Market entry decisions of US small and medium-sized software firms

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dc.contributor.author Ojala, Arto
dc.contributor.author Tyrväinen, Pasi
dc.date.accessioned 2011-11-10T12:00:54Z
dc.date.available 2011-11-10T12:00:54Z
dc.date.issued 2008
dc.identifier.citation Ojala, A. & Tyrväinen, P. (2008). Market entry decisions of US small and medium-sized software firms. Management Decision, 46 (2), 187-200.
dc.identifier.issn 0025-1747
dc.identifier.other TUTKAID_30383
dc.identifier.uri http://hdl.handle.net/123456789/36930
dc.description.abstract Purpose: This paper investigates market entry decisions of the U.S. software SMEs by analyzing the impact of the most obvious factors (cultural distance, geographical distance, country risk, and three market size variables) in traditional internationalization theories to target country selection. By investigating the influence of these commonly cited macro-level factors, this study proposes the best indicator for market entry decisions of the U.S. small and mediumsized software firms. Design/methodology/approach: This study uses quantitative research approach applied on a sample of 100 U.S. small and medium-sized software firms. Findings: Empirical findings in this study indicate that vertical (software) market size in a target country is the best single indicator for market entry decision, explaining alone 63% of market entries. Thus, the findings in this study suggest that the vertical market size gives a better explanation for market entry decisions of software SMEs than the earlier widely used variables. Research implications: Integrating earlier findings related to firm-level factors with findings of macro-level factors will help theory development and will facilitate obtaining a more holistic view of internationalization of knowledge-intensive SMEs. Practical implications: Findings in this study imply that managers should take an active role when they develop network relationships for the market entry. If a firm takes a passive role in networking, it might lose market opportunities available in the leading markets and end up in countries where the real market potential is low. Originality/value: This paper highlights vertical market size, which has been largely ignored in earlier studies, as the most important indicator for international market entry decision.
dc.language.iso eng
dc.publisher Emerald Group Publishing Limited
dc.relation.ispartof Management Decision
dc.rights © Emerald Group Publishing Limited. This is and electronic final draft version of an article whose final and definitive form has been published in Management Decision by Emerald.
dc.subject.other market entry en
dc.subject.other United States of America en
dc.title Market entry decisions of US small and medium-sized software firms
dc.type Article en
dc.identifier.urn URN:NBN:fi:jyu-2011111011658
dc.subject.kota 512
dc.contributor.laitos Department of Computer Science and Information Systems en
dc.contributor.laitos Tietojenkäsittelytieteiden laitos fi
jyx.tutka.volyme 46
jyx.tutka.mnumber 2
jyx.tutka.pagetopage 187-200
dc.type.uri http://purl.org/eprint/type/JournalArticle
dc.identifier.doi DOI:10.1108/00251740810854113
dc.date.updated 2011-11-10T04:30:16Z
dc.description.version Final draft
eprint.status http://purl.org/eprint/type/status/PeerReviewed

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