The role of entrepreneurial orientation in overcoming known and unknown barriers to entry in foreign markets

Abstract

It is often recommended for multinational corporations (MNCs) to adopt an Entrepreneurial Orientation (EO) as this can be valuable for effective foreign entries. In this research, however, we assert that the role of EO in the success of foreign entries is contingent on the entry situation, especially the type of entry barrier the MNC is facing. In this study we look at two types of entry barriers, those that are known prior to entry and those that are unknown. Prior research has typically focused on known barriers, those that are expected prior to entry, such as cultural distance, economic distance or competition in the foreign market. The topic of unknown, unexpected barriers has been understudied. Our key contribution therefore is the study of both known vs. unknown barriers of entry as moderators to the EO-foreign entry success relationship.