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The PSE model: entry into emerging markets
Author(s) -
Pehrsson Anders
Publication year - 2002
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.583
Subject(s) - emerging markets , industrial organization , business , barriers to entry , international market , competence (human resources) , marketing , economics , computer science , international trade , market structure , management , finance
This article presents a new international market entry model—the PSE model. The model comprises three interrelated components that reflect premises external and internal to the firm: perceived barriers to entry (P), strategy competence (S) and entry strategy (E). Propositions about the nature of the linkages between the model components are examined. The model and its linkages are illustrated using Ericsson's entry into the emerging market of mobile telephony systems in the United States. The application of the model enhances our understanding of entry into international emerging markets. Practical suggestions in the application of the model are presented. Copyright © 2002 John Wiley & Sons, Ltd.