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Although the benefits of strategic alliances are well documented, whether strategic alliances can be a viable entry strategy option for small and medium‐size enterprises (SMEs) to successfully penetrate markets held by major incumbent suppliers is less clear. In this paper, strategic alliances are shown to be an effective entry‐cum‐deterrence strategy for SMEs to successfully penetrate markets that are well established and dominated by major corporations. In addition, the conditions under which SMEs can use strategic alliances as an entry strategy without restricting themselves to target only those markets ignored by bigger firms are identified. In terms of methodology, this paper follows a deductive approach – one based on game theory, to examine explicitly the reactions of bigger firms to the entry of SMEs into their markets, specifically taking into account the resource limitations faced by SMEs. To verify that the theoretical arguments presented are consistent with practice, two cases of the use of strategic alliances by SMEs as an entry strategy to penetrate markets dominated by major corporations are examined. The practices and experiences of these SMEs were found to be consistent with the theoretical arguments presented here.

This study aims to investigate whether the contract manufacturer (CM) should take the first-mover advantage in the end-product without supplying core components to the original equipment manufacturer (OEM) immediately, or should fully squeeze the benefit of the learning effect through an amplified production quantity by letting the OEM enter the end-product market early.

The authors propose a two-period model for a supply chain consisting of a CM and an OEM where the CM has four alternative entry strategies concerning it competition to the OEM in the end-product market. For each strategy, the authors derive the equilibrium solutions of the two firms using a backward approach. Comparison leads to the CM’s final choices among the four strategies.

For both CM and OEM, the monopoly and the first-entry strategies will be dominated by either the post-entry or the simultaneous-entry strategy, and thus, their preferred strategy is chosen from the latter two. Regarding the two firms choices between the post- and simultaneous-entry strategy, the CM prefers the post-entry strategy when the OEMs brand premium is at a moderate level, whereas the OEM prefers the post-entry strategy when its brand premium is low, and the learning effect can amplify the interval for the CMs adopting the post-entry strategy as well as changes the interval for the OEMs preference related to the two strategies.

This paper is the first one to explore the optimal strategy for a CM to maximize its profit in a co-opetitive supply chain situation with a CM and an OEM. The authors believe that our paper contributes to both literature and the market.

Farmers often decide simultaneously on crop production or input use without knowing other farmers' decisions. Anticipating the behavior of other farmers can increase financial performance. This paper investigates the role of other famers' behaviors and other contextual factors in farmers' simultaneous production decisions.

Market entry games are a common method for investigating simultaneous production decisions. However, so far they have been conducted with abstract tasks and by untrained subjects. The authors extend market entry games by using three real contexts: pesticide use, animal welfare and wheat production, in an incentivized framed field experiment with 323 German farmers.

The authors find that farmers take different decisions under identical incentive structures for the three contexts. While context plays a major role in their decisions, their expectations about the behavior of other farmers have little influence on their decision.

The paper offers new insights into the decision-making behavior of farmers. A better understanding of how farmers anticipate the behavior of other farmers in their production decisions can improve both the performance of individual farms and the allocational efficiency of agricultural and food markets.

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies. Specifically, we investigate how home market and global industry contexts influence market-entry strategies, and how psychic distance influences initial then subsequent market-entry choice decisions.

Using Atlas.ti7 software, this paper adopts a qualitative, multi-case analysis of ten software INVs based in New Zealand. Thematic coding of interview and secondary data revealed three core processes: pre-entry considerations, market selection criteria and post-entry evaluation, across the stages of initial and subsequent market entry.

In the context of the global software industry, the key driver of proactive market entry by INVs from small, open economies is market size rather than psychic distance. During the process of market expansion, firms encounter the psychic distance paradox (PDP). A second paradox arises when, despite experiential learning, managerial perceptions of psychic distance increase, making entry into more distant markets less, rather than more, likely and reactive, rather than proactive.

This paper addresses contextual differences in software versus more traditional sectors, and the influence of psychic distance on market entry rather than outcomes. Specifically, extending our understanding of the PDP, we find perceptual psychic and cultural distance ignored as criteria for initial market-entry decisions, and initial positive attitudes toward risk-taking become less apparent during subsequent entries.

A phenomenon which characterised the late 1970s was the proclivity of technology oriented companies to enter consumer markets. For example, in the past five years the traditional boundaries between industrial and consumer markets have been diffused, as many electronic component manufacturers attempted to extend their technical and manufacturing strengths to design and market electronic consumer durables such as watches, calculators and video games. Oak Industries, the housing and appliance switches and control manufacturer, made a strong commitment to enter the pay‐TV market, the potentially lucrative business of selling television viewers a special package of programmes beamed over the air rather than transmitted through a cable.

Studies consistently find regions dense in concentrations of similar firms to be fecund sources of new firms of the same kind. This pattern persists even in industries with negative returns to geographic concentration. Why do these patterns persist? On the one hand, social networks may constrain entrepreneurs’ opportunities, making it difficult to mobilize resources in more attractive locations. On the other hand, nascent entrepreneurs may systematically misperceive opportunities in such a way as to lead them to continue founding attempts in overcrowded regions. To distinguish between these two processes, we analyze a unique set of data on television stations that contains information on both attempts to start new stations, as well as successful foundings. Our exploratory analysis suggests that nascent entrepreneurs do consistently misinterpret information related to population dynamics. These patterns could easily contribute both to industrial agglomeration and to the fragility of Red Queen dynamics. We discuss the implications of these results both for future research and for public policy.

The purpose of this paper is to evaluate the emerging field of experimental research on entrepreneurship to better understand its development and potential.

A systematic, evidence-based literature review was applied, resulting in a sample of 47 articles having used experiments in entrepreneurship research so far. The papers are analyzed according to their topic, methods, and research design, revealing insight into their limitations and prospective contributions.

The paper discusses the potential and disadvantages of experimental methods while arguing for experiments as the method of choice for answering causality questions. This study finds a persistent increase in experimental entrepreneurship research since its introduction in 1990.

The study provides research from the field of entrepreneurship with future directions, with potential research areas and an orientation for those interested in conducting experiments.

Experiments are employed in a variety of research areas and have become more and more popular in the field of entrepreneurship. No study has analyzed the experimental studies in entrepreneurship. This paper contributes by providing an overview of the field, reflecting and discussing the outcomes while characterizing the methods employed.

To address three issues of survey-based methods (i.e. the absence of behaviors, the reference inequivalence, and the lack of cross-cultural interaction), the purpose of this paper is to explore the potential of using the behavioral experiment method to collect cross-cultural data as well as the possibility of measuring culture with the experimental data. Moreover, challenges to this method and possible solutions are elaborated for intriguing further discussion on the use of behavioral experiments in international business/international management (IB/IM) research.

This paper illustrates the merits and downside of the proposed method with an ultimate-game experiment conducted in a behavioral laboratory. The procedure of designing, implementing, and analyzing the behavioral experiment is delineated in detail.

The exploratory findings show that the ultimate-game experiment may observe participants’ behaviors with comparable references and allow for cross-cultural interaction. The findings also suggest that the fairness-related cultural value may be calibrated with the horizontal and vertical convergence of cross-cultural behaviors (i.e. people’s deed), and this calibration may be strengthened by incorporating complementary methods such as a background survey to include people’s words.

The behavioral experiment method illustrated and discussed in this study contributes to the IB/IM literature by addressing three methodological issues that are not widely recognized in the IB/IM literature.

We develop an experimental setting where the assumptions and predictions of the garbage can model can be tested. A careful reconstruction of the original simulation model let us select parameters that leave room for potential variations in individual behavior. Our experimental design replicates these parameters and thereby facilitates comparison of human behavior with the original model. We find that the majority strategy of human subjects is consistent with the original model, but exhibits some behavioral diversity. Human subjects exhibit fluid diverse behaviors that improve coordination in the face of uncertainty, but hinder collective learning that can improve group performance.