Choice of Entry Mode in International Markets

What is it about?

The aim of this study is to analyze the variables related to the choice of entry mode in international markets made by executives of Brazilian companies in the electronics sector. To this end, was conducted a qualitative study of exploratory nature. More specifically, were collected interviews with nine business executives who have experienced processes of internationalization and choice of entry modes and with five experts on the topic.

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Why is it important?

The data processed through the technique of thematic content analysis allowed to verify that the variables considered by Brazilian executives during the decision of entry mode are as follows: (i) cost; (ii) control; (iii) risk; (iv) cultural distance; (v) geographical distance; (vi) speed of internationalization and total travel time; (vii) multinational experience of the firm; (viii) market attractiveness; (ix) incentives of Brazilian entities; (x) the choice of the right partner; and, (xi) return from the operation. Still, based on the data obtained, it was possible to observe that the entry mode most used by the companies interviewed in the electronics sector is the exportation, while the franchises don't call the attention of executives.