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Author:Schwens, C.
Eiche, J.
Kabst, R.
Title:The moderating impact of informal institutional distance and formal institutional risk on SME entry mode choice
Journal:Journal of Management Studies
2011 : MAR, VOL. 48:2, p. 330-351
Index terms:small and medium-sized enterprises (SMEs)
risk management
small business
Germany
Language:eng
Abstract:This study explores informal institutional (herein as: inst-al.) distance and formal inst-al. risk as moderators on the relationship btw. frequently examined decision-making criteria and the entry mode decision of small and medium-sized enterprises (SMEs). It is shown that the influence of international experience, know-how, and strategic importance on SME mode choice is contingent on the host country's institutional context. Based on a sample of over 220 German SMEs, the study hypotheses are tested. There is found support for the theoretical predictions of this study, forging a link btw. inst-al. and SME entry mode literature.
SCIMA record nr: 272671
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