Modelling of international market selection process: a qualitative study of successful Australian international businesses

Abstract

The importance and need for systematically evaluating and selecting potential foreign markets has been stressed by many researchers, and several models for selecting international markets have been prescribed. If models are simplified pictures of reality, current IMSP models do not pass the test of reality. Further, there has been limited research carried out in Australia on this issue. Using grounded theory methodology, explores how a cross‐section of successful Australian international businesses select their international markets and develops a model based on the findings. The conclusions drawn are: international businesses follow a stepwise IMSP; the first stage of this two‐stage process is based on the evaluation of market size attractiveness which takes into consideration some macro‐ and micro‐economic variables along with some other macro level and firm related variables; and the second stage is based on the evaluation of a market’s structural attractiveness which takes into consideration some cost, structural compatibility, government policy variables, along with some firm related variables.

New Zealand’s perfect storm of entrepreneurship and economic development

“…De Martino et al (2006) used grounded theory to create a new conceptual framework on how internationalization impacts on social relationships of locally established firms. Rahman (2003) used the grounded approach in developing a model of how Australian businesses selected their international markets. Randall and Jaya (2006) used grounded theory in their examination of Russian managers.…”

Market and partner selection processes in international retail franchising

“…The international marketing literature highlights the importance of systematically evaluating and selecting potential foreign markets (Anderson and Strandskov, 1998;Brouthers and Nakos, 2005;Kumar et al, 1993;Rahman, 2003). The resulting process is deemed to be linear, logical, and non-recursive (Gillespie et al, 2007).…”

“…According to Kumar et al (1993), the process takes a three-stage approach: screening, identification, and selection. Rahman (2003) identifies how successful Australian international businesses select their international markets. A two-stage process emerged from this work based on the evaluation of market size attractiveness and market structural attractiveness.…”

Analysis of African Iron and Steel Market for Wuhan Iron and Steel Corporation (WISCO)’s Possible Entry: Preliminary Screening and Final Selection Statistical Scoring Model

“…Apart from the older studies summarized by Papadopoulos and Denis (1988, pp. 40-47) [2], firm-level market estimation methods include the studies of Ayal and Zif (1978) [9], Davidson (1983) [10], Cavusgil (1985) [11], Kumar et al (1993) [8], Hoffman (1997) [12], Andersen and Strandskov (1998) [13], Brewer (2000) [14], Andersen and Buvik (2002) [15], Rahman (2003) [16], Alon (2004) [17], Ozorhon, Dikmen and Birgonul (2006) [18] and more.…”