Foreign market entry mode choice of Australian firms

Abstract

The purpose of this study is to explore why firms choose an export mode over a non-export mode. Based on the institutional and research and capability perspectives, a theoretical model incorporating brand orientation, commitment, experience, industry group and foreign market competition intensity was empirically tested. A mail-out survey obtained responses from more than 300 internationally active Australian firms. Statistically significant results were found with three variables. Industry competition intensity effect and service industry encouraged the choice of an export mode. A strong brand orientation encouraged a non-export mode, such as direct foreign investment.