Foreign Market Entry Modes: The International Expansion of Spanish Wineries
DOI:
https://doi.org/10.26439/pjm2025.n002.7459Keywords:
: Modelo logit secuencial; proceso de elección en dos etapas; modalidad de exportación; industria del vinoAbstract
Objectives: Most of the existing literature on the export behavior of small firms examines two single-stage decision-making processes—whether or not to export, and which export mode to use—or integrates both decisions simultaneously into a single-stage model. This article proposes that the export decision and the choice of export channel are nested and non-independent. In light of the above, this study aims to test different entry mode choice processes: independent decisions versus nested and non-independent
decisions. Methodology: The study estimates and compares two models: (i) a simultaneous single-stage model with three entry mode choices, analyzed using a multinomial logit model, and ii) a two-stage model with the export decision preceding the channel decision, analyzed using a sequential logit model. Results: Resource-based factors are used to determine these internationalization decision-making processes, and empirical analysis is conducted on a DOCa Rioja sample of 177 firms. Using the Akaike and Schwarz information criteria, the empirical evidence supports a nested structure in which the export decision precedes the export mode decision. The implications and contributions of these findings are discussed. Originality: This hierarchical perspective of the choices involved in the process is noteworthy for two reasons. First, it supports the idea that people have limited analytical capacity. Managers often break down complex decisions into a hierarchical process to make them more manageable. Second, it acknowledges that important differences exist between entry modes.
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