Exporting represents an entry mode into international markets that is less risky than more direct strategies, therefore, it particularly fits SMEs (small-medium enterprises) that generally have a few resources to invest. In the case of emerging markets because of the high psychic distance, SMEs tend to rely on their distributors for the business operations in the new market. However, even if this type of intermediary allows the access to the foreign distribution channel that is particularly complex in countries such as China, it can limit the control of the market and in some cases, the product expansion. Based on a qualitative research consisting of interviews and secondary data, we will present two original case studies of Italian firms operating in the Chinese market. It will be shown that in emerging markets, since distributors do not really analyze and know consumer expectations and behaviors, they may represent a barrier in the knowledge accumulation of foreign products in the new market. Managerial implications will be discussed on the extent to which SMEs are not able to replicate marketing strategies used in other countries, but they should define a clear strategy that involves their distributors in the process of knowledge accumulation and brand value creation in the foreign market.

• Francesca Checchinato(Ca’ Foscari University of Venice)
• Lala Hu(Ca’ Foscari University of Venice)
• Tiziano Vescovi(Ca’ Foscari University of Venice)