Distance Factors in the Foreign Market Entry of Software SMEs
Ojala, A., & Kontinen, T. (2010). Distance Factors in the Foreign Market Entry of Software SMEs. In Software Business (pp. 49-62). Springer. doi:10.1007/978-3-642-13633-7_5
Julkaistu sarjassaLecture Notes in Business Information Processing
© 2010, Springer Berlin Heidelberg. This is an electronic final draft version of an article whose final and definitive form has been published in Lecture Notes in Business Information Processing by Springer.
Recent studies have indicated that the internationalization process of software SMEs is somewhat independent on the effect of psychic or geographic distance. However, these studies have analyzed the general pattern of entries where software SMEs not commonly follow a step-wise entry route from nearby countries to distant ones. Thus, it remains unknown what the effect of psychic and geographical distance is when these firms enter a distant foreign market. The findings in this case study reveal that psychic and geographic distance inhibited the foreign market entry of software SMEs. However, the distant foreign market entry of these firms was facilitated by distance-bridging and distance-compressing factors enabling foreign business operations despite the significant distance between the home and target country.