FIRMS’ ENTRY CHOICES IN FOREIGN MARKETS: EMPIRICAL EVIDENCE FROM M.E.N.A.

The present paper addresses the factors influencing the firms’ choice of entry mode in international markets. In particular, the paper aims to explore two factors: one related to the external environment, and one dependent on firms. The first is the institutional context, intended as the whole of formal and informal rules of the country target. The second is the market commitment, intended as a construct of three factors: a) the resources committed in a particular market area, b) market knowledge meant as the result of the experience firms get in foreign market, c) and a general attitude of the decision makers to maintain the international presence for a long period of time. The theoretical analysis is completed by an empirical exploration performed by a Multiple Case Study analysis, of four European companies internationalized in the MENA. The results show that the kind of institutional context (hostile vs welcome) strongly impacts on the amount of resources involved in the internationalization process, while the level of market commitment (low vs high) impacts more on the complexity – and intensity - of the process.