Influences of Cognitive Dimensions on the Collaborative Entry Mode Choice of Small and Medium-Sized Enterprises

Manlio Del Giudice, Ahmad Arslan, Veronica Scuotto, Francesco Caputo

Research output: Contribution to journalArticle

13 Citations (Scopus)
12 Downloads (Pure)

Abstract

Purpose – Our paper addresses internationalisation of small and mediumsized enterprises (SMEs) by specifically focusing on collaborative entry modes. Despite significant research done on market entry and internationalisation strategies of firms, the use of collaborative entry modes by SMEs during internationalisation has not received a lot of attention. We contribute to foreign market entry studies by analysing the influences of cognitive dimensions on collaborative entry mode choice (equity vs. non-equity modes) of SMEs in their international markets. Design/methodology/approach – We analyse the influences of cognitive dimensions on the choice between equitybased vs. non-equity-based collaborative entry modes. Our empirical sample consists of internationalisation strategies of 345 Italian SMEs, where we used a questionnaire to collect the data. We use structural equation modelling (SEM) to analyse influences of factors like asymmetric information, informal institutional distance, time trends of country, perception of size and resources of potential host country partners, and perception of host country partners’ power on this important market entry mode. Findings – Our results show that high informal institutional distance leads to preference of non-equity-based collaborative entry mode by Italian SMEs. We also find that positive time trends of the host country, positive perception of size and resource of the local partner, as well as the local partners’ power leads to preference of equity-based collaborative entry mode by Italian SMEs. Originality/value – This study focuses on an ignored aspect of market entry strategies, i.e., equity vs. non-equity collaborative entry mode choice of SMEs. We use insights from resource based view and cognitive dimensions literature, to address the influences of five cognitive dimensions on the collaborative entry mode choice of SMEs during their internationalisation.
Original languageEnglish
Pages (from-to)652-673
JournalInternational Marketing Review
Volume34
Issue number5
Early online date31 Aug 2017
DOIs
Publication statusE-pub ahead of print - 31 Aug 2017

Fingerprint

Medium-sized enterprises
Entry mode choice
Equity
Host country
Entry mode
Time trends
Modeling
Resource-based
Market entry mode
Design methodology
Factors
Internationalization
Resources

Keywords

  • Cognitive Dimensions
  • Collaborative Entry Mode
  • Internationalisation
  • Resource Based View
  • SMEs

Cite this

Del Giudice, Manlio ; Arslan, Ahmad ; Scuotto, Veronica ; Caputo, Francesco. / Influences of Cognitive Dimensions on the Collaborative Entry Mode Choice of Small and Medium-Sized Enterprises. In: International Marketing Review. 2017 ; Vol. 34, No. 5. pp. 652-673.
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Influences of Cognitive Dimensions on the Collaborative Entry Mode Choice of Small and Medium-Sized Enterprises. / Del Giudice, Manlio; Arslan, Ahmad; Scuotto, Veronica; Caputo, Francesco.

In: International Marketing Review, Vol. 34, No. 5, 31.08.2017, p. 652-673.

Research output: Contribution to journalArticle

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