Internal new ventures are the preferred entry mode when the industry to be entered is well-established and incumbent companies enjoy significant protection from barriers to entry.

Question

Quizplus · Accepted Answer

Internal new ventures are preferred entry mode when the industry to be entered is emerging and uncertainty is high. When the industry to be entered is well-established and incumbent companies enjoy significant protection, external entry modes such as acquisitions or alliances may be preferred.

Internal New Ventures Are the Preferred Entry Mode When the Industry