The crucial factors of international market entry strategy in Irish SMEs
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Wang, Xiao Bing
MSc in International Business
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Market Entry Strategy has been discussed for many years. Different researchers from different prospective found different theories. Factors, which Influence market entry strategy, became the major issue affecting company to make correct decision. The purpose of this study was to examine the Hollensen's theory (2007) of Influencing factors of International market entry strategy in an Irish context. Because of the technology improved, such as internet, the traditional theory of market entry strategy would not be applied for new types of SMEs, such as on-line service software companies and consulting companies, adopt their strategy to on-line service. Therefore, more influencing factors should be considered. A random web survey of Irish IT (software) SMEs (n=100) employed, a response rate was 17%. The result suggests that Hollensen's theory is not suitable for modern service industry, especially IT (software) SMEs. The study found three new factors: Company Goal, Internet and Business Network Relationship, should be considered also when SMEs enter international market. Hollensen's theory should be applied to different situation. 12 hypotheses are designed and 3 are supported. Overall, the important factors were found that Market Entry Strategy has to depend on the industry and scale of business. This study provides supplementary factors for Hollensen's theory, but still has some questions concerning the limitation of the research scale and the validity. The findings of this study also have important implications for researchers.