Way of International Expansion – Explaining Effects on Expansion Modes of Pharmaceutical Companies in Developing Economies
Abstract
This paper follows a qualitative approach based on the principles of theory to investigate interdependencies between factors affecting the choice of market entry modes. Few research papers are analyzed briefly and a conceptual model is developed in the context of pharmaceutical companies expanding in developing economies. The analysis indicates that both initial and subsequent entry mode decisions result from a changing trade-off between specific market potential and risk factors. While the empirical study has an industry-related focus and thus generates practical perceptiveness, its implications for theory building are discussed in a broader perspective.