The authors examine the influence of the firm's technology and marketing pr
ofile on foreign market entry mode by testing hypotheses based on data from
105 firms in four European countries. Four technology and marketing variab
les were the most important: (1) the firm's generic marketing strategy-mark
et concentration versus diversification, (2) demand uncertainty-the positio
n in the life cycle of the firm 's principal product, (3) transaction costs
-transaction uncertainty and research and development, and (4) value added-
product patents. The authors suggest ways managers may be assisted in their
foreign market entry decisions on the basis of their firms' technology and
marketing profile.