revised 18 Jun 2014.
    5. Bartha, Zoltán & S. Gubik, Andrea, 2014. "Specifics of International Business Competitiveness in Visegrad Countries – Qualitative Analysis of Selected Case Studies," MPRA Paper 57211, University Library of Munich, Germany, revised 16 Jun 2014.

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    More about this item

    Keywords

    Internationalisation; resources for internationalisation; attitudes for internationalisation; industrial driving forces;
    All these keywords.

    JEL classification:

    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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