International Journal of Nonlinear Analysis and Applications
Evaluation and prioritization of factors determining the strategy of entering international markets by using the method of systematic background review
Document Type : Research Paper
Authors
1 Department of Business Management, Khorramshahr International Branch, Islamic Azad University, Khorramshahr, Iran
2 Department of Management, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran
Abstract
This study aims to evaluate and prioritize the determinants of the strategy for entering the international markets. To achieve the goal, the literature and the background of the research were systematically reviewed and 4 important factors, including product features, features of the target market, company features, and exporting features, were identified as the determinants of the exporting strategy in the National Iranian Drilling Co. Then, the identified components were verified using the structural equation modeling by surveying 213 people of the company staff. In the next step, the extracted components were prioritized by 7 managers' ideas of this company using the BWM. The results showed that the most important determinant of the strategy for entering the international market is the product features among the identified components from the managers' view. Then, 3 factors of company features, features of the target market, and exporting features, respectively, were placed in the next categories.
Keywords
[1] S.A. Abboudi and M. Basirat, Exploring the impact of marketing culture on the performance of national Iranian drilling company from the managers’ view, First Int. Conf. Manag. Account. Educ. Sci. Resistance Econ. Action and Practice, Sari, The Company Scientific Research of Baran Andishe, 2015.
[2] R.V. Aguilera, R. Cladera, P.M. Infantes and B. Pascual-Fuster, Business groups and internationalization: Effective identification and future agenda, J. World Bus. 55 (2020), no. 4, 101050.
[3] A.A. Ahmadian and M. Parsamenesh, Identifying factors affecting the successful presence of Iranian exporting companies in foreign markets, Commerc. Surveys 14 (2015), no. 77, 1–15.
[4] Y.S.A. Amoah, F.N.H. Tiew and C.S. Yap, Internationalisation strategies of emerging market firms: evidence from Sarawak, Malaysia, Rev. Int. Bus. Strategy ahead-of-print No. ahead-of-print, 2022. https://doi.org/10. 1108/RIBS-07-2021-0099.
[5] M. Ayati Mehr and F. Beigi, Statistical analysis in Commerce, Trava Publishing, 1st edition, Ahvaz, Iran, 2018.
[6] M. Ayati Mehr and F. Beigi, Research methodology in management, Coffee Publishing, 1st edition, Ahvaz, Iran, 2019.
[7] V. Baena and J. Cervi˜no, New criteria to select foreign entry mode choice of global franchise chains into emerging markets, Soc. Behav. Sci. 175 (2015), 260–267.
[8] A. Bagheri, J. Bamdad Soofi and R. Entezari, Identification and priority of factors affecting the method selected for the entrance to international markets, J. Technol. Dev. Manag. 1 (2012), no. 2, 111–134.
[9] G.D. Blackburne and P.J. Buckley, The international business incubator as a foreign market entry mode, Long Range Plann. 52 (2019), no. 1, 32–50.
[10] J.L. Calof and P.W. Beamish, Adapting to foreign markets: Explaining internationalization, Int. Bus. Rev. 4 (1995), no. 2, 115–131.
[11] J. De Sousa, A.C. Disdier and C. Gaign´e, Export decision under risk, Eur. Econ. Rev. 121 (2020), 103342.
[12] M. Demirbag, MarinaApaydin and S. Sahadev, Micro-foundational dimensions of firm internationalisation as determinants of knowledge management strategy: A case for global strategic partnerships, Technol. Forecast. Soc. Change 165 (2021), 120538.
[13] T.K. Dijkstra and J. Henseler, Consistent and asymptotically normal PLS estimators for linear structural equations, Comput. Statist. Data Anal. 81 (2015), 10–23.
[14] H. Esmailpour, International marketing management, Negahe-e-Danesh Publications, 15th edition, Tehran, Iran, 2014.
[15] B. Farncioni, F. Musso and D. Vardiabasis, Key decisions and changes in internationalization strategies: The case of smaller firms, J. Strategic Market. 21 (2012), no. 3.
[16] F. Foomany, A. Mirabi, V. Bazaee, Gh. and H. Amiran, Developing export marketing strategy Mmodel of tea to target market, Int. J. Agricul. Manag. Dev. 9 (2019), no. 2, 177–190.
[17] S. Gholipour and A. Masoumzadeh Zavareh, Identification and evaluation of factors influencing the select of pricing strategy in food industry, J. Agricul. Econ. Dev. 25 (2017), no. 3, 169–201.
[18] M. Grazzi and Ch. Tomasi, Indirect exporters and importers, Rev. World Econ. 152 (2016), no. 2, 251–281.
[19] J.F. Hair, G.T.M. Hult, C.M. Ringle and M. Sarstedt, A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.), Thousand Oaks, Sage, 2022.
[2] R.V. Aguilera, R. Cladera, P.M. Infantes and B. Pascual-Fuster, Business groups and internationalization: Effective identification and future agenda, J. World Bus. 55 (2020), no. 4, 101050.
[3] A.A. Ahmadian and M. Parsamenesh, Identifying factors affecting the successful presence of Iranian exporting companies in foreign markets, Commerc. Surveys 14 (2015), no. 77, 1–15.
[4] Y.S.A. Amoah, F.N.H. Tiew and C.S. Yap, Internationalisation strategies of emerging market firms: evidence from Sarawak, Malaysia, Rev. Int. Bus. Strategy ahead-of-print No. ahead-of-print, 2022. https://doi.org/10. 1108/RIBS-07-2021-0099.
[5] M. Ayati Mehr and F. Beigi, Statistical analysis in Commerce, Trava Publishing, 1st edition, Ahvaz, Iran, 2018.
[6] M. Ayati Mehr and F. Beigi, Research methodology in management, Coffee Publishing, 1st edition, Ahvaz, Iran, 2019.
[7] V. Baena and J. Cervi˜no, New criteria to select foreign entry mode choice of global franchise chains into emerging markets, Soc. Behav. Sci. 175 (2015), 260–267.
[8] A. Bagheri, J. Bamdad Soofi and R. Entezari, Identification and priority of factors affecting the method selected for the entrance to international markets, J. Technol. Dev. Manag. 1 (2012), no. 2, 111–134.
[9] G.D. Blackburne and P.J. Buckley, The international business incubator as a foreign market entry mode, Long Range Plann. 52 (2019), no. 1, 32–50.
[10] J.L. Calof and P.W. Beamish, Adapting to foreign markets: Explaining internationalization, Int. Bus. Rev. 4 (1995), no. 2, 115–131.
[11] J. De Sousa, A.C. Disdier and C. Gaign´e, Export decision under risk, Eur. Econ. Rev. 121 (2020), 103342.
[12] M. Demirbag, MarinaApaydin and S. Sahadev, Micro-foundational dimensions of firm internationalisation as determinants of knowledge management strategy: A case for global strategic partnerships, Technol. Forecast. Soc. Change 165 (2021), 120538.
[13] T.K. Dijkstra and J. Henseler, Consistent and asymptotically normal PLS estimators for linear structural equations, Comput. Statist. Data Anal. 81 (2015), 10–23.
[14] H. Esmailpour, International marketing management, Negahe-e-Danesh Publications, 15th edition, Tehran, Iran, 2014.
[15] B. Farncioni, F. Musso and D. Vardiabasis, Key decisions and changes in internationalization strategies: The case of smaller firms, J. Strategic Market. 21 (2012), no. 3.
[16] F. Foomany, A. Mirabi, V. Bazaee, Gh. and H. Amiran, Developing export marketing strategy Mmodel of tea to target market, Int. J. Agricul. Manag. Dev. 9 (2019), no. 2, 177–190.
[17] S. Gholipour and A. Masoumzadeh Zavareh, Identification and evaluation of factors influencing the select of pricing strategy in food industry, J. Agricul. Econ. Dev. 25 (2017), no. 3, 169–201.
[18] M. Grazzi and Ch. Tomasi, Indirect exporters and importers, Rev. World Econ. 152 (2016), no. 2, 251–281.
[19] J.F. Hair, G.T.M. Hult, C.M. Ringle and M. Sarstedt, A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.), Thousand Oaks, Sage, 2022.
[20] J.F. Hair, J.J. Risher, M. Sarstedt and C.M. Ringle, When to use and how to report the results of PLS-SEM, Eur. Bus. Rev. 31 (2019), no. 1, 2–24.
[21] J. Henseler, C.M. Ringle and M. Sarstedt, A new criterion for assessing discriminant validity in variance-based structural equation modeling, J. Acad. Market. Sci. 43 (2015), no. 1, 115–135.
[22] T.V. Hoa, J. Vu and H.T. Thanh, Vietnam’s National Export Strategy: Evidence from an economic policy modelling study, Thammasat Rev. Econ. Soc. Policy 7 (2021), no. 2, 4–33.
[23] W. Hunter, Internationalization in onttario colleges: Pattens and policies, J. Educ. Inf. 2 (2021), no. 1, 35–50.
[24] H. Kang, M. Al Imran Yasin, M. Nizam Osman, L. Hoon Ang and M. Li, Exploring the export strategy of Chinese Film and TV Drama in value Chain and digital technology, E3S Web Conf. 251 (2022), 03073.
[25] N. Kock and P. Hadaya, Minimum sample size estimation in PLS-SEM: The inverse square root and gammaexponential methods, Inf. Syst. J. 28 (2018), no. 1, 227–261.
[26] K. Laufs and Ch. Schwens, Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda, Int. Bus. Rev. 23 (2014), no. 6, 1109–1126.
[27] L.C. Leonidou, C.S. Katsikeas and S. Samiee, Marketing strategy determinants of export performance: a metaanalysis, J. Bus. Res. 55 (2002), no. 1, 51–67.
[28] G. Li, X. Zhang, S.M. Chiu, M. Liu and S.P. Sethi, Online market entry and channel sharing strategy with direct selling diseconomies in the sharing economy era, Int. J. Prod. Econ. 218 (2019), 135–147.
[29] T. Li, Reviving traditions in research on international market entry, Adv. Int. Market. 14 (2003), 1–8.
[30] I. Martinez-Zarzoso and F. Johannsen, What explains indirect exports of goods and services in Eastern Europe and Central Asia?, Empirica 45 (2018), no. 2, 283–309.
[31] M. Masum, R. Mohammadkazemi and B. Zarei, Identification and prioritization of international market entry ways (Case study: organic fertilizer), Commerc. Surveys 18 (2020), no. 100, 77–90.
[32] J. Mittelmeier, B. Rienties, A. Gunter and P. Raghuram, Conceptualizing internationalization at a distance: A “Third Category” of University Internationalization, J. Stud. Int. Educ. 25 (2021), no. 3, 266–282.
[33] S.H. Mohammadzadeh, A.R. Karbasi and H. Mohammadi, Factors affecting the selection of strategies for entering the foreign market of medicinal plants, J. Agricul. Econ. Dev. 32 (2018), no. 2, 185-197.
[34] A. Navarro-Garcia, J. Arenas-Gait´an, F.J. Rond´an-Catalu˜na and M. Rey-Moreno, Global model of export performance: Moderator role of export department, J. Bus. Res. 69 (2015), no. 5, 1880–1886.
[35] M. Navarro, Analysis of factors affecting participation of faculty and choice of strategies for the internationalization of the undergraduate agricultural curriculum: The case in two land grant universities, Texas A& M University, ProQuest Dissertations Publishing, 3132113, 2004.
[36] Y. Pashazadeh and Z. Adel, An analysis of how specific factors and barriers affect the strategy of companies to enter international markets using the method of structural equation modeling: A case study of companies trading in dried fruits, J. Bus. Admin. Res. 11 (2019), no. 21, 141–161.
[37] J. Rezaei, Best-worst multi-criteria decision-making method: Some properties and a linear model, Omega 64 (2016), 126–130.
[38] J. Rezaei and M. Mohammadi, Bayesian best-Wworst method: A probabilistic group decision making model, Omega 96 (2020), 102075.
[39] J. Rezaei, Best-worst multi-criteria decision-making method, Omega 53 (2015), 49-57.
[40] H. Rezvani and F. Golalizadeh, Evaluation and analysis of the strategies of food products entry to foreign markets, J. New Market. Res. 1 (2011), no. 8, 193–218.
[41] M. Rezvani and S. M. Mousavinejad, International entrepreneurship, Tehran University Press, 4th edition, Tehran, Iran, 2017.
[42] E. Rizki Febrianny M. Sufiati Purwanegara and A. Aprianingsih, Export strategy of cooperative in an emerging country: Evidence of mitra malabar cooperative, J. Glob. Bus. Soc. Entrepreneur. 5 (2019), no. 14, 30–37.
[21] J. Henseler, C.M. Ringle and M. Sarstedt, A new criterion for assessing discriminant validity in variance-based structural equation modeling, J. Acad. Market. Sci. 43 (2015), no. 1, 115–135.
[22] T.V. Hoa, J. Vu and H.T. Thanh, Vietnam’s National Export Strategy: Evidence from an economic policy modelling study, Thammasat Rev. Econ. Soc. Policy 7 (2021), no. 2, 4–33.
[23] W. Hunter, Internationalization in onttario colleges: Pattens and policies, J. Educ. Inf. 2 (2021), no. 1, 35–50.
[24] H. Kang, M. Al Imran Yasin, M. Nizam Osman, L. Hoon Ang and M. Li, Exploring the export strategy of Chinese Film and TV Drama in value Chain and digital technology, E3S Web Conf. 251 (2022), 03073.
[25] N. Kock and P. Hadaya, Minimum sample size estimation in PLS-SEM: The inverse square root and gammaexponential methods, Inf. Syst. J. 28 (2018), no. 1, 227–261.
[26] K. Laufs and Ch. Schwens, Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda, Int. Bus. Rev. 23 (2014), no. 6, 1109–1126.
[27] L.C. Leonidou, C.S. Katsikeas and S. Samiee, Marketing strategy determinants of export performance: a metaanalysis, J. Bus. Res. 55 (2002), no. 1, 51–67.
[28] G. Li, X. Zhang, S.M. Chiu, M. Liu and S.P. Sethi, Online market entry and channel sharing strategy with direct selling diseconomies in the sharing economy era, Int. J. Prod. Econ. 218 (2019), 135–147.
[29] T. Li, Reviving traditions in research on international market entry, Adv. Int. Market. 14 (2003), 1–8.
[30] I. Martinez-Zarzoso and F. Johannsen, What explains indirect exports of goods and services in Eastern Europe and Central Asia?, Empirica 45 (2018), no. 2, 283–309.
[31] M. Masum, R. Mohammadkazemi and B. Zarei, Identification and prioritization of international market entry ways (Case study: organic fertilizer), Commerc. Surveys 18 (2020), no. 100, 77–90.
[32] J. Mittelmeier, B. Rienties, A. Gunter and P. Raghuram, Conceptualizing internationalization at a distance: A “Third Category” of University Internationalization, J. Stud. Int. Educ. 25 (2021), no. 3, 266–282.
[33] S.H. Mohammadzadeh, A.R. Karbasi and H. Mohammadi, Factors affecting the selection of strategies for entering the foreign market of medicinal plants, J. Agricul. Econ. Dev. 32 (2018), no. 2, 185-197.
[34] A. Navarro-Garcia, J. Arenas-Gait´an, F.J. Rond´an-Catalu˜na and M. Rey-Moreno, Global model of export performance: Moderator role of export department, J. Bus. Res. 69 (2015), no. 5, 1880–1886.
[35] M. Navarro, Analysis of factors affecting participation of faculty and choice of strategies for the internationalization of the undergraduate agricultural curriculum: The case in two land grant universities, Texas A& M University, ProQuest Dissertations Publishing, 3132113, 2004.
[36] Y. Pashazadeh and Z. Adel, An analysis of how specific factors and barriers affect the strategy of companies to enter international markets using the method of structural equation modeling: A case study of companies trading in dried fruits, J. Bus. Admin. Res. 11 (2019), no. 21, 141–161.
[37] J. Rezaei, Best-worst multi-criteria decision-making method: Some properties and a linear model, Omega 64 (2016), 126–130.
[38] J. Rezaei and M. Mohammadi, Bayesian best-Wworst method: A probabilistic group decision making model, Omega 96 (2020), 102075.
[39] J. Rezaei, Best-worst multi-criteria decision-making method, Omega 53 (2015), 49-57.
[40] H. Rezvani and F. Golalizadeh, Evaluation and analysis of the strategies of food products entry to foreign markets, J. New Market. Res. 1 (2011), no. 8, 193–218.
[41] M. Rezvani and S. M. Mousavinejad, International entrepreneurship, Tehran University Press, 4th edition, Tehran, Iran, 2017.
[42] E. Rizki Febrianny M. Sufiati Purwanegara and A. Aprianingsih, Export strategy of cooperative in an emerging country: Evidence of mitra malabar cooperative, J. Glob. Bus. Soc. Entrepreneur. 5 (2019), no. 14, 30–37.
[43] F. Robles Guti´errez and K. lourdes Jauregui, International markets entry strategy determinants: an exploratory study in Peru, Cuadernos Admin. 33 (2017), no. 59, 2–19.
[44] B. Shakib, B. Nazim Raaya and S. Liravayanian, Identification of factors affecting the strategies selected the entrance to the international markets, Int. Conf. Challeng. Solut. Econ. Dev. Manag., 2016.
[45] R. Skinkle and S. Embleton, Comparing international student objectives at Canadian colleges and universities: implications for institutional strategy, Higher Edu. Manag. Policy 24 (2014), no. 3, 37–55.
[46] C. M. P. Sousa and Q. Tan, Exit from a foreign market: Do poor performance, strategic fit, cultural distance, and international experience matter?, J. Int. Market. 23 (2015), no. 4, 84–104.
[47] I. Surdu and K. Mellahi, Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research, Int. Bus. Rev. 25 (2015), no. 5, 1169-1184.
[48] A. Verbeke, L. Ciravegna, L.E. Lopez and S.K. Kundu, Five configurations of opportunism in international market entry, J. Manag. Stud. 56 (2019), no. 7, 1287–1313.
[49] W. Wang and Hao Ma, Export strategy, export intensity, and learning: Integrating the resource perspective and institutional perspective, J. World Bus. 53 (2018), no. 4, 581–592.
[50] G. F. Watson IV, S. Weaven, H. Perkins, D. Sardana and R.W. Palmatier, International market entry strategies: Relational, digital, and hybrid approaches, J. Int. Market. 26 (2018), no. 1, 30–60.
[51] J. Zekiri and B. Angelova, Factors that Influence Entry Mode Choice in Foreign Markets, Eur. J. Soc. Sci. 22 (2011), no. 4.
[52] S. Zerihun, A Firm’s Choice between direct and indirect export channel of exports by: A study of manufacturing firms in Sub Saharan African Economies, Available at SSRN 2167982 (2012).
[53] H. Zhaoand S. Zou, The impact of industry concentration and firm location on export propensity and intensity: An empirical analysis of Chinese manufacturing firms, J. Int. Market.10 (2002) no. 1, 52–71.
[44] B. Shakib, B. Nazim Raaya and S. Liravayanian, Identification of factors affecting the strategies selected the entrance to the international markets, Int. Conf. Challeng. Solut. Econ. Dev. Manag., 2016.
[45] R. Skinkle and S. Embleton, Comparing international student objectives at Canadian colleges and universities: implications for institutional strategy, Higher Edu. Manag. Policy 24 (2014), no. 3, 37–55.
[46] C. M. P. Sousa and Q. Tan, Exit from a foreign market: Do poor performance, strategic fit, cultural distance, and international experience matter?, J. Int. Market. 23 (2015), no. 4, 84–104.
[47] I. Surdu and K. Mellahi, Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research, Int. Bus. Rev. 25 (2015), no. 5, 1169-1184.
[48] A. Verbeke, L. Ciravegna, L.E. Lopez and S.K. Kundu, Five configurations of opportunism in international market entry, J. Manag. Stud. 56 (2019), no. 7, 1287–1313.
[49] W. Wang and Hao Ma, Export strategy, export intensity, and learning: Integrating the resource perspective and institutional perspective, J. World Bus. 53 (2018), no. 4, 581–592.
[50] G. F. Watson IV, S. Weaven, H. Perkins, D. Sardana and R.W. Palmatier, International market entry strategies: Relational, digital, and hybrid approaches, J. Int. Market. 26 (2018), no. 1, 30–60.
[51] J. Zekiri and B. Angelova, Factors that Influence Entry Mode Choice in Foreign Markets, Eur. J. Soc. Sci. 22 (2011), no. 4.
[52] S. Zerihun, A Firm’s Choice between direct and indirect export channel of exports by: A study of manufacturing firms in Sub Saharan African Economies, Available at SSRN 2167982 (2012).
[53] H. Zhaoand S. Zou, The impact of industry concentration and firm location on export propensity and intensity: An empirical analysis of Chinese manufacturing firms, J. Int. Market.10 (2002) no. 1, 52–71.
)
Volume 14, Issue 5
May 2023Pages 273-285
- Receive Date: 25 November 2021
- Revise Date: 03 January 2022
- Accept Date: 11 February 2022