SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation

Lina Hollender, Florian B. Zapkau and Christian Schwens

International Business Review, 2017, vol. 26, issue 2, 250-263

Abstract: Firms’ foreign market entry mode choice attracts considerable research attention. However, the performance implications of this choice remain inconclusive, particularly in the context of small and medium-sized enterprises (SMEs). The present paper draws on the resource-based view (RBV) and develops a theoretical model specifically tailored to the context of SMEs in order to study the relationship between entry mode choice and foreign venture performance. Testing hypotheses on 133 German SMEs, we show that international experience as a resource and product adaptation as a capability improve the performance of non-equity entry modes by mitigating liabilities of smallness inherent to SMEs. We furthermore find empirical support for the joint moderating effect of international experience and product adaptation on the focal relation. Our findings contribute to the SME foreign market entry mode literature and have implications for practitioners and future research.

Keywords: SMEs; Entry mode choice; International experience; Product adaptation; Performance (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:26:y:2017:i:2:p:250-263

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DOI: 10.1016/j.ibusrev.2016.07.003

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