International Market Reentry: A Review and Research Framework

Abstract

Firms may exit international markets because of various factors, such as changes in the market's environment, dissatisfaction, lack of achievement of objectives, or extreme competition. Exiting a foreign market permanently, however, may not always be the best decision. In some cases reentering the same market can be rewarding for firms vying for global expansion and growth. The authors present a knowledge utilization framework for international market reentry, along with an international market reentry matrix that encompasses host country attractiveness, risk, and firm resources and capabilities. The article qualitatively evaluates a sample of firms for their return to previously exited international markets and discusses the lessons learned from their experience.