Revisiting the CAGE Model: An Application for Entry Mode Choices in Intra-African Internationalization

This paper revisits the CAGE model to examine how distance dimensions influence SMEs' entry mode choices in intra-African expansion. Based on a study of Moroccan SMEs in Sub-Saharan Africa, our findings reveal that: (1) a multidimensional approach enhances understanding, as firms assess multiple distance factors simultaneously; (2) cultural and geographical distance drive SMEs toward low-commitment modes like exporting through distributors to reduce adaptation costs; (3) economic and administrative distance jointly influence decisions, as firms weigh regulatory constraints against market potential before investing; and (4) regional economic integration shapes market entry, with firms establishing subsidiaries as “regional hubs” to facilitate broader expansion. These insights refine the CAGE model by capturing the complexities of South-South internationalization, emphasizing the interplay of distance dimensions in SMEs' strategic choices.