International Market Selection Research Articles

International market, network, and opportunity selection: A systematic review of empirical research, integrative framework, and comprehensive research agenda

International Market Selection (IMS) is a strategic and complex decision by which firms choose the markets in which to be present. Despite the undisputed academic and managerial relevance of IMS, extant reviews do not include the most recent empirical literature, do not consider different perspectives linked to alternative units of analysis and research domains, and ignore important changes in the international business environment. This research aims to carry out a holistic and systematic assessment of recent IMS empirical research, propose an IMS framework, and provide directions for future research. We contribute to the international business and management literature by updating and upgrading our understanding of IMS, by expanding the IMS conceptualization, proposing an integrative conceptual framework, and developing research propositions, and by suggesting a comprehensive, updated, and radically original research agenda.

Footloose and fancy-free in FinTech? Internationalization strategies of born regional and born global firms in the European financial service sector

AbstractDue to economic globalization and technological advancements, businesses are increasingly required to navigate complex international markets. One type of firm that has emerged in response to these trends is the born global, which initiates foreign activities almost from the very start. While these startups expand their reach by pursuing pro-active internationalization strategies, it is unclear whether startups creating the FinTech revolution also belong to this category. This study investigates five key components of the internationalization strategies of European FinTech startups: the speed and scope of internationalization, the drivers of internationalization, international market selection, the mode of market entry, and the challenges involved in internationalization. While born globals use a systematic approach to international market selection and entry, European FinTechs use a quasi-systematic and opportunistic approach to searching and seizing their geographical markets. Their common approach includes quickly going beyond their home base to adjacent markets, followed by gradual experimentation and substantive growth in their home region, and becoming born-regional firms (with some evolving into born-global firms later).

International Market Selection Based on Integrated MCDM Methods: A Case Study of Iron and Steel Sector

International Market Selection (IMS) is crucial for companies seeking growth and expansion beyond their domestic boundaries. IMS is a strategic decision that requires careful evaluation of several factors to minimize risks and achieve long-term success in international markets. Accordingly, this study aims to find out optimal market alternatives for exporter companies operated in iron and steel sector. A total of twenty-three market alternatives were evaluated based on ten criteria. The alternatives and criteria were determined by literature review and expert opinions. The weight of criteria was calculated by the FUCOM and LOPCOW methods. Once the weight of criteria was determined, the alternatives were ranked using the SPOTIS, RSMVC, CoCoSo and Borda Count methods. The results showed that balance of trade and GDP were the most and least important criteria, respectively. Overall results revealed that Canada, the UAE, Germany, Japan and Malaysia were the best market alternatives, while Venezuela, Mexico, Peru, Colombia and the UK were the worst market alternatives for iron and steel exporter companies. Additionally, the sensitivity analysis was carried out to observe the robustness of the results.

Micro, Small, and Medium Enterprises’ Cross-Border Business Strategies

This paper explores the operational strategies of cross-border micro, small, and medium enterprises (MSMEs). Against the backdrop of globalization and digitalization, cross-border trade has become one of the important pathways for many MSMEs to achieve growth and competitive advantage. Firstly, the paper outlines the concept and characteristics of cross-border MSMEs, as well as the analysis of their operational environment in the context of globalization, including political, economic, social, technological, environmental, and legal factors. Secondly, the paper proposes operational strategies for cross-border MSMEs, including international market selection and positioning, cross-border marketing strategies, supply chain management, cross-border financial management, and cross-border risk management. Finally, the paper summarizes the importance of effectively implementing these strategies for cross-border MSMEs to seize international market opportunities, reduce operational risks, and enhance competitiveness and profitability.

International market selection for livestock producers: hierarchical modeling for prioritizing economic stability, logistics, and culture

This study presents a decision-making framework for Brazilian livestock producers seeking to expand into European or Asian markets, aligning with EU and Islamic regulations. Key Performance Indicators (KPIs) were collected for the top five pre-selected markets, namely Germany, Belgium, France, Emirates, and Turkey. The data was collected from the World Bank and OECD from 2020 to 2023. The Analytic Hierarchy Process (AHP) was used to determine a set of weights for criteria including economic stability, logistics, culture, and market appeal reflecting a large producer's priorities. Results highlight the relevance of economic stability and GDP growth for International Market Selection (IMS), while logistics and cultural similarity received relatively lower importance. This study demonstrates the practicality of the AHP method in assisting decision-making for international market selection in the livestock industry, offering valuable insights to producers seeking expansion opportunities.

Artificial intelligence for international business: Its use, challenges, and suggestions for future research and practice

AbstractThe emergence of artificial intelligence (AI) has transformed global business, aiding operational efficiency and innovation. It utilizes machine learning and big data analytics, driving predictive market trends and strategic decision‐making. However, despite the rising discussion and accessibility of AI tools, understanding its impact on international business remains limited. This article explores AI's potential in international business strategies, practices, and activities. To address this aim, we reviewed 37 articles in the existing literature to critically explore AI within the context of international business. More specifically, we explored how AI can be applied to innovation approaches in international business, international market selection, entry modes, foreign exchange, international human resource management, international supply chains, managing across cultures, and more topics. AI has necessitated changes in workplace configurations and the need for organizational and employee adjustments in response to this technology. As a result of the foregoing issues on AI integration within international business, our analysis provided an exploratory discussion around its use, challenges, managerial implications, and suggested areas requiring future studies.

Exploring International Market Selection for Indonesian Tuna

Exploring International Market Selection for Indonesian Tuna

A decision model for international market selection by entrepreneurs: a cross-country investigation

PurposeThis study aims to examine the international market selection process of entrepreneurs operating internationally.Design/methodology/approachFour small and medium-sized comparative and rich-information case studies were purposefully selected from among Australian and Arabian firms. Data were collected via in-depth personal interviews, follow-up interviews and questionnaire instrument.FindingsThe results revealed that entrepreneurs used a four-stage systematic decision-making process to attain profitable foreign market choices. The decision process was influenced by cognitive boundaries as entrepreneurs relied on the availability experiential, anchoring and adjustment heuristic.Research limitations/implicationsThe research’s findings and the proposed decision model will, significantly, assist entrepreneurs, willing to expand internationally, in enhancing their decision-making to attain profitable foreign market choices. Further, it provides benefits to foreign investment policymakers in host countries by assisting them to attract more inward foreign direct investments, and, accordingly, enhance the economic and social development movement in their countries.Originality/valueThis study provides a significant theoretical contribution to the literature on the internationalization process of entrepreneurs and small- and medium-sized enterprises through developing a decision model for selecting and entering foreign markets by entrepreneurs in a cross-country context. Further, the study provides significant methodological contributions with regard to the effectiveness of the qualitative case study method in capturing elements of the foreign market selection process.

An integrated model for international market and entry mode selections for Chinese contractors

PurposeGiven their interrelationship, international market selection (IMS) and entry mode selection (EMS) must be considered jointly if an optimal entry strategy is to be realized. However, researchers in the field of international construction have the tendency to consider IMS and EMS independently or sequentially. Therefore, this paper aims to explore a holistic framework that can accommodate IMS and EMS concurrently and test it using empirical data.Design/methodology/approachhis study includes theoretical and empirical research. In theoretical part, an integrated decision model of IMS and EMS is proposed adopting literature review and theoretical derivation, then hypotheses are developed for the impact of decision-making factors. In the latter part, the IMS and EMS of 54 Chinese contractors in 67 countries were investigated, empirical data are collected according to hypotheses, an ordinal logistic regression model is established for statistics analysis. Finally, findings are drawn by comparing literature-based hypotheses with data-based analysis results.FindingsResults show that empirical data fit theoretical model well. Findings are: IMS and EMS can be integrated into a holistic decision-making framework when be properly sequenced. When IMS and EMS are determined simultaneously, the decision can benefit from a sharing of common information. And the roles of at least 13 common factors are empirically demonstrated in this study.Research limitations/implicationsThe integrated decision sequence proposed in this study is applicable for a specific market, and cannot compare multiple alternative markets directly. The decision-making factors identified in this paper do not cover the enterprise strategic objectives and some other factors. Empirical data and some theoretical assumptions are based on the international market entry strategy of Chinese contractors. Therefore, the conclusions may not be completely applicable to global contractors though have certain reference value.Originality/valueBased on the idea of holistic decision-making of IMS and EMS, this study proposes an international market entry strategy (IMES) sequence and an explicit model for determinants, then tests them with empirical data. This paper provides a new idea to manage IMS and EMS concurrently, which can improve the efficiency of IMES decision-making and avoid missing optimal alternatives. This study paves the way for a practical model and provides reference for contractors' international market entry strategy.

Comparing International Market Selection Methods Using Export Potential Values for South Africa

ABSTRACT Resources for export promotion are scarce, and incorrect market selection can be costly. In the literature, the gravity model, International Trade Center’s Export Potential Map, and decision support model all estimate export potential values. Although the same concept is measured, different methodologies are used. This study aimed to compare the rankings assigned to the export potential values by each approach. The results indicated that 45% of the rankings differed by more than five places, while one-third were ranked in the top 10 of only one approach. Given these inconsistencies, alternative approaches for prioritization after identifying export opportunities are recommended.

The internationalisation of South African enterprises: A focus on international market selection

Orientation: The selection of attractive foreign markets has been identified as one of the most important decisions in an enterprise’s internationalisation process.Research purpose: The primary objective of this study was to determine which international market selection (IMS) processes, if any, South African enterprises follow when selecting international markets for expansion.Motivation for the study: Whilst a significant effort has been made to close the gap in knowledge regarding the IMS processes followed by enterprises from emerging markets, little is known about the IMS processes of South African enterprises.Research design, approach and method: This qualitative descriptive study collected data through semistructured interviews conducted with senior managers who have been or are involved in IMS at 12 South African enterprises. The collected data was analysed using thematic analysis.Main findings: The study found that the majority of enterprises who participated in this study use a systematic, four-step IMS process. However, the process is more flexible than that proposed by some theoretical models. In particular, the selection criteria used when analysing a market are considered flexibly and, in some cases, even in parallel instead of sequentially as proposed by some models.Practical/managerial implications: Research shows that mistakes related to the inappropriate and inadequate evaluation of markets are almost always more expensive than the costs associated with conducting a systematic IMS. Therefore, this research provides guidelines to enterprises on how to conduct such an IMS.Contribution/value-add: This study contributes to the extant IMS literature by broadening our understanding of the IMS processes followed by South African enterprises and in doing so, answers the call to close the emerging market knowledge gap.

An Assessment of Market Dependency Risk in the International Student Industry

Literature suggests that the international student industry faces increasing risk, given the substantial dependence on a few source countries. Inbound international student mobility (ISM) data of leading higher education (HE) destination countries were examined, with China and India as the source countries. This study classifies Australia, Canada, and the USA as host countries with a high international student source country dependency risk; the UK as a host country with a moderate dependency risk. By exploring the issue from a dependency risk mitigation perspective, this study identifies an elaborate two-step market diversification approach involving international market selection and marketing strategy.

Institutional Factors Impacting on International Construction Market Selection: Evidence from Chinese Contractors

Institutions can be understood as the mechanism by which the rules societies operate under are formulated. As such, the international construction market is heavily affected by institutional factors. International market selection (IMS) is a fundamental decision that project contractors must make when entering the overseas arena. A variety of clues show that institutional factors have a complex impact on contractors’ IMS, but papers in this field tend to cover just one or two institutional factors or even ignore their role. Institutional factors exist in a multi-level social system, and the role of broader institutional factors in contractors’ IMS needs to be systematically explored. This study extensively collects institutional factors predicted to impact contractors’ IMS by literature review, selects 10 specific institutional factors from different perspectives, theoretically deduces their effects on contractor’s IMS, and takes international Chinese contractors’ IMS practice as the empirical research material and collects data for logistic regression analysis to test the assumptions. The results show that the IMS of contractors is affected by institutional factors from different levels and the effect of some factors on IMS must be weighted in a specific context. Specifically, IMSs of Chinese contractors are negatively affected by institutional distance but are not sensitive to the institutional environment. The results also confirm that if the host country and China have signed a trade agreement, belong to the same regional organization, or if China has provided foreign aid to a host country, Chinese contractors are more willing to choose the host market and central enterprises become more active in IMS than other firms. These findings can be expected to supplement IMS decision-making, with the empirical data presented affording an extension to the body of knowledge on contractors’ IMS process.

Decision-Making Process in Foreign Investment Choices

Abstract This exploratory investigation aims to develop a managerial decision model that assist international firms and investors in selecting the right valuable foreign country for their international operations. Two comparative and rich-information case studies were purposefully selected from among Arabian large firms. Additionally, six international investment decisions were investigated within these two cases and data were collected by in-depth interviews, follow-up interviews and questionnaire instrument. Within and cross-case analyses were undertaken in the current investigation. The findings demonstrated that a methodical and international experience-based strategic decision-making process was adopted to attain a profitable foreign country choice. The decision process comprised five critical managerial phases; that is, (1) analysis of internationalization drivers, (2) searching and development of location determinants and country alternatives, (3) obtaining adequate and related-information about potential countries, and, ultimately, assessment for these alternatives, (4) selection of a final beneficial foreign country choice, and, finally, (5) effective implementation of the selected country choice. The research findings provide theoretical and practical implications to the internationalization of firms as well as international investment. Further, it provides significant methodological contributions to international business research in relation to an effective multiple case study approach to capture elements of the international market selection process.

International market selection by small enterprises: Cognitive biases and heuristics in decision-making

International market selection by small enterprises: Cognitive biases and heuristics in decision-making

Analysis of the Internationalization Strategy of Cross-Border E-Commerce Enterprises: The Case of Alibaba Group

In recent years, the development of China’s e-commerce industry has been in full swing and has had an important impact on economic development. Taking Alibaba Group as an example, this paper firstly introduces the overview and development history of Alibaba Group, which is a leading e-commerce company; secondly, it analyzes Alibaba’s internationalization strategy from three aspects: international market selection strategy, international market entry strategy and international marketing strategy; it concludes that Alibaba adopts a diversification strategy in internationalization, and the location selection and entry mode of internationalization can be summarized as “dual-track”. It is concluded that Alibaba adopts a diversification strategy and its internationalization strategy can be summarized as a “dual-track system”; it expands abroad with e-commerce as its core in overseas acquisitions; and its organizational structure, human resources and business structure are adjusted in line with its internationalization development. Lastly, we propose some rationalization suggestions for China’s e-commerce enterprises in light of Alibaba Group’s successful experience in international development: strengthening brand building, optimizing organizational structure, strengthening talent introduction and retention, and enhancing core competitiveness, so as to promote China’s e-commerce enterprises’ international development strategies and march into the international market.

On building up a closer psychic distance as a fundamental ground of relationship between India and Korea: focusing on Jeonlanam-Do in Korea

The Uppsala model (Johanson and Wiedersheim-Paul, 1975) identifies cultural differences, market attractiveness, and core competence of nations or firms as the key factors affecting international market selection. Among these three factors, psychic distance caused by cultural differences is regarded as the most important factor. However, the psychic distance between India and Korea is not very close. The main objective of this paper is to examine the ways to boost economic relationships between India and Korea by building up a closer relationship of psychic distance. We suggest Jeonlanam-Do including Gwangju Metropolitan City (JDGC) in Korea as a stepping stone to make both countries' psychic distance closer as JD has several common grounds of intangible assets with India which includes its adherence to democracy, human rights and peace; the diverse food culture; and the religious zeal to Buddhism. We propose these common interests as a way to enhance the awareness of national brand 'India' in Korea which will attribute to a strategically developed economic relationship between Korea and India.

Foreign market entry knowledge and international performance: The mediating role of international market selection and network capability

While the literature emphasizes the importance of knowledge and foreign market knowledge for international performance, it is unclear about the intervening/mediating relationships. From a knowledge-based view and network approach, we posit that previous foreign market entry (FME) knowledge can be used in the selection of international markets and to enhance network capabilities and international performance. We test the relationships between these constructs in a sample of 140 Australian SMEs. We contribute to the international SME literature by explaining important mechanisms through which FME knowledge affects SMEs’ international performance. International market selection and network capability mediate its relationship with international performance.

Uluslararası Pazarlarda Hedef Pazar Seçimi Üzerine Bir Araştırma

Selecting a target market in a right and effective way, which is one of the very first steps of entering the international market, plays a significant role in achieving organization’s export goals and enhancing them. In this study, using conducting interviews, one organization in tower crane sector was examined in termsof its goals and strategies in international target market selection. The company, which prefers international target market research with secondary data due to its fast results, time and cost advantage, has determined that the commercial deficit in the market and the increase in imports are the target market selection criteria. As a result of the analysis, it was seen that the company identified the UK market as a single target market. Besides in this study, using secondary data, international target market selection has been done for tower crane. The UK, Arab Emirates and Belgium, which are among the three criteria in the analysis based on market size, import growth by year, the basic criteria of having a trade deficit in the country and logistics and tax advantage, were identified as the target markets. In addition, it has been examined in terms of its potential to be a target market in countries within only two criteria. According to market size and tradedeficit criteria, the Saudi Arabian and Swiss markets were also found to be suitable as target markets. As a result, the UK, Arab Emirates, Belgium, Saudi Arabia and Switzerland are the target markets in this study. Focusing on the sector of tower crane, secondary data analysis will make a significant contribution to otherorganizations in the same industry such that they can adapt the similar paths by entering the international market. Therefore, the study will contribute to those organizations to improve their export volumes and to achieve export-related goals as well as the growth and development of Turkey.

International market selection: a MABA based EDAS analysis framework

Research background: International market selection is an essential issue for big companies that supply food products. Different types of decision factors and different characteristics of different international markets have brought up a complicated decision-making problem for food supply companies. In order to select the most suitable and profitable market, food supply companies have to consider several qualitative and quantitative factors, including social, political, economic, and ecological aspects.
 Purpose of the article: In order to overcome international market selection issues, the current study develops a novel integrated decision-making tool.
 Methods: A novel decision-making model of market analysis is developed as an extended model of Market Attractiveness and Business Attractiveness (MABA) analysis based on the Multiple Attribute Decision Making (MADM). To improve the MABA analysis model, we combine the EDAS method with MABA analysis to empower decision-makers in food supply companies to evaluate several international markets and select the most profitable market for their products.
 Findings & value added: In this study, we first identified the most important and frequently used decision factors for market analysis problems within MABA analysis under two categories: market attractiveness and business attractiveness. To show the proposed methodology's applicability and feasibility, we perform a case study for a food supply company in Iran that supplies products to Middle East and Asian countries. In order to investigate the reliability of the obtained results, we perform a sensitivity analysis concerning the importance of involved decision factors. The proposed decision-making tool results suggest that the model can be used as a reliable tool for market analysis problems. To sum up the long-term value of the study, we have developed a novel decision-making tool using MABA analysis and the EDAS method. No study integrates any MCDM methods with MABA analysis to the best of our knowledge. Integration of EDAS method with MABA analysis empowers decision-makers in market selection division to use more systematic methods for evaluating several markets.