SMEs Entry Mode Decision Making Process: Rational or Cybernetic?

Abstract

Entry mode choice is a critical decision when a firm expends its business to foreign markets. By applying rational and cybernetic strategies to international strategic decision-making process, this paper investigates how small and medium sized firms (SMEs) decision makers decide their entry mode choices. By focusing on the entry decision making process, this research distinguishes the prior entry mode studies that emphasize the relationship between influencing factors and their impacts on entry mode choices. The results of this study show that SME managers normally adapt a combination of rational and cybernetic strategies in their international entry decision making process. This highlights that SMEs’ international entry decision making process is dynamic and complex.