Influences of cognitive dimensions on the collaborative entry mode choice of small- and medium-sized enterprises

Abstract

Purpose-Our paper addresses internationalisation of small and medium-sized enterprises (SMEs) by specifically focusing on collaborative entry modes. Despite significant research done on market entry 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 literature 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 equity-based vs. non-equity-based collaborative entry modes. Our empirical sample consists 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.

Combining Big Data and Artificial Intelligence for Managing Collective Knowledge in Unpredictable Environment—Insights from the Chinese Case in Facing COVID-19

“…Something more is required for all the organizations involved in the emerging era (Kanter 2003 ; Saviano et al 2017 ). New processes should be built acting on the collaboration and contamination among divergent perspectives to overcome reductionist boundary-based representations for identifying new business areas and market opportunities (Caputo 2016 ; Del Giudice et al 2017 ; Arrigo 2018 ).…”

Do entrepreneurial knowledge and innovative attitude overcome “imperfections” in the innovation process? Insights from SMEs in the UK and Italy

“…Commonly knowledge intensive industry seems to emphasize the relevance of employing entrepreneurial knowledge to the organizational environment and shares this with their external network (Egbu et al, 2004;Nordhaug, 1993;Leonard-Barton, 1995;Zhao and Wang, 2015;Scuotto et al, 2017a). They have a clear need for more knowledge and expertise which are acquired by establishing new relationships with external partners (Del Giudice et al, 2017b;Smith and Fischbacher, 2009;Scuotto et al, 2017bScuotto et al, , 2017d. However, nowadays knowledge intensive SMEs have to face up to multiple market imperfections in the development of an innovation process.…”

A stratified system of knowledge and knowledge icebergs in cross-cultural business models: Synthesising ontological and epistemological views

“…Therefore, people with different cultural values may perceive and learn knowledge in their culturally-distinctive ways because the cognitive processes of human beings are highly susceptible to cultural differences ( Nisbett et al, 2001 ; Del Giudice et al, 2017a ). Evidence also indicates that multinational enterprises (MNEs) with employees and strategic partners from diverse cultures often encounter cultural barriers in intra- and inter-organisational knowledge transmission and exchange ( Matricano et al, 2019 ; Kotabe and Murray, 2018 ; Papa et al, 2018 ; Del Giudice et al, 2017b ; Ahammad et al, 2016 ; Jiménez-Jiménez et al, 2014 ).…”