How do different dimensions of distance affect market entry mode choice ? An application of the CAGE-distance framework

Emna Moalla (1) , Ulrike Mayrhofer (2)

1 ESCEM Tours Poitiers - ESCEM School of Business and Management
2 Laboratoire de Recherche Magellan

The purpose of this article is to assess the impact of national distance on market entry mode choice. Using the CAGE framework proposed by Ghemawat (2001), the authors measure the effect of four different dimensions of distance on the choice between cooperation and merger-acquisition. The hypotheses are tested on a sample of 203 interfirm linkages formed by French companies with partners across the world. The results indicate that administrative and economic distance has a significant influence on market entry mode choice, whereas the impact of cultural and geographic distance is not significant.

Mots clés: cooperation; national distance; CAGE model; Internationalization; market entry modes; French companies.; merger-acquisition; interfirm linkages

Domaines: Gestion et management

Emna Moalla, Ulrike Mayrhofer. How do different dimensions of distance affect market entry mode choice ? An application of the CAGE-distance framework. 40th Annual EIBA (European International Business Academy) Conference, University of Uppsala, Dec 2014, Uppsala, Sweden. ⟨hal-01134087⟩