Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190512 
Year of Publication: 
2016
Citation: 
[Journal:] European Journal of Management and Business Economics (EJM&BE) [ISSN:] 2444-8451 [Volume:] 25 [Issue:] 1 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2016 [Pages:] 22-35
Publisher: 
Elsevier, Amsterdam
Abstract: 
As developing economies have weak institutional environments, and these are highly distant from SMEs' home conditions in developed economies, those firms entering into developing economies should acquire new knowledge resources for a successful entry. In this paper, we analyze the type of knowledge required by SMEs to enter a foreign market, the alternative sources for acquiring that knowledge, and the specific challenges associated with the case of SMEs from developed economies in their first entry in developing economies. In our empirical work, we examined the specific case of Spanish SMEs entering Senegal as a first incursion in developing economies. This work shows evidence of usefulness to contribute to literature. Specifically, we found that the key knowledge is that which is specific to the target market, rather than the general knowledge about internationalization. In addition, we provide a matrix that summarizes the most appropriate sources to acquire each type of knowledge in the light of the main challenges identified: myopic managerial thinking, inflexible managers, absence of a culture of cooperation, and relevant knowledge embedded in local networks of the host market.
Subjects: 
Developing economies
Foreign market entry
Knowledge resources
Knowledge sources
Senegal
SMEs
JEL: 
O55
F23
M16
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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