Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes

TLDR

Digitalization and deeper market integration are enabling firms to adopt non‑traditional entry modes—such as capital access, innovation outposts, virtual presence, and managed ecosystems—that emphasize embeddedness rather than resource commitment and control, a dimension largely overlooked in prior studies. The study investigates the attributes, antecedents, and strategic implications of these non‑traditional modes, arguing for a broader, theoretically enriched view of international entry activities. The authors categorize non‑traditional entry modes into four types—capital access, innovation outposts, virtual presence, and managed ecosystems—to guide future research.

Abstract

Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional modes are encapsulated by the extent of embeddedness required for exploring new and/or exploiting existing resources. In particular, we draw attention to four such categories of non-traditional entry modes the literature has touched on, i.e., capital access, innovation outposts, virtual presence, and the managed ecosystem. We explore the key attributes, antecedents, and strategic implications of these modes. Our paper highlights the need for enriching current entry mode research by considering a broader range of entry mode activities available to firms as well as employing new theoretical perspectives to understand the complex phenomena of internationalization.