Unformatted text preview: ion of the factors influencing the market entry mode
decision the company should according to Root’s (1994) theory use the entry mode of
Licensing or Branch/ subsidiary exporting. After comparing our findings to the factors in
Root’s (1994) theory our findings showed that the company uses mainly indirect and agent
distributor exporting, which thereby contradicts the theory. It is however worth mentioning
that our findings placed the company in the Licensing or Branch/ subsidiary exporting entry
modes by only slight margin, which therefore makes the contradiction to theory not
conclusive. Furthermore our findings in case two revealed that the company’s products are
standardized and technology intense. Additionally the company use low product adaptation
and has substantial resources. This together with their high commitment should place the
company in the category of equity investment/ production according to Root (1994).
However, our findings show that the company mainly uses Indirect and Agent /distributor
39 DATA ANALYSIS
exporting, which contradicts the theory argued by Root (1994). The results in case two were
more conclusive in the contradiction against theory than our findings in ca...
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