Unformatted text preview: anies to mature before forced into
internationalization, which would suggest that the companies should use entry modes that do
not demand great amounts of resources. Although this is found to be true for the companies in
both case one and case two, the theory can not be verified as the relatively high production
costs in the companies’ domestic market should induce usage of entry modes that involve
production abroad, which is not the case. As our findings regarding home country factors are
inconclusive we cannot argue that they either support or contradict the theory brought forward
by Root (1994).
Geographic distance (Root, 1994 and Bell, 1995)
In addition Root (1994) also bring forward the geographic distance as an influencing factor.
Bell (1995) contributes to this by stating that firms initially target neighboring countries and
subsequently enters foreign markets with successively greater “psychic distance”. As stated in
our conceptual framework we will investigate both these factors. Our finding...
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