Cross-border e-commerce as a foreign market entry mode among SMEs: the relationship between export capabilities and performance

Purpose Although cross-border e-commerce has become increasingly popular among small and medium-sized enterprises as a foreign market entry mode, research on the determinants of its success is scarce. Drawing on the resource-based view, this study aims to examine the relationship between a firm’s information technology, international marketing and export operations capabilities and its cross-border e-commerce strategic and financial performance. Design/methodology/approach Partial least squares structural equation modeling was used to analyze data from a sample of Italian exporters in the food and beverage industry. Findings The results highlight the mixed effects of information technology, international marketing and export operations capabilities on both e-commerce strategic and financial performance. Moreover, the use of third-party e-commerce platforms reduces the effect of exporters’ information technology capabilities on their e-commerce financial performance. Research limitations/implications The majority of exporters in this study had implemented cross-border e-commerce only recently; hence, longitudinal data on the success factors of e-commerce are not available. Practical implications While cross-border e-commerce may work as an accelerator of the overall export performance, export managers are urged to approach it strategically with a clear medium-term view to develop the required capabilities. Originality/value This study was one of the first to examine the drivers of small and medium-sized exporters’ cross-border e-commerce performance. Moreover, unlike most previous analyzes, it focused on e-commerce as a foreign market entry mode rather than a supplement to offline exporting activities.

The Differing Foreign Entry Mode Choices for Sales and Production Subsidiaries of Multinational Corporations in the Manufacturing Industry

Foreign market entry mode research has been a popular area of study. However, a clear agreement between the usage of conventional constructs and their impact on a firm’s entry mode choice has not yet been found. This paper focuses on how, depending on the type of subsidiary that is established, multinational corporations (MNCs) in the manufacturing industry use different foreign market entry strategies. Previous research either treated types of subsidiaries synonymously or investigated them separately. However, due to the changing competitive landscape and disaggregation of value chain activities into separate subsidiaries, I find it necessary to compare how these entry mode choices differ depending on the activity each subsidiary is responsible for. My analysis finds that MNCs in the manufacturing industry are more likely to use joint ventures rather than wholly owned modes of entry for their production subsidiaries in comparison to their sales subsidiaries. I further explore how the international experience of the MNC strengthens this effect. This research utilizes a sample of 201 listed Korean manufacturing firms and 833 foreign market entry mode choices into 49 countries.

Is Social Media a Passport to SMEs’ Foreign Market Entry?

Social media has provided opportunities for businesses to develop close relationships with customers leading to customers’ engagement as it influences loyalty and satisfaction, and assists in expanding the markets. While small and medium enterprises (SME) are at a disadvantage compared to large firms, establishing management control in a foreign market remains a challenge. In addition, a considerable number of studies on foreign market entry mode choice have concentrated on large firms. Moreover, social media has become increasingly relevant for SME to “level the playing ground” with large firms. However, little is known about the SME role in engaging with their customers and especially in how SME use social media capabilities. We respond to this gap in the literature by exploring how SME use social media platforms to connect with customers in a foreign market. A qualitative analysis was conducted through in-depth interviews with six Portuguese firms. The findings indicate that social media provides a distinctive pathway to SME to connect emotionally with customers in a foreign market.