The Incubator Concept as an Entry Mode option for SME’s
The Incubator Concept as an Entry Mode option for SME’s
Author(s): Anna Marie Dyhr Ulrich, Svend HollensenSubject(s): Business Economy / Management, Marketing / Advertising, Socio-Economic Research
Published by: Transnational Press London
Keywords: Alternative Entry Modes; Incubator; Small- and Medium Sized Enterprises (SME); emerging markets; entry mode; international experience; control; social and cultural distance; risk; Kelsen Group; butter
Summary/Abstract: The aim of this article is to investigate the relevance of an alternative entry mode, the incubator concept. Such an alternative entry mode like the so-called incubator is increasingly being used as a shortcut or bridge to a distant market. In-depth qualitative research on a selected case (Kelsen Group selling butter cookies to India) reveals the reasoning behind the entry mode choice of a company entering an emergent market (India). The incubator option provides the opportunity for a company to bridge the ‘gap’ between a low-control entry mode (e.g. importer or distributor) and high-control entry mode (e.g. wholly owned sales subsidiary), without involving too high risks and still keep a reasonable level of control.
Journal: Transnational Marketing Journal (TMJ)
- Issue Year: 2/2014
- Issue No: 1
- Page Range: 1-19
- Page Count: 19
- Language: English
