How do different dimensions of distance affect market entry mode choice ? An application of the CAGE-distance framework

Emna Moalla and Ulrike Mayrhofer ()
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Ulrike Mayrhofer: MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon

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Abstract: The purpose of this article is to assess the impact of national distance on market entry mode choice. Using the CAGE framework proposed by Ghemawat (2001), the authors measure the effect of four different dimensions of distance on the choice between cooperation and merger-acquisition. The hypotheses are tested on a sample of 203 interfirm linkages formed by French companies with partners across the world. The results indicate that administrative and economic distance has a significant influence on market entry mode choice, whereas the impact of cultural and geographic distance is not significant.

Keywords: cooperation; national distance; CAGE model; Internationalization; market entry modes; French companies.; merger-acquisition; interfirm linkages (search for similar items in EconPapers)
Date: 2014-12-11
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Published in 40th Annual EIBA (European International Business Academy) Conference, University of Uppsala, Dec 2014, Uppsala, Sweden

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01134087

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