Internationalization and entry mode determinants of SMEs

: the case of Adira

Abstract

This study aims to find out the reasons that push small and medium-seized enterprises (SMEs) to keep on expanding operations abroad as well as the motives they choose different modes on doing so. By adopting the case study methodology, we choose a company called Adira Metal Forming Solutions, S.A, (AMFS) in order to answer our proposed research question. Our findings suggest that the first motive that triggered the company to go international in the late 1960’s was the limited domestic market in which it was operating. This motive was also evidenced as a valid one for the whole process of internationalization. Additionally, the other motives that pushed the company to expand once it was already in the international market place were mainly the globalization of markets, the vision of the founder’s son, a risk diversification strategy and, more recently, a shift towards emerging markets. Finally, the export mode of entry seems to be the preferred entry mode adopted by the company. The main reasons could potentially be linked with a risk-averse manner of dealing with internationalization and constraints in terms of resources, which prevent the use of more intensive entry modes.

Date of Award	2015
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Laure Leglise (Supervisor)