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Beyond entry mode – SME escalation in emerging markets: a conceptual framework

Beyond entry mode – SME escalation in emerging markets: a conceptual framework Drawing on core theories of international business research, this conceptual paper moves from a focus on the firms’ ‘entry mode’ decisions towards an interesting aspect of small firms’ international behaviour – namely their escalation of commitment to emerging markets. Escalation is the dynamic aspect of the entry strategy (and international form of presence) and refers to the change in the mode of presence that firms experience in a market over time. Several studies report that small and medium sized firms (SMEs) face difficulties in escalating in emerging markets. The paper investigates this issue by building a conceptual framework that links the escalation of a firm’s commitment in an emerging market to a firm’s endowment of resources and capabilities, as well as to the feedback it receives from the market and to the moderating impact of institutional voids – a key contextual aspect of emerging markets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal for International Business and Entrepreneurship Development Inderscience Publishers

Beyond entry mode – SME escalation in emerging markets: a conceptual framework

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd. All rights reserved
ISSN
1549-9324
eISSN
1747-6763
DOI
10.1504/JIBED.2014.064452
Publisher site
See Article on Publisher Site

Abstract

Drawing on core theories of international business research, this conceptual paper moves from a focus on the firms’ ‘entry mode’ decisions towards an interesting aspect of small firms’ international behaviour – namely their escalation of commitment to emerging markets. Escalation is the dynamic aspect of the entry strategy (and international form of presence) and refers to the change in the mode of presence that firms experience in a market over time. Several studies report that small and medium sized firms (SMEs) face difficulties in escalating in emerging markets. The paper investigates this issue by building a conceptual framework that links the escalation of a firm’s commitment in an emerging market to a firm’s endowment of resources and capabilities, as well as to the feedback it receives from the market and to the moderating impact of institutional voids – a key contextual aspect of emerging markets.

Journal

Journal for International Business and Entrepreneurship DevelopmentInderscience Publishers

Published: Jan 1, 2014

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