Abstract
Selecting an entry mode for a new organization or expansion is of vital importance to a decision maker, as many potential qualitative and quantitative criteria are to be considered. Entry mode decision is the most critical decision in international expansion; it can affect the performance of the company in the future. This paper solves an entry mode selection problem using PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluation) and GAIA (Geometrical Analysis for Interactive Aid) method which is an effective multi-criteria decision-making (MCDM) tool and is used to deal with complex problems. In order to follow this technique, an investigation has been operated for comparing 5 entry modes such us exporting, franchising, licensing, joint venture and foreign direct investment (FDI) according to 15 criteria. The results, obtained by multi- criteria evaluation, clearly show that this method of entry mode selection for an Ivorian company named FILTISAC is successful and applicable. It is empirically determined that joint venture is the most suitable entry mode for company expansion amongst those selected.
Highlights
Business is the biggest activity in the world today and has become more important for countries and companies
Choosing a new market for a new organization is of vital importance to a decision maker
Entry mode decision is the most critical decision in international expansion; it can affect the performance of the company in the future, Ekeledo and Sivakumar [5]
Summary
Business is the biggest activity in the world today and has become more important for countries and companies. The number of companies operating internationally is increasing constantly Companies expand their activities overseas around the world in order to take advantage of expanded markets and resources that exist across borders. According to Papadopoulos & Denis [1], companies that want to expand into foreign markets are faced with the challenge of choosing the best structural arrangements and these obstacles are becoming crucial in the companies’ daily work. One of these challenges is selecting foreign markets and their entry mode. Selecting the appropriate foreign markets for expansion is highly significant as well as key element of success or failure for the company’s future prospects
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