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As stated in our conceptual framework we will

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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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