The Incubator Concept as an Entry Mode option for SME’s

The aim of this article is to investigate the relevance of an alternative entry mode, the incubator concept. Such an alternative entry mode like the so-called incubator is increasingly being used as a shortcut or bridge to a distant market. In-depth qualitative research on a selected case (Kelsen Group selling butter cookies to India) reveals the reasoning behind the entry mode choice of a company entering an emergent market (India). The incubator option provides the opportunity for a company to bridge the ‘gap’ between a low-control entry mode (e.g. importer or distributor) and high-control entry mode (e.g. wholly owned sales subsidiary), without involving too high risks and still keep a reasonable level of control.