Literature Review and Hypothesis Development Studies relating to firm expansion into global markets have received increasing attention at both the empirical and conceptual levels. Numerous works and conceptual studies have been presented outlining the company's choice on how to establish the internationalization procedure Whitelock (2002) and Andersen (1997). In previous studies related to strategic management and international business, much has been investigated on the performance inference of global diversification strategies. However, there is less work done on inferring the performance of globalization strategies related to entrepreneurship and business-related literature. It has been empirically tested and supported by several researchers that better corporate performance is correlated with a better level of global diversification, for example Daniels and Bracker (1989), Tallman and Li (1996), Grant (1987) and Kim, Hwang and Burgers ( 1993). Barringer and Greening (1998) argued that one of the most important paths for firm growth is geographic expansion. This type of growth strategy is relatively very important for SMEs whose scope has been limited geographically. According to Zahra, Ireland and Hitt (2000) the increased volume of growth and production of firms can be achieved by expanding the customer base by entering new markets. Furthermore, in different geographical areas of the world, different conditions prevail in the markets. Companies can earn high rates of return on their assets and take advantage of market imperfection by leveraging their assets in different markets. SMEs will need to expand beyond cross-border markets to gain better opportunities and better rates of return on their assets. Milinaric (2010) focused on......half of the article......and the hypotheses were developed through an extensive literature review.H1: Location-specific factors are positively correlated with performance of the firm in the foreign market.H2: The specific factors of the firm are positively correlated with the performance of the firm in the foreign market.H3: The specific factors of the owner are positively correlated with the performance of the firm in the foreign market.Theoretical frameworkModel FLO-FEMeasurementBefore conducting regression analyses, data reduction for factor analysis was performed. Company-specific factors, position-specific factors, and owner-specific factors were measured on a 5-point Liker scale. The ranking starts from “1= strongly disagree” to “5= strongly agree. Responses to questions about foreign entry performance ranged from “1=Much worse” to “5=Much better.” To determine the internal reliability of the variables, Cronbach's alpha was performed.