Market entry timing and associating factors: A case study of Swedish firms

Abstract: Abstract Keywords Market entry timing, associating factors Background Market entry timing is an important concept that influences the success of firms in international business. Companies earn big profits due to their perfect market entry timing. In contrast, McKinsey 2005 report showed that for every successful entry, there are four failures. On the other hand, the academic world also pays attention to entry timing by investigating its associating factors. Since there are gaps in academic research together with the need for deeper understanding, this thesis is dedicated to market entry timing. Purpose The purpose is to understand associating factors and their relation to foreign market entry timing. Method This study is a multiple case study exploratory research analysed through pattern finding for qualitative research. Semi-structured in-depth interviews were conducted with four companies. Conclusion There are nine factors associating with entry timing decisions: home and host country characteristics, firm capabilities and characteristics, competition, cultural distance, economic factors, Window of Opportunity, Word-of-Mouth, Stepwise internationalization, near-market knowledge. The research focuses on the last four factors and their influence in entry timing were discovered. Window of Opportunity can be perceived as “right business connections” and companies tend to enter foreign markets once they find the right business connection. Word of Mouth has an impact on entry timing in the situation that firms can be prompted to enter foreign market when positive Word of Mouth effect existed. Stepwise internationalization is the choice of firms, whose entry timing would be slower than other options. Near-market knowledge of the economic system can be transferred between countries that firms operate in and firms will be likely to enter market when they gain necessary knowledge of a similar economic system.