Experience as an Influential Factor on Entry Mode Choice

The aim of the study was to uncover how the factor of experience affects international entry mode choice of companies. First, a theoretical framework was established which illustrates company’s tendencies of entry mode choice by specifically considering Transaction Cost Theory and the Resource-based View. Secondly the goal of this thesis was to uncover different terms of experience and its influence on entry mode choice from existing research. The author established a four-dimensional framework summarizing terms of experience utilized in literature. The established dimensions are: Relational context, source of experience, depth of experience and positive/ negative experience. Finally in the empirical part of the research, the goal was to identify the case company’s entry mode choice in relation to their experience. The established dimensions of the experience term were considered and the applicability and usability of the established framework was tested. The research revealed that no every dimension of experience appears applicable and significant for the case company. The organization specifically considers the experience of the individual and the impact of positive and negative experience as particularly important. Although there are many different factors and policies affecting the cases entry mode choice, experience has influenced the decision too. Mostly using direct exporting, the company’s experience has partly influenced mode switch or changes within the chosen mode. Additionally this study gives a good impression of how experience is handled in international small-sized companies and what processes it influences besides entry mode choice.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format