Unformatted text preview: , energy and other productive agents in the
target country, as well as the quality and cost of economic infrastructure (transportation,
communications and port facilities) have an evident bearing on entry mode decisions. Our
findings in case one revealed that this factor is irrelevant to the company, because all their
production is based in Sweden, thus contradicting the theory brought forward by Root (1994).
Furthermore, our findings in case two revealed that the company through their project-byproject strategy eliminates the target country production factors effect on choice of market
entry mode, as every project has to be financially viable, thus contradicting the theory argued
by Root (1994). 42 DATA ANALYSIS
Home country factors
Root (1994) state that home country factors such as market, production, and environmental
factors also influence a company’s choice of entry mode to penetrate a target country. Our
findings in case one and two revealed that the domestic market for both companies is
relatively small, and did not allow the comp...
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