Unformatted text preview: fic purpose, thus the understanding of market conditions
might be non sufficient. In addition the theory argues that management risk attitudes should
be less risk averse when being financially successful, but we found that the company size may
affect the willingness to subject the company for risk, thus the company management might
use less resource committing market entry mode in order to minimize financial risk. Finally,
we found that although the companies do not exclude any market entry mode, the companies
prefer market entry modes that they have previous experience of, thus experience in using
individual MEMs affect the market entry mode decision. As long as a specific entry mode
does not result in total failure, the decision to use this particular entry mode will not be
evaluated, and thereby not being confirmed as the best way of entering a market.
When choosing an international market entry mode payback should affect the decision,
according to theory, however the companies do not co...
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This document was uploaded on 03/22/2014.
- Summer '14
- The Land