Change of Foreign Operation Method: Impetus and Switching Costs

Torben Pedersen, Bent Petersen, Gabriel R. G. Benito

    Research output: Working paperResearch

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    Abstract

    This paper explores what factors motivate exporters to change their foreign market servicing mode from using independent distributors and agents to setting up their own local sales organization, and what factors impede such changes (switching costs). Using data from a sample of 214 Danish exporters, of which 32 had changed their foreign operation method between 1992 and 1997, the analysis shows that switching cost factors are indeed of particular importance in order to explain the incidence of such changes.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherThe Link Program
    Number of pages28
    Publication statusPublished - 2000
    SeriesLINK Working Paper
    Number2000-25

    Cite this

    Pedersen, T., Petersen, B., & Benito, G. R. G. (2000). Change of Foreign Operation Method: Impetus and Switching Costs. Frederiksberg: The Link Program. LINK Working Paper, No. 2000-25