Factors Affecting Market Entry Modes of Small and Medium Enterprises (SMEs) to China ---A Multiple Case Study of Thai SMEs

Abstract

The purpose of this research is to provide a better understanding of the influence of the factors affecting the choice of entry mode to China by small and medium enterprises (SMEs). The most commonly used entry mode theories; the resource-based theory, the transaction cost theory and the institution theory are integrated to develop a conceptual framework to investigate the main factors affecting international entry modes for SMEs to China. A qualitative case study methodology was used. Data was collected through semi-structured interviews with two Thai SMEs in order to gain an in-depth understanding of the topic being investigated. Based on the case studies, the main findings illustrate a clear connection between what existing theories claim to be the internal and external factors affecting the market entry mode choices by SMEs. However, this study found some factors that were in contradiction with the previous theories.

Keywords: Small and Medium Enterprises, Thailand, China, Entry modes, factor