How Do Smaller Firms Select Foreign Markets?

Musso, Fabio; Francioni, Barbara

doi:10.5539/ijms.v4n6p44

Cited by 19 publications

(15 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Moreover, these models are not capable of facing all the needs of the company, they have not been tested enough and they are often too complex to be implemented. Indeed, different empirical studies have indicated that firms, and in particular SMEs, usually do not adopt a systematic approach to market selection, because entry decisions are often made by "nonrational" reasons that apparently defy the optimizing logic of the market (Brown and Cook, 1990;Ellis, 1995Ellis, , 2000Lee and Brasch, 1978;Musso and Francioni, 2012;Francioni et al, 2013). Van Hoorn (1979), in a comparison with multinational enterprises, found that SMEs usually have not developed successful administrative policies and procedures, and have an inclination towards adopting opportunistic rather than systematic strategic decisions.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

International strategy for SMEs: criteria for foreign markets and entry modes selection

Musso

Francioni

2014

Journal of Small Business and Enterprise Development

Self Cite

View full text Add to dashboard Cite

Purpose - The purpose of this paper was to examine the internationalization of small and medium-sized enterprises (SMEs) in regard to the international market selection (IMS) and entry mode selection (EMS) processes. \ud Design/methodology/approach - To achieve this, an examination of the degree of systematic/active behaviour during IMS and EMS on a sample of 221 SMEs was conducted. Moreover, we sought to comprehend whether SMEs select foreign market and entry mode in a separate and sequential way, and whether there is a relationship between the sequentiality of IMS and EMS, on one side, and SME behaviour during these two processes, on the other side. Findings - Results revealed that SMEs have a non systematic and passive behaviour during IMS and EMS, respectively. Moreover, a high predilection in performing the two processes contemporaneously or without any logic was found. Finally, a strong relation between sequentiality of IMS and EMS and degree of systematic and active behaviour during the processes existed. \ud Originality/value - In this study, using a sample of SMEs located in a region of Italy, SME behaviour in the international market selection and entry mode choice processes was tested.\ud Keywords - International Market Selection, Entry Mode Selection; Small and medium size enterprises; International Marketing Strategy\ud Paper type - Research pape

show abstract

Section: Theoretical Backgroundmentioning

confidence: 99%

International strategy for SMEs: criteria for foreign markets and entry modes selection

Musso

Francioni

2014

Journal of Small Business and Enterprise Development

Self Cite

View full text Add to dashboard Cite

show abstract

“…This study was conducted among SMEs from Italy and it revealed that geographic and cultural/psychic distance did not play such significant role in selecting the international market as implied by other studies (see for example Johanson and Vahlne, 1977). Musso and Francioni (2012) supposed that the reason for their findings may be the fact that Italian SMEs use indirect entry modes when expanding abroad and therefore the distance and culture differences become their external partner's problem. Regarding the psychic distance, Nordman and Tolstoy (2014) added (based on their research conducted among Swedish SMEs) that psychic distance plays an important role in enterprise's ongoing foreign operations rather than in their decisions about market selection.…”

Section: Studies On Uppsala Model Applicabilitymentioning

confidence: 70%

“…Another research performed by Musso and Francioni (2012) was focused on analysing the internationalisation process in relation to international market choice. This study was conducted among SMEs from Italy and it revealed that geographic and cultural/psychic distance did not play such significant role in selecting the international market as implied by other studies (see for example Johanson and Vahlne, 1977).…”

Section: Studies On Uppsala Model Applicabilitymentioning

confidence: 99%

Can Uppsala Model Explain the Internationalisation of Central European SMEs?

Tuzová¹,

Toulová²,

Straka³

et al. 2015

EJOBSAT

View full text Add to dashboard Cite

The aim of this paper is to scrutinize some aspects of the Uppsala model whose applicability for SMEs' internationalisation is often questioned. This model explains internationalisation as a sequential process based on learning in which an enterprise increases its international commitment in incremental steps (Johanson and Vahlne, 1977). The assumptions of Uppsala model are discussed in conditions of SMEs from different countries, namely the Czech Republic, Slovakia, Poland, Austria and Germany. The paper is based on primary data obtained by questionnaire survey performed in 2014. Respondents were small and medium-sized firms from the above mentioned countries. Following assumptions are scrutinized: SMEs start internationalisation by exporting to neighbouring markets, SMEs behave in internationalisation according to the establishment chain, SMEs' risk perception regarding foreign markets with different psychic distance changes with the obtained knowledge and SMEs' risk perception regarding particular foreign markets differs depending on the country which the enterprise comes from.

show abstract

“…Few managers use a systematic approach, especially in SMEs (Musso and Francioni, 2012;Papadopoulos and Martìn Martìn, 2010;Sarasvathy, 2001;Westhead et al, 2001). There is no formalised and structured process in a sequence of steps, as can be seen in the rational market selection approach (Cavusgil, 1985).…”

Section: Perspective Description Theorymentioning

confidence: 99%

The evaluation of market attractiveness through the marketing intelligence approach: a tool for the SMEs

Iazzi

Trio

Pandurino

et al. 2015

IJMABS

View full text Add to dashboard Cite

The aim of this paper is to investigate the business and marketing intelligence in order to highlight its impact on the internationalisation of the SMEs. Starting from the assumption that intelligence is part of the marketing strategy, we propose a marketing tool to measure the international market attractiveness. Following the existing literature, we employ different measures according to the importance of the variable and to the perspective of the product. We have focused our analysis on the markets of USA and Russia, by searching, identifying and inserting in the system the web addresses of pages or documents of the sources to assess for specific indicators. The tool is a first attempt to provide to the SMEs a way to start the international market analysis process. The outcome is a synthetic marker representing the level of market attractiveness.

show abstract

How Do Smaller Firms Select Foreign Markets?

Cited by 19 publications

References 47 publications

International strategy for SMEs: criteria for foreign markets and entry modes selection

International strategy for SMEs: criteria for foreign markets and entry modes selection

Can Uppsala Model Explain the Internationalisation of Central European SMEs?

The evaluation of market attractiveness through the marketing intelligence approach: a tool for the SMEs

Contact Info

Product

Resources

About