Title: International market selection, entry mode decisions and psychic distance for SMEs

Authors: Barbara Francioni

Addresses: Department of Economics, Society and Politics, University of Urbino "Carlo Bo", Via Saffi, 42 61029 Urbino, Italy

Abstract: The principal aim of this paper was to examine the internationalisation of Small and Medium-sized Enterprises (SMEs) with reference to the International Market Selection (IMS) and Entry Mode Selection (EMS) processes. To accomplish this, an investigation of the primary factors influencing IMS and EMS was conducted. Moreover, we sought to understand whether there was a relationship between the importance of Psychic Distance (PD) during these two processes and the characteristics of SMEs. Results revealed that SMEs are influenced by many factors, except by PD. A weak relationship between the number of markets and the influence of PD on EMS existed.

Keywords: IMS; international market selection; EMS; entry mode selection; psychic distance; SMEs; small and medium-sized enterprises; international strategy; SME internationalisation.

DOI: 10.1504/IJSCM.2014.060256

International Journal of Strategic Change Management, 2014 Vol.5 No.2, pp.93 - 106

Received: 31 Jan 2013
Accepted: 03 Nov 2013
Published online: 23 Oct 2014 *

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