Foreign market entry strategies for Australian and Singaporean SMES: Findings of a two country comparative study

This study examines the market entry strategies for small to medium enterprise (SMEs) exporters from Australia and Singapore. Its aim war to examine the relationship between the independent influence of factors identified in previous literature on the choice of an entry made between Australian and Singaporean SMEs, and their success in foreign markers. This study developed a generalised theoretical argument applicable to the international environment, and then tested the arguments with a sample of both Australian and Singaporean SMEs. A telephone and fax survey was undertaken of a random sample of 660 SMEs - 320 firms were drawn from the Austrade Australian Exports Directory (1995) and 340 firms from the Singapore Trade Development Board Singapore Exporters Directory (1995). A final usable sample of 104 usable questionnaires were received yielding a response rate of 25%. The results suggest a significant relationship exists between market entry mode and success. Licensing, franchising, acquisition and wholly-owned subsidiaries were more closely associated with successful firms than other forms of entry mode. Furthermore, Singaporean firms were more Likely to make use of such strategies than their Australian counterparts. Singaporean SMEs were also found to me significantly more internationalised than Australian firms. The study also highlights the importance of various factors influencing SME choice of market entry mode.