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2. How does distance affect market entry mode choice? Evidence from French companies

Author

Emna Moalla, Ulrike Mayrhofer, Ecole Supérieure des Sciences Commerciales d'Angers (ESSCA), Groupe de Recherche en Management - EA 4711 (GRM), Université Nice Sophia Antipolis (... - 2019) (UNS), COMUE Université Côte d'Azur (2015-2019) (COMUE UCA)-COMUE Université Côte d'Azur (2015-2019) (COMUE UCA)-Université Côte d'Azur (UCA), and Groupe ESSCA (ESSCA)

Subjects
Government, Distance, Strategy and Management, 05 social sciences, Mode (statistics), Sample (statistics), Country variables, Affect (psychology), [SHS]Humanities and Social Sciences, Foreign market entry mode, French companies, Host country, Geographical distance, 0502 economics and business, [SHS.GESTION]Humanities and Social Sciences/Business administration, 050211 marketing, Business, Mode choice, 050203 business & management, Industrial organization, Foreign market
Abstract

International audience; The objective of this article is to examine the relevant dimensions of distance for foreign market entry mode choice. Based on a sample of 203 interfirm linkages formed by French multinationals with partners across the world, we analyze the impact of four dimensions of distance on the choice between cooperative alliances and mergers-acquisitions. The findings indicate that administrative and economic distance have a significant influence on market entry mode choice, whereas the impact of cultural and geographic distance is not significant. They further highlight the important role of the host country's government effectiveness for market entry mode decisions.

Published
2020
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