India IT Inc going global: Choice of entry mode strategy

Abstract

International markets have changed dramatically during the last decade. Despite this, there exist no concrete theories on how Indian IT industries enter new markets, and their choice of entry mode. This study seeks to advance the state of our theoretical as well as empirical understanding of the determinants of entry mode choice and internationalization performance of Indian IT SME global ventures. The suggested model is based upon concepts of prior theories on internationalization. Proposed paper develops an alternative model for Indian industry internationalization focusing on the role of IT Company's strength potential advantage, the internationalization risk factors and the use of company strength potentials(CSP) know-how for predicting entry mode choice. Propositions were created to test the validity of the model and the presumed entry mode decision. The theoretical and empirical cognitions drawn from this review are then used as the basis for practical implementations for industry internationalization. Empirical results based on a survey of Indian IT companies support the combined relevance of their factors on choice of market entry mode in international market. Finally the conclusions are presented to summarize the work, and some general suggestions for future research.