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Understanding Family Firms’ Entry Mode Choices When Going to China and India: An International Opportunity Identification-Based Approach

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The Palgrave Handbook of Heterogeneity among Family Firms

Abstract

This chapter uses an international opportunity identification-based approach to understand specific foreign market entry mode choices of family firms. We employ an exploratory case study design based on ten German family firms’ entry mode choices for China and India. Our main findings suggest that for first-time entries, the type of international opportunity identification—accidental or purposeful—influences foreign market entry mode choices. Family firms that accidentally discover international opportunities choose an international joint venture, whereas purposeful searches lead to a selection of the most suitable foreign market entry mode only after careful consideration of different possibilities. Further, the perceived cultural distance of the target market impacts accidental opportunity discovery, a test phase carried out prior to market entry explains the dynamics of purposeful opportunity searches.

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Author information

Authors and Affiliations

  1. WIFU – Witten Institute for Family Business, University of Witten/Herdecke, Witten, Germany

    Ann Sophie K. Löhde

  2. IPAG LAB, IPAG Business School, Nice, France

    Andrea Calabrò

Authors
  1. Ann Sophie K. Löhde
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  2. Andrea Calabrò
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Corresponding author

Correspondence to Ann Sophie K. Löhde .

Editor information

Editors and Affiliations

  1. Bryan School of Business and Economics, University of North Carolina-Greensboro, Greensboro, NC, USA

    Esra Memili

  2. School of Business Administration, The University of Mississippi, University, MS, USA

    Clay Dibrell

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Löhde, A.S.K., Calabrò, A. (2019). Understanding Family Firms’ Entry Mode Choices When Going to China and India: An International Opportunity Identification-Based Approach. In: Memili, E., Dibrell, C. (eds) The Palgrave Handbook of Heterogeneity among Family Firms. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-77676-7_31

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