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Literature Review: Cultural Distance and Entry Mode
Globalization has opened new business avenues for organizations through the means of internationalization of the business. The organizations, in order to survive and sustain in global competition, adopt the route of international expansion. Internationalization has become a key facilitating factor for organization to grow their business and there are several reasons which encourage an organization to enter international market; low growth or stagnancy in home market, enhancing global market, exploring attractive foreign markets or to counter global competition by expanding operations.
Research questions that will be utilized under the research study are:
• What all options of international market entry modes are available for the small and large companies?
• How culture distances influence the choice of international market entry mode?
• How culture distance and business entry mode in foreign market influence the performance of business in international market?
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