Purpose – Our paper addresses internationalisation of small and medium-sized enterprisesud(SMEs) by specifically focusing on collaborative entry modes. Despite significant researchuddone on market entry strategies of firms, the use of collaborative entry modes by SMEsudduring internationalisation has not received a lot of attention. We contribute to foreign marketudentry literature by analysing the influences of cognitive dimensions on collaborative entryudmode choice (equity vs. non-equity modes) of SMEs in their international markets. udDesign/methodology/approach – We analyse the influences of cognitive dimensions on theudchoice between equity-based vs. non-equity-based collaborative entry modes. Our empiricaludsample consists of 345 Italian SMEs, where we used a questionnaire to collect the data. Weuduse structural equation modelling (SEM) to analyse influences of factors like asymmetricudinformation, informal institutional distance, time trends of country, perception of size andudresources of potential host country partners, and perception of host country partners’ powerudon this important market entry mode.udFindings – Our results show that high informal institutional distance leads to preference ofudnon-equity-based collaborative entry mode by Italian SMEs. We also find that positive timeudtrends of the host country, positive perception of size and resource of the local partner, asudwell as the local partners’ power leads to preference of equity-based collaborative entry modeudby Italian SMEs.udOriginality/value – This study focuses on an ignored aspect of market entry strategies, i.e.,udequity vs. non-equity collaborative entry mode choice of SMEs. We use insights fromudresource based view and cognitive dimensions literature, to address the influences of fiveudcognitive dimensions on the collaborative entry mode choice of SMEs during theirudinternationalisation.
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