Impact of International Market Entry Strategies on the Business Success of Thai SMEs

Abstract

This study investigates the impact of international market entry strategies on the business
success of Thai small and medium-sized enterprises (SMEs). With the increasing globalization
of markets, SMEs must carefully select entry modes that align with their resources, capabilities,
and strategic objectives to achieve sustainable international growth. A quantitative approach
was employed, collecting data from 400 Thai SMEs across manufacturing, food and beverage,
consumer products, and service sectors. The study examines four primary entry modes:
exporting, joint ventures, wholly-owned subsidiaries, and franchising/licensing, and their
effects on multiple dimensions of business success, including financial performance, market
share, brand recognition, and customer satisfaction. The findings reveal that exporting and joint
ventures significantly enhance financial performance and market share, while wholly-owned
subsidiaries strongly contribute to brand recognition. Franchising and licensing positively
influence customer satisfaction, albeit to a lesser extent. Moreover, managerial experience and
network ties were found to strengthen the relationship between entry mode strategy and
business success. The study offers practical insights for Thai SMEs and policymakers to
optimize entry mode selection and strategic planning in global markets, contributing to the
theoretical literature on SME internationalization.