International market entry by US Internet firms: An empirical analysis of country risk, national culture, and market size

Internet firms face somewhat unique challenges when expanding abroad. On what basis do U.S. Internetfirms choose the international markets they enter? The authors posit that international market entry decisions are based on balancing perceived risks and returns inherent in a foreign target market. Drawing on a sample of almost 7,000 country entry decisions by 179 U.S. Internet firms, they find that country risk, cultural distance, and uncertainty avoidance reduce the likelihood of international market entry, whereas individualism and masculinity increase it. International market size, however moderates these relationships by weakening the negative effects, while strengthening the positive effects.