engleski

How does the change in foreign market knowledge influence international mode of entry and international performance: A study of Croatian SMEs

Drawing from the knowledge-based internationalisation process, we examine how the change in SMEs’ foreign market knowledge influences its international performance. We also examine the effects of the change in foreign market knowledge with respect to international equity and non-equity mode of entry. The study of 100 Croatian SMEs was conducted between March and July 2015 by the means of questionnaire survey. Results show that in cases of non-equity mode of entry a decrease in knowledge about foreign customers and competitors led to an increase in international performance. Moreover, we observe that Croatian SMEs’ increase in knowledge about foreign distribution channels leads to equity mode of entry.

Croatian SMEs; International mode of entry; International performance; Knowledge about foreign market; Knowledge-based view

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