ABSTRACT
In this chapter, we have explored the influence of the distance between the home and host countries on the choice of international entry modes. The study focused on the choices of seven Moroccan SMEs in sub-Saharan Africa. To address this research problem, we used CAGE model of analysis, which proposes four dimensions of distance that influence firms’ international decisions, namely the economic, administrative or political, cultural and geographical dimensions. The results that emerge from this study suggest that (1) several dimensions can at the same time influence the choices made by SMEs; (2) each dimension has different attributes and the nature of these can differ from one context to another, hence the importance of specifying them; (3) the economic distance (economic potential of the country) and the administrative or political distance (existing regulations in the country and security risks) are the most decisive factors when choosing entry modes; and finally, (4) that the distance alone is not sufficient to explain SMEs’ choices, it is important to also take into account their internal factors such as their managerial capacities and their financial resources
