2007
DOI: 10.1007/s10843-006-0001-z
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Business models and market entry mode choice of small software firms

Abstract: So far the critical choice of the entry mode for a target country has been examined ignoring the special features of firms. Particularly, the impact of the wide variation of business models of software firms has been ignored. This multi case study investigates the relation between the business model and the entry mode, of eight software firms. The results imply that the product strategy and the service and implementation model of a software firm are closely connected to the entry mode choice, while the distrib… Show more

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Cited by 51 publications
(47 citation statements)
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References 36 publications
(69 reference statements)
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“…They often operate with constrained resources (especially for investment in new projects), specialist skill shortages, and a small customer base over which they have little control. They face entry barriers imposed by larger competitors (Ojala & Tyrväinen, 2006), challenges with internationalization and markets distorted by the availability of free software, and are therefore often confined to niche markets of their own development. One important response to these difficult conditions is the ability to innovate; innovation facilitates the development of novel value for customers, streamlines internal development processes, and opens market spaces that are not yet dominated by larger competitors.…”
Section: Introductionmentioning
confidence: 99%
“…They often operate with constrained resources (especially for investment in new projects), specialist skill shortages, and a small customer base over which they have little control. They face entry barriers imposed by larger competitors (Ojala & Tyrväinen, 2006), challenges with internationalization and markets distorted by the availability of free software, and are therefore often confined to niche markets of their own development. One important response to these difficult conditions is the ability to innovate; innovation facilitates the development of novel value for customers, streamlines internal development processes, and opens market spaces that are not yet dominated by larger competitors.…”
Section: Introductionmentioning
confidence: 99%
“…In contrast to traditional entry modes such as partnerships or subsidiaries, active 1 Not every article included in this review adopted one of these five perspectives. Five papers employed an alternative theory, such as institutional theory (Huang and Sternquist 2007), or the business model literature (Ojala and Tyrv€ ainen 2006) to frame the study. We indicate clearly in Tables 2, 3, and 4 which theories were adopted in each article.…”
Section: Antecedents To Entry Mode Choicementioning
confidence: 99%
“…Instead, software product businesses use more wholesale and resale organizations as well as Internet as a sales channel [19]. In the international markets software service firms cooperating closely with customers tend to use representatives in the market, whereas firms developing semi-standardized enterprise solutions prefer sales subsidiaries of their own and firms offering mass-market products to consumers tend to choose cooperative entry modes where local organizations possess deep knowledge about the target market [21].…”
Section: Marketing and Sales In Software Businessmentioning
confidence: 99%