Inventory, Taxonomy and Assessment of Methods for International Market Selection

Papadopoulos, Nicolas; Denis, Jean-Emile

doi:10.1108/eb008357

Cited by 143 publications

(116 citation statements)

References 26 publications

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“…A careful market selection involves analysing strategic needs and orientation of the firm beforehand. Detailed operations in foreign markets have to be determined after the company has chosen which foreign market to enter (Kumar, Stam & Joachimsthaler, 1994;Papadopoulos, 1988). The operations in the market depend on the firm's choice of foreign entry mode.…”

Section: Introductionmentioning

confidence: 99%

Financial Performance of Entry Mode Decisions: Effects of Control in an Internationalization Context

Marie

Ulrich

Boyd

et al. 2012

IJBM

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Based on a survey of 170 Danish SMEs the paper examines influences on entry mode choices and the financial outcome of these decisions. The main research objectives are divided into two steps:Step 1: To determine the factors influencing the choice of foreign entry modes by Danish companies.Step 2: To determine the relationship between the choice of entry mode and export performance, measured in terms of financial outcome. Drawing from transaction cost theory the authors develop and test a model where different factors affect the level of control chosen by the parent company. This study contributes to the existing entry mode theory by integrating both steps into a theoretical framework that offers substantive explanation of the connection between independent entry mode variables, the choice of entry mode and the resulting export performance. Personal networks and interruption of international activities were the most significant factors for the choice of intermediate modes. The results also show that high control modes can positively affect the bottom line profit through higher market investments and better implementation of cross border strategies. Finally, further research suggestions and implications are provided for companies willing to invest more into foreign markets in order to achieve a higher degree of control and better financial results.

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Section: Introductionmentioning

confidence: 99%

Financial Performance of Entry Mode Decisions: Effects of Control in an Internationalization Context

Marie

Ulrich

Boyd

et al. 2012

IJBM

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“…Firms making IMS decisions usually follow systematic or unsystematic approaches (Andersen and Buvik, 2002;Papadopoulos and Denis, 1988). Systematic approaches see IMS as a rational response to, and a result of systematic research into market and country conditions (e.g., Brouthers and Nakos, 2005;Cavusgil et al, 2004;Douglas, 2011;Erramilli, 1991;O'Farrell and Wood, 1994).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

International market selection and export performance: a transaction cost analysis

Lin

Wei

2016

EJM

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Abstract:Purpose -Exporting firms are concerned with which foreign country to select and the performance consequences of this international market selection (IMS) decision. On the basis of transaction cost analysis (TCA), this paper proposes a conceptual framework that hypothesizes the relationship between transaction cost factors, IMS and export performance.Design/methodology/approach -We test the proposed framework with a database of Chinese manufacturing firms using regression models and controlling for possible endogeneity. The endogeneity issue may arise due to IMS being influenced by unobserved industrial/firm attributes.Findings -The results show that transaction cost factors are able to explain IMS. Furthermore, firms whose decisions have incorporated transaction cost factors perform significantly better than their rivals.Research limitations/implications -Understanding transaction costs helps decisionmakers formulate more efficient IMS strategy to achieve superior export performance. Future research on IMS may examine 'passive exporting', i.e. exporting initiated by overseas buyers, consider the role of institutional distance and use other approaches towards cultural distance-based IMS.Originality/value -This study adds a new theoretical underpinning for IMS by developing a framework based on TCA, thus broadens the applications of TCA into IMS. Our empirical results support this extension.

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“…According to Papadopoulos and Denis (1988), there are two traditional approaches to the IMS: a systematic approach and a non-systematic approach (Andersen & Buvik, 2002).…”

Section: International Market Selectionmentioning

confidence: 99%

How Do Smaller Firms Select Foreign Markets?

Musso¹,

Francioni²

2012

IJMS

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The purpose of this paper was to analyze the internationalization of small and medium-sized enterprises (SMEs) in relation to the international market selection (IMS). To accomplish this, an investigation of the primary factors influencing SMEs' choice when selecting international marketswith a systematic approach way was conducted. In addition we sought to understand whether there was a relationship between the systematic approach in IMS and the characteristics of SMEs. Results revealed that the majority of SMEs adopt a non-systematic IMS. However, in the case of SMEs following a systematic approach to IMS, the study pointed out that SMEs are influenced by firm-specific and host country factors, but not by entry barriers like geographic and cultural distance. In addition, results illustrated the existence of a relationship between systematic IMS and firm size.

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Inventory, Taxonomy and Assessment of Methods for International Market Selection

Cited by 143 publications

References 26 publications

Financial Performance of Entry Mode Decisions: Effects of Control in an Internationalization Context

Financial Performance of Entry Mode Decisions: Effects of Control in an Internationalization Context

International market selection and export performance: a transaction cost analysis

How Do Smaller Firms Select Foreign Markets?

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