By Julia Christofor, Tobias Kollmann
With the continued dispersion of the worldwide electronic community and function advancements of data and communique applied sciences, resource-poor start-ups with on-line enterprise versions have emerges in huge numbers. those companies may be able to install their competitve benefits throughout their state forums early of their life-cycle and interact in overseas trade at a quick velocity. A elevated immediacy among the companies and the glabally obtainable patron is saw.
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Extra resources for Antecedents of Venture Firms' Internationalization: A Conjoint Analysis of International Entrepreneurship in the Net Economy
In addition, it is consistent with the broad definition of ‘international business’ and includes aspects of risk-taking, competitiveness and expansion. What is more, all types of firms are included; hence, it also encompasses E-Ventures. After having stated the research question and defined the field of research, in this chapter, first, the research aims and the value of research will be delineated and, second, the structure and the strategy of the thesis will be outlined. 1 Research Aims and Value of Research This study and its research questions are issue-driven (Buckley and Lessard, 2005), implying that the phenomenon of interest and the research contribution apply to an observation in firms.
In the following, the market entry modes will first be described and also discussed in order to shed light on the distinctions but also the advantages and disadvantages between the alternative entry modes. Indirect exporting: The initial contact with customers proceeds through a legally and economically autonomous third party in the form of an export trader, export agency or export co-operative (Bradley, 1991, p. 290). Characteristically, these parties are situated in the foreign country. These cooperation partners serve the main purpose for the firm, which needs a prolonged arm with market and country knowledge to engage in the international business activity.
2. 26 raise their prices above the competitive pricing level in the foreign market, due to low costs through synergy effects (Bain, 1956). Bain (1956) refers to price differences for a specific product in different country markets as an indicator for the level of market barriers. There is a pricing latitude for the established players as long as the market barriers prevent new entrants from competing in a specific market. If the new entrants manage to enter the market with low costs and a lower price, then the market barrier and the competitive advantage of the established players will be overcome.