Title: Sunk costs, large domestic market, and the re-entry dilemma: export process in SMEs from a developing economy

Authors: Jorge Lengler

Addresses: Durham University Business School, Durham University, Millhill Lane, Durham, Durham CO, DH1 3LB, UK

Abstract: As domestic markets become more competitive, small and mid-sized firms (SMEs) from developing economies search for opportunities in foreign countries. Some of these companies exit and re-enter those markets several times. This study explores the role of export sunk costs, time-out period and domestic market size as variables influencing the decision to return or avoid the once-abandoned foreign market. To achieve these goals, top managers from three export SMEs from Brazil were interviewed using an interpretive approach. The results show that sunk costs involved in the re-entry process, the time-out period, and the domestic market size dissuade managers from re-entering abandoned foreign markets.

Keywords: re-entry; small and mid-sized firms; SME; sunk costs; developing economies.

DOI: 10.1504/IJEXPORTM.2024.142575

International Journal of Export Marketing, 2024 Vol.6 No.3, pp.298 - 318

Received: 22 Feb 2024
Accepted: 30 May 2024
Published online: 09 Nov 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article