International Journal of Nonlinear Analysis and Applications

Providing a model for market share development based on strategies to enter international markets with foundational data and hierarchical analysis

Document Type : Research Paper

Authors

1 Department of Business Management, Khorramshahr International Branch, Islamic Azad University, Khorramshahr, Iran

2 Department of Business Management, Shahid Chamran University of Ahvaz, Ahvaz, Iran

3 Department of Management, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.

Abstract

The aim of the current research is to design a model to develop the market share based on the strategies for entering the international market of the National Iranian Drilling Company. A quantitative and qualitative mixed method was used to achieve this goal. In the qualitative phase, the data were collected through interviews with 12 experts using the snowball sampling method and analyzed with the help of the Foundation's data theory in three stages of open, central and selective coding. The findings of this phase showed that 39 concepts can be identified, which can be classified into 17 categories by examining the conceptual similarity, which can be classified as components of the paradigm model, which can be based on the main criterion of causal conditions (government support, factors related to the country of origin and factors related to the target market), the central phenomenon (maintaining the market share and increasing the market size), the dominant base (communication and functional infrastructures, specialized infrastructures, appropriate policy-making and planning), intervening conditions (political and economic factors, cultural factors and social), strategies (customer orientation, empowerment and promotion of international capabilities, participation in investment and non-participation in investment) and consequences (improvement of technology, growth and survival, and credibility and reputation of the company). In the second phase, using the opinion of experts and using the AHP hierarchical analysis method, the determined criteria were identified and prioritized. The results of this stage showed that the criterion of the leaders with the highest weight of 0.278 and the criterion of the ruling platforms with the lowest weight of 0.081 can play a role in the development of the market share of this company.

Keywords

[1] H. Abbasi Esfenaji, M. Salimi Baher and M.T. Khodaei Gargari, A study on the effect of business knowledge on the process of internationalization of businesses, Roshde Fanavari Pub.15 (2019), no. 58, 13–22.
[2] E. Affum-Osei, E.A. Asante, S.K. Forkouh, M.O. Aboagye, and C.O. Antwi, Unemployment trends and labor market entry in Ghana: Job search methods perspective, Labor History 60 (2019), no. 6, 716–733.
[3] A.A. Ahmadian and M. Parsamenesh, Identifying the determinants of successful presence of Iranian exporting companies in foreign markets, Bus. Rev. 14 (2016), no. 77, 1–15.
[4] M. Ahmadzadeh, A. Naami, and S.M. Hashemi, Presenting the international market development model (case study: petrochemical products), Bus. Admin.13 (2021), no. 2, 384–411.
[5] S.H. Ang, M.H. Benischke and J.P. Doh, The interactions of institutions on foreign market entry mode, Strategic Manag. J. 36 (2015), no. 10, 1536–1553.
[6] M. Ayati Mehr and F. Beigi, Statistical analysis in business, First edition, Tarava Publications, Ahvaz, Iran, 2018.
[7] M. Ayati Mehr and F. Beigi, Research Methodology in Management, First edition, Ghahveh Publications, Ahvaz, Iran, 2020.
[8] N. Azad and N. Pourahmadian, Identification and ranking of the factors influencing the entry into international markets on the market share with the mediation of statistical process control (case study: drug manufacturing companies located in Tehran, present on the stock market), Third Conf. Ind. Engin. Econ. Manag., 2019.
[9] A. Azar and M. Momeni, Statistics and its application in management (statistical analysis), Second edition, Tehran, SAMT, 2017.
[10] A. Bagheri, J. Bammad Soufi, and R. Entezari, Identifying and ranking the effective factors of international market entry (Case study: Major car manufacturers of Iran), Technol. Dev. Manag. Quart. 1 (2013), no. 2, 111-134.
[11] X. Bai, Research on the Strategy of Chinese Automobile Enterprises Entering Overseas Markets, 2019.
[12] F.R. Cahen, S. Lahiri, and F.M. Borini, Managerial perceptions of barriers to internationalization: An examination of Brazil’s new technology-based firms, J. Bus. Res. 69 (2016), no. 6, 1973–1979.
[13] W.W. Chin, J.-H. Cheah, Y. Liu, H. Ting, X.-J. Lim, and T.H. Cham, Demystifying the role of causal-predictive modeling using partial least squares structural equation modeling in information systems research, Ind. Manag. Data Syst.120 (2020), no. 12, 2161–2209.
[14] H. Danaeifard, S. M. Alvani, and A. Azar, Qualitative Research Methodology in Management: A Comprehensive Approach, Saffar Publications, 6th Edition, Tehran, Iran, 2019.
[15] A. Farrokhbakht Foumani, V. Mirabi, Gh. Bazaei, and H. Amiran, Designing a tea export marketing strategy model for target markets, Int. J. Agricul. Manag. Dev. 9 (2019), no. 2, 177–190.
[16] M. Faryabi, S. Rahimi Aghdam, V. Ebrahimi Kharajo, and S. Kazemi, A study on the effect of organizational, strategic, and environmental factors on export performance: Analysis of the role of innovative export among export companies, Sci. Res. J. Int. Bus. Admin. 4 (2021), no. 2, 63–86.
[17] H. Ghazvini and M. Maleki Minbash Zargah, Identifying and prioritizing marketing sub-mixes with an Islamic marketing approach in international market entry (case study: plaster factories of Semnan province), Strategic Manag. Thought 12 (2018), no. 2, (serial No. 24), 334–351.
[18] B.L. Golden and Q. Wang, An alternate measure of consistency, B. L. Golden, A. Wasil & P.T. Harker (eds.), Analytic Hierarchy Process: Applications and Studies, Springer Verlag, New-York. 1990, pp. 68–81.
[19] F.R. Gutierrez and K.L.J. Machuca, International markets entry strategy determinants: An exploratory study in Peru, Cuadernos Admin. 33 (2017), no. 59, 2–19.
[20] J.F. Hair, W.C. Black, B.J. Babin, and R.E. Anderson, Multivariate data analysis, (8th ed.), Cengage Learning, London, 2019.
[21] 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.
[22] A.A. Hassanvand, D. Hassanvand, and Y. Nadami, The effects of sanctions on Iran’s non-oil exports, Strategic Macro Policy Quart. 4 (2018), no. 6, 666–684.
[23] F. Hemmati, M. Hamidizadeh, B. Hajipour, and Sh. Azizi, Designing and explaining the international capability model of companies exporting agricultural products to enter global markets, Public Admin. Res. 11 (2018), no. 41, 29–56.
[24] 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.
[25] H. Hwang, M. Sarstedt, J.-H. Cheah, and C.M. Ringle, A concept analysis of methodological research on composite-based structural equation modeling: Bridging PLSPM and GSCA, Behaviormetrika 47 (2020), no. 1, 219–241.
[26] N. Jalaliyoon, N. A. Bakar, and H. Taherdoost, Accomplishment of critical success factor in organization; using analytic hierarchy process, Int. Jo. Acad. Res. Manag. 1 (2012), no. 1, 1–9.
[27] S. Jin Ko, The differing foreign entry mode choices for sales and production subsidiaries of multinational corporations in the manufacturing industry, Sustainability 11 (2019), no. 5, 4089.
[28] L. Kaufmann and J. Gaeckler, A structured review of partial least squares in supply chain management research, J. Purchas. Supply Manag. 21 (2015), no. 4, 259–272.
[29] G. Khan, M. Sarstedt, W.-L. Shiau, J.F. Hair, C.M. Ringle, and M. Fritze, Methodological research on partial least squares structural equation modeling (PLS-SEM): A social network analysis, Internet Res. 29 (2019), no. 3, 407–429.
[30] B. Khoshtinat, A. Shahabadi, M. Shojaei Shad, and A. Moradi, The effect of innovation on the market share of selected countries in the world’s non-oil exports, Innov. Manag. 8 (2019), no. 4, 151–171.
[31] M. Krejnus, J. Stofkova, K. R. Stofkova, and V. Binasova, The use of the DEA method for measuring the efficiency of electronic public administrations as part of the digitization of the economy and S=society, Appl. Sci. 13 (2023), no. 6, 3672.
[32] M.C. Lee, A method of performance evaluation by using the analytic network process and balanced scorecard, Int. Conf. Converg. Inf. Technol., 2007.
[33] 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.
[34] J.-B. Lohmoller, Latent variable path modeling with partial least squares, Heidelberg, 1989.
[35] G.D. Markman, P. Gianiodis, G. Tyge Payne, C. Tucci, I. Filatotchev, R. Kotha, and E. Gedajlovic, The who, where, what, how, and when of market entry, J. Manag. Stud. 56 (2019), no. 7, 1241–1259.
[36] M. Masoum, R. Mohammad Kazemi, and B. Zarei, Identifying and prioritizing methods of international market entry (case study: organic fertilizers), Busi. Rev. 18 (2020), no. 100, 77–90.
[37] S. Mirghorbanii Ganji, A study on obstacles to the development of non-oil exports and identifying export enhancing factors, Smart Ind. Manag. (2013), no. 10/ serial no. 151, 23–29.
[38] S.H. Mohammadzadeh, A. Karbasi, and H. Mohammadi, Determinants of the choice of strategies for entering the foreign market of medicinal plants; case study: Razavi Khorasan Province, Agricul. Dev. Econ. 32 (2018), no. 2, 185–197.
[39] E. Malekakhlagh, S.M. Nopasand Asil, and Kh. Jamali Abbasali, Evaluation strategies to enter foreign markets Iran Khodro using BSC and fuzzy AHP, J. Bus. Admin. Res. 5 (2013), no. 9, 85–104.
[40] M.R. Moreira, M.A. Maia, P.S. Sousa, and R.F.C. Meneses, Factors influencing the internationalization of services firms: The case of design, engineering, and architecture consulting firms, Explor. Serv. Sci.: 4th Int. Conf. IESS 2013, Porto, Portugal, February 7-8, 2013. Proc. 4. Springer Berlin Heidelberg, 2013, pp. 246–262.
[41] E.R.D. Muhlas and S. Prihatiningtyas, Marketing strategy for creative SMEs in entering the export market, INCOME: Innov. Econ. Manag. 1 (2021), no. 1, 16–21.
[42] C. Nitzl, The use of partial least squares structural equation modeling (PLS-SEM) in management accounting research: Directions for future theory development, J. Account. Literature 37 (2016), 19–35.
[43] L. Nurcholis, How to improve internationalization strategy based on market characteristics, culture understanding, and knowledge management: The mediating effect of management behavior, J. Knowledge Econ. 12 (2021), no. 4, 1717–1740.
[44] S.A. Oboudi and M. Basirat, A study on the effect of marketing culture on the performance of National Iranian Drilling Company from the managers’ perspective, First Int. Conf. Manag. Account. Educ. Sci. Resistance Econ. Action Practice, Sari, Baran Andisheh Scientific-Research Company, 2016.
[45] Y. Pashazadeh and Z. Adel, The effect of company’s specific factors and obstacles to their international market entry strategies using the structural equation modeling technique (Case study: Companies active in dry fruits), Explor. Bus. Manag. 11 (2019), no. 21, 141–161.
[46] V.Q. Pham, B.K.Q. Nguyen, and T.Q. Le, Success factors affecting internationalization process of large Vietnamese companies: A conceptual framework, J. Asian Finance Econ. Bus. 7 (2020), no. 11, 905–913.
[47] S.C. Manley, J.F. Hair, R. I. Williams, and W.C. McDowell, Essential new PLS-SEM analysis methods for your entrepreneurship analytical toolbox, Int. Entrepreneur. Manag. J. 17 (2021), 1805–1825.
[48] E. Rekova, Marketing strategies of “Born Globals” companies when entering the foreign market, Trends Econ. Manag. 12 (2018), no. 31, 87–100.
[49] A. Rezvani Gol and F. Alizadeh, Evaluation and analysis of food product entry strategies in foreign markets, J. New Market. Res. 1 (2011), no. 3, 193–218.
[50] T.L. Saaty, The Analytic Hierarchy Process, McGraw-Hill, New York, 1980.
[51] M. Sarsted, J.F. Hair, C.M. Ringle, K.O. Thiele, and S.P. Gudergan, Estimation issues with PLS and CB-SEM: Where the bias lies!, J. Bus. Res. 69 (2016), no. 10, 3998–4010.
[52] M. Schellenberg, M.J. Harker, and A. Jafari, International market entry mode–a systematic literature review, J. Strategic Market. 26 (2018), no. 7, 601–627.
[53] B. Shakib, B. Nazem Roaya, and S. Liravianian, Identification of determinants of choosing international market entry strategies, Int. Conf. Chall. Sol. Econ. Dev. Manag., 2017.
[54] A. Strauss and J. Corbin, Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, Thousand Oaks, CA: Sage, 2008.
[55] K. Tahernejad, H. Rangriz, and M.M. Mozaffari, Designing a causal model for international market entry strategies, Int. Bus. Manag. 4 (2021), no. 3, 23–43.
[56] Z. Valipouri and B. Tabrizian, Designing the process of increasing sales and market share of dairy companies based on the sensory marketing model, Bus. Manag. Explor. 26 (2021), no. 20, 435–454.
[57] 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.
[58] 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.
[59] A. Zamani, M.H. Rahmati, H. Zandhesami, and H. Yazdani, An analysis of motivating and inhibiting factors of international strategic cooperation of knowledge-based companies (case study: Iranian and German biotechnology companies), Sci. Res. J. Int. Bus. Manag. 2 (2019), no. 2, 145–169.
[60] 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, 2012, Available at SSRN: https://ssrn.com/abstract=2167982 or http://dx.doi.org/10.2139/ssrn.2167982.
International Journal of Nonlinear Analysis and Applications
Volume 15, Issue 4
April 2024
Pages 77-93
  • Receive Date: 07 January 2023
  • Revise Date: 17 March 2023
  • Accept Date: 27 March 2023