ABSTRACT

The more plusses, the sooner the enterprise should opt for a hierarchical entry mode. The fewer the plusses, the sooner the enterprise should opt for an export mode. In between them, there is a third entry mode: the intermediate mode. The model comprises the sixteen factors: product differentiation advantage, complexity of the product, international experience, size of the enterprise, risk-avoiding behavior, control, flexibility, transferability of knowledge, opportunistic behavior, transaction cost, socio-cultural differences, risk of the country, market scope and market growth, trade barriers, intensity of the competition, and small number of intermediaries. The model assumes sixteen different factors that determine which entry mode is important. The assessment of these factors occurs with a plus or a minus