The influence of entry mode decisions on international marketing policies. A framework

• Author: Fabio Musso
• Position: University of Urbino, Italy
• Pages: 539-544

Performance and Risks in the European Economy

539

The Influence of Entry Mode Decisions on International Marketing

Policies. A Framework

Fabio Musso

1

Abstract: Several studies on firms' marketing strategy in foreign markets revealed inconsistent results

regarding the relationship between entry mode strategies and the adoption of mark eting policies. This

inconsistency was due to the diversity of assumptions used for the conceptualization of the influence of entry

modes on marketing strategies. The purpose of this paper is to offer a conceptual model that ca n support the

analysis of how the firm’s choice of entry mode may influence the adoption of marketing tools in the selected

market.

Keywords: Entry mode; International strategy; international marketing; foreign markets

JEL Classification: M16; M11

1. Introduction

In recent years the question of marketing program adaptatio n to foreign market has become a relevant subject of

discussion (Zou & Cavusgil, 2002).

Many researches have investigated factors that may influence the a doption of marketing tools by the four

dimensions of the marketing program: product, promotion, price, and distribution. Facto rs like type of product,

technology, international experience, structure and nature of foreign competition, organizational factors, political

factors, market infrastructure, and cultural/environmental factors have been identified as the main influencing

drivers for firms' decisions (Jain 1989; Ga nesh et al., 1996; Chung & Wang, 2006; Alimiené & Kuv ykaité, 2008;

Birnik & Bowman, 2007; Theodosiou & Katsikeas, 2001; Katsikeas et al., 2006; Samiee & Roth, 1992; Özsomer

& Simonin, 2004; Theodosiou & Leonidou, 2003; Viswanat han & Dickson, 2007).

The tendency to use a re levant number of independent variables in the analyses, as well as the adoption of

sophisticated statistical methodologies have not, however, contributed to the understanding of the influencing

factors of marketing decisions. Some authors (Ryans et al., 2003) suggested that a more consistent conceptual

base should be necessary for this topic and that assumptions should be review by scholars.

The objective of this paper is to identify a conceptual framework as a base for the analysis of the relationship

between entry mode strategies and marketing activities. According to literature, the main strategic decisions in

the internationalization of firms a re those related to the market selection and en try mode choice (Douglas &

Craig, 1989; Agndal & Chetty, 2007; Musso & Francioni, 2010; Sakarya, Eckman, & Hyllegard, 2007). Indeed,

the decisions relating t o the i nternational market selection (Ellis, 2000; Sakarya, et al., 2007) and entry mode

selection (Brouthers & Nakos2004; Lu, 2002; Root, 1998) are considered to be the most critical for a firm’s

success abroad (Agndal & Chetty, 2007).

Even if market selection decisions and entry mode decisions are strictly connected, the analysis that follows will

focus on the choice of entry mode and its influence on mar keting policies.

1

University of Urbino, Italy, Department of Economics, Society and Political Studies, Address: Via Aurelio Saffi, 2,

Centralino, Italy, tel.: (+39) 0722 3051, Corresponding author: fabio.musso@uniurb.it.