The empirical link between entry mode selection and barriers to internationalisation

This study examines the impact that barriers to internationalisation have on entry mode selection for Australian firms entering foreign markets. The study considers a comprehensive set of potential barriers to internationalisation and four major entry modes. The study was based on an empirical investigation of Australian firms having operations in foreign markets. The findings indicate that venture management characteristics, distribution access, foreign practices incompatible with domestic business, adapting to foreign market needs and foreign market attractiveness as barriers to internalisation were the significant determinants of entry mode selection for direct exporters, joint ventures, contract manufacturers and wholly owned subsidiaries.