Business Model Approach to Foreign Market Entry Mode : A case study on a Swedish gear manufacturing firm

Abstract: Background: The increasing presence of globalization in our everyday life makes it apparent that internationalization is no longer a topic relevant only for a few multinational companies, but for essentially every company that wishes to expand or even survive in their domestic market as well as in foreign markets. In light of this, research on how firm chooses FMEM has surged, and it is evident that it is an important topic. Numerous theories and factors have been examined in order to explain what motivates the choice of FMEM, but there is notable absence in connecting the business model to the FMEM. Despite the increasing attention and prominence of the business model, to date, there is little research that looks at FMEM decisions through a business model perspective.   Purpose: The purpose of this study is to answer the calls for new aspects and theories on the FMEM research field by exploring the role that the business model has on the choice of FMEM. This study will be executed through mapping a company’s business model and FMEM choice by collecting qualitative data through interviews to find links between the business model and the entry mode.   Method: This research is conducted through a qualitative single case study, using in-depth interviews for primary data collection.   Conclusion: The results of the analysis that was based on the empirical findings derived from the data collection, led to several conclusions being drawn. Firstly, the business model of the case company has had a great impact on the choice of FMEM of that company. Secondly, apart from influencing the choice of FMEM, the company’s business model has also contributed to the company further committing to their existing FMEM. Thirdly, as long as the case company intends to operate the same business model, with the same value drivers, it is likely to continue its commitment towards its existing FMEM.