Market entry modes and channels of distribution in the UK machine tool industry

Abstract

Explores explanations for the continuance of agents or distributors and sales subsidiaries as international market entry and development modes and channels of distribution in the machine tool industry in the UK, and for entry mode evolution. Data were collected by in‐depth interviews with machine tool importers, interpreted qualitatively and related to conventional theoretical approaches. Results reveal, on the one hand, the progression of agents and distributors through acquisition to create foreign‐owned sales subsidiaries, and, on the other, regression back to the agency form. They also reveal a long‐standing persistence of a single channel of distribution.