Factors influencing selection of foreign market entry mode: a case of SMEs in Tanzania

This study intended to examine the factors influencing Selection of Foreign Market Entry Mode a case of SMEs s in Tanzania. The Methodology and approach which used in the study was exploratory research through purposive sampling as a technique focusing only (SMEs) who engaged in exporting the products in the foreign market by selecting appropriate foreign market entry modes. Data were collected through questionnaires from sampled population of 50 respondents. Data were collected, verified, compiled and analyzed using statistical package for social sciences (SPSS) program version 16.0 and results were presented in form of simple frequency tables for easy of interpretation. Findings from the research showed that Tanzania has not yet involved much in the international business, by considering the influencing factors while selecting a suitable foreign market entry mode. The Government through Ministry of industry, trade and marketing and TANTRADE should develop and maintain a centralized database for all Local SMEs. It should also provide sustainable financial support, trainings and promotions to the local SMEs so as to make them capable of networking for enhancing internationalization process that enabled them to penetrate into the international market. This study aimed at contributing knowledge of the SMEs to consider the internal and external factors that influence the selection of foreign market entry modes and the ways to overcome those challenges that face SMEs in foreign market.