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Success through Trust, Control, and Learning? Contrasting the Drivers of SME Performance between Different Modes of Foreign Market Entry.

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Title: Success through Trust, Control, and Learning? Contrasting the Drivers of SME Performance between Different Modes of Foreign Market Entry.
Authors: Holtgrave, Maximilian1 maximilian.holtgrave@wiwi.uni-muenster.de, Onay, Mert1 mert.onay@uni-muenster.de
Source: Administrative Sciences (2076-3387). Jun2017, Vol. 7 Issue 2, p9. 24p.
Subject Terms: *Entry mode strategies (Foreign markets), *Business enterprises, *Performance evaluation, *Foreign subsidiaries, Learning
Abstract: Globalization and international competition have driven a large number of small- and medium-sized enterprises (SMEs) to enter foreign markets. However, current knowledge on which factors determine SMEs' foreign market performance and secure their success is limited. Using empirical data on 280 German SMEs' activities in Arab markets, we contrast the performance effect of trust with those of control and learning (three of the most prominently studied success factors) across three different structural modes of market entry: non-equity entry, cooperative entry, and wholly-owned subsidiaries. Our results reveal marked differences between the three entry modes and we offer a detailed discussion of the underlying structural and cultural reasons. Consequently, this study allows for a comprehensive understanding of the determinants of SMEs' foreign market performance and provides relevant advice as to which managerial approach to emphasize for which mode of foreign market entry. [ABSTRACT FROM AUTHOR]
Copyright of Administrative Sciences (2076-3387) is the property of MDPI and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: Success through Trust, Control, and Learning? Contrasting the Drivers of SME Performance between Different Modes of Foreign Market Entry.
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  Data: <searchLink fieldCode="AR" term="%22Holtgrave%2C+Maximilian%22">Holtgrave, Maximilian</searchLink><relatesTo>1</relatesTo><i> maximilian.holtgrave@wiwi.uni-muenster.de</i><br /><searchLink fieldCode="AR" term="%22Onay%2C+Mert%22">Onay, Mert</searchLink><relatesTo>1</relatesTo><i> mert.onay@uni-muenster.de</i>
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  Data: <searchLink fieldCode="JN" term="%22Administrative+Sciences+%282076-3387%29%22">Administrative Sciences (2076-3387)</searchLink>. Jun2017, Vol. 7 Issue 2, p9. 24p.
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  Data: Globalization and international competition have driven a large number of small- and medium-sized enterprises (SMEs) to enter foreign markets. However, current knowledge on which factors determine SMEs' foreign market performance and secure their success is limited. Using empirical data on 280 German SMEs' activities in Arab markets, we contrast the performance effect of trust with those of control and learning (three of the most prominently studied success factors) across three different structural modes of market entry: non-equity entry, cooperative entry, and wholly-owned subsidiaries. Our results reveal marked differences between the three entry modes and we offer a detailed discussion of the underlying structural and cultural reasons. Consequently, this study allows for a comprehensive understanding of the determinants of SMEs' foreign market performance and provides relevant advice as to which managerial approach to emphasize for which mode of foreign market entry. [ABSTRACT FROM AUTHOR]
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  Data: <i>Copyright of Administrative Sciences (2076-3387) is the property of MDPI and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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        Text: English
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