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Title: The dynamics of entry mode choice in challenging business environments: an exploratory study of medium sized exporters' entry into Africa

Authors: Henrik Gundelach; Michael W. Hansen

Addresses: Department of Management, Society and Communication, Centre for Business and Development Studies, Copenhagen Business School, Dalgas Have 15, DK-2000 Frederiksberg, Denmark ' Department of Management, Society and Communication, Centre for Business and Development Studies, Copenhagen Business School, Dalgas Have 15, DK-2000 Frederiksberg, Denmark

Abstract: This article studies the entry modes adopted by medium-sized enterprises (MEs) seeking market access to challenging business environments in Africa. Based on a review of the extant literature on entry mode choice and organisational learning in internationalisation, we develop a dynamic model for analysing entry mode choice of exporting MEs. Via a longitudinal study of 14 Danish MEs' attempted entry into the Kenyan market, we found that gaining better knowledge of own resources in relation to the Kenyan business environment did not make the MEs adjust their entry mode. The only behavioural adjustments in lieu of better knowledge were that several MEs, rather than changing their preferred entry mode, decided to abandon entry altogether. We ascribe this lack of adaptation of entry mode strategy to organisational inertia. In conclusion, we argue that our findings have important implications for the theory of organisational learning in internationalisation.

Keywords: export; internationalisation; Uppsala model; Africa; entry modes; challenging business environments; resource-based view; RBV; institutional perspective; medium-sized enterprises; MEs; path dependency; experiential learning; inertia.

DOI: 10.1504/IJEXPORTM.2020.107718

International Journal of Export Marketing, 2020 Vol.3 No.3, pp.174 - 203

Received: 09 Jul 2019
Accepted: 26 Oct 2019
Published online: 10 Jun 2020 *