Determinants of mobile network operators' choice of cross-border entry modes

Authors:
Torsten J. Gerpott;Nejc M. Jakopin
Affiliations:
Mercator School of Management, University of Duisburg Essen, Lotharstr. 65, D-47057 Duisburg, Germany.;Arthur D. Little GmbH, Breite Strasse 27, D-40213 Duesseldorf, Germany
Venue:
International Journal of Mobile Communications
Year:
2008

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Abstract

This study provides empirical findings on determinants of Mobile Network Operators' (MNOs) choices of cross-border entry modes. Announcements of 111 international expansion moves by 27 MNOs between 1989 and 2004 are used to test study hypotheses. Logistic regression analyses suggest that cultural distance, country risk, demand potential and competitive intensity substantially influence the MNO international entry mode choices. These factors are complemented by the embeddedness of entries into the overall internationalisation patterns of MNOs and by the MNO foreign market entry timing. Geographic proximity and economy size, as well as five control variables did not significantly affect the MNOs' cross-border entry mode.