Title: Market entry strategies into the BRIC countries - a comparison of Danish family and non-family businesses

Authors: Britta Boyd; Anna Marie Dyhr Ulrich

Addresses: Department of Border Region Studies, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg, Denmark ' Department of Border Region Studies, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg, Denmark

Abstract: Based on a sample of 177 exporting SMEs, this study investigates what market entry strategy is used by Danish family and non-family businesses. From a resource-based view, three critical internal factors (risk, flexibility and control) affecting the entry mode choice into the BRIC markets are analysed. The effective management of firms' resources and capabilities is influenced by the perception of these internal factors when expanding into foreign markets. Our results confirmed that family firms build up longer lasting relationships in the host country by choosing high commitment entry modes compared to non-family firms. Furthermore, the Danish exporters regarded China as being the most established of the four BRIC markets which could be seen in their willingness to use high control entry modes in China. Finally, non-family firms are more concerned about higher flexibility and lower control when entering the BRIC markets. In contrast, family firms choose high commitment entry modes which involve high risk and low flexibility when entering the BRIC markets. Further implications discuss the suitability of export strategies to BRIC markets for managers of Danish family and non-family firms.

Keywords: BRIC countries; entry mode; market entry strategy; family business; resource-based view; RBV; Denmark; non-family businesses; family firms; exporting SMEs; small and medium-sized enterprises; risk factors; flexibility factors; control factors; BRIC markets; export strategies.

DOI: 10.1504/IJGSB.2014.063405

International Journal of Globalisation and Small Business, 2014 Vol.6 No.1, pp.15 - 36

Received: 28 Sep 2013
Accepted: 19 Feb 2014

Published online: 26 Jul 2014 *

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