Entry Mode Choice of Smes in Central and Eastern Europe‪.‬

The opening of markets to international competition in Central and Eastern Europe (CEE) has created the potential for western firm expansion and investment. Uhlenbruck and De Castro (2000, p. 382) state that "the transitional economies of Central and Eastern Europe offer fascinating grounds on which to refine and test existing management theories." Since the transition process began, scholars have tended to focus on the activities of large western multinational enterprises (MNE) (e.g., Meyer, 2001; Brouthers, Brouthers, & Werner, 1999; Marinov & Marinova, 1999). However, McDougall and Oviatt (1997, p. 300) suggest that examining the activities of small and medium-sized enterprises (SMEs) in the transitional economies of CEE " ... clearly represents a fruitful area of study for the field's pioneers." The internationalization process of SMEs and a firm's decision to sell its products in international markets have been the subject of intense academic attention and research in the past 30 years (e.g., Crick & Jones, 2000; Gankema, Snuit, & Van Dijken, 1997; McDougall & Oviatt, 1996). Several theories and conceptual frameworks have been developed outlining a company's decision to initiate the internationalization process (Wolff & Pett, 2000; Gankema, Snuit, & Van Dijken, 1997).