IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v11y2002i2p165-192.html
   My bibliography  Save this article

Toward a tradeoff model for international market selection

Author

Listed:
  • Papadopoulos, N.
  • Chen, Hongbin
  • Thomas, D. R.

Abstract

The literature on International Market Selection (IMS) contains many proposed models which make significant contributions but do not effectively address the IMS problems. A new tradeoff model is proposed that uses two key constructs, demand potential and trade barriers, as well as firm strategy as a contingency construct. Each key construct is measured by only four variables, resulting in simplicity and low application cost, and strategy is used to develop weights for the variables. The model is tested in real market conditions for 17 target countries and three diverse products over a six-year period. The weighting solution that favors demand potential is shown to have strong predictive power for the short to medium term. In addition to being tested and validated, the model introduces a number of advances including the weighting of indicators, an approach to quantifying nontrade barrieers, and validation for two different exporting countries.

Suggested Citation

  • Papadopoulos, N. & Chen, Hongbin & Thomas, D. R., 2002. "Toward a tradeoff model for international market selection," International Business Review, Elsevier, vol. 11(2), pages 165-192, April.
    • Handle: RePEc:eee:iburev:v:11:y:2002:i:2:p:165-192
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593101000543
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    2. Ronald H Vogel, 1976. "Uses of Managerial Perceptions in Clustering Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 7(1), pages 91-99, March.
    3. Armstrong, J. Scott, 1970. "An Application of Econometric Models to International Marketing," MPRA Paper 81698, University Library of Munich, Germany.
    4. Robert G Cooper & Elko J Kleinschmidt, 1985. "The Impact of Export Strategy on Export Sales Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(1), pages 37-55, March.
    5. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    6. Stan D Reid, 1981. "The Decision-Maker and Export Entry and Expansion," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 12(2), pages 101-112, June.
    7. Singh, Balvir & Kumar, Ramesh C, 1971. "The Relative Income Hypothesis-A Cross Country Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 17(4), pages 341-352, December.
    8. Davidson, William H., 1983. "Market similarity and market selection: Implications for international marketing strategy," Journal of Business Research, Elsevier, vol. 11(4), pages 439-456, December.
    9. A Coskun Samli, 1977. "An Approach for Estimating Market Potential in East Europe," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(2), pages 49-54, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sotiros, Dimitrios & Rodrigues, Vasco & Silva, Maria Conceição, 2022. "Analysing the export potentials of the Portuguese footwear industry by data envelopment analysis," Omega, Elsevier, vol. 108(C).
    2. Brouthers, Lance Eliot & Mukhopadhyay, Somnath & Wilkinson, Timothy J. & Brouthers, Keith D., 2009. "International market selection and subsidiary performance: A neural network approach," Journal of World Business, Elsevier, vol. 44(3), pages 262-273, July.
    3. Dimitratos, Pavlos & Plakoyiannaki, Emmanuella & Pitsoulaki, Antigoni & Tüselmann, Heinz Josef, 2010. "The global smaller firm in international entrepreneurship," International Business Review, Elsevier, vol. 19(6), pages 589-606, December.
    4. He, Xinming & Wei, Yingqi, 2011. "Linking market orientation to international market selection and international performance," International Business Review, Elsevier, vol. 20(5), pages 535-546, October.
    5. Malhotra, Shavin & Sivakumar, K. & Zhu, PengCheng, 2011. "A comparative analysis of the role of national culture on foreign market acquisitions by U.S. firms and firms from emerging countries," Journal of Business Research, Elsevier, vol. 64(7), pages 714-722, July.
    6. Majocchi, Antonio & Bacchiocchi, Emanuele & Mayrhofer, Ulrike, 2005. "Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships," International Business Review, Elsevier, vol. 14(6), pages 719-738, December.
    7. Gupta, Rakesh & Pandey, Ritesh & Sebastian, V.J., 2021. "International Entrepreneurial Orientation (IEO): A bibliometric overview of scholarly research," Journal of Business Research, Elsevier, vol. 125(C), pages 74-88.
    8. Wood, Van R. & Karriker, Joy H. & Williams, Larry J., 2010. "Evaluating export markets: Experienced exporters' hierarchical cognitive structures," Journal of Business Research, Elsevier, vol. 63(12), pages 1261-1266, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lucia Bosáková & Matúš Kubák & Marek Andrejkovič & Zuzana Hajduová, 2015. "Doing business abroad: utility function model for country selection in preliminary screening phase," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 53-68, March.
    2. Drogendijk, H.J., 2001. "Expansion patterns of Dutch firms in Central and Eastern Europe : Learning to internationalize," Other publications TiSEM 18571cef-0dd0-46ff-82aa-3, Tilburg University, School of Economics and Management.
    3. Tamar Almor & Niron Hashai & Seev Hirsch, 2006. "The product cycle revisited: Knowledge intensity and firm internationalization," Management International Review, Springer, vol. 46(5), pages 507-528, September.
    4. Jorge MONGAY, 2017. "Market Economies Potentialities and Cultural Clusters. A Global and Longitudinal Study," Expert Journal of Economics, Sprint Investify, vol. 5(1), pages 1-13.
    5. Chandra, Ramdas & Newburry, William, 1997. "A cognitive map of the international business field," International Business Review, Elsevier, vol. 6(4), pages 387-410, August.
    6. Czinkota, Michael R. & Grossman, David A. & Javalgi, Rajshekhar (Raj) G. & Nugent, Nicholas, 2009. "Foreign market entry mode of service firms: The case of U.S. MBA programs," Journal of World Business, Elsevier, vol. 44(3), pages 274-286, July.
    7. M. Krishna Erramilli & Derrick E. D'Souza, 1993. "Venturing into Foreign Markets: The Case of the Small Service Firm," Entrepreneurship Theory and Practice, , vol. 17(4), pages 29-41, July.
    8. Bell, J.H.J., 1996. "Joint or Single Venturing? : An Electric Approach to Foreign Entry Mode Choice," Other publications TiSEM 06f84735-3cf5-432f-8bc8-c, Tilburg University, School of Economics and Management.
    9. Leonidou, Leonidas C. & Katsikeas, Constantine S. & Coudounaris, Dafnis N., 2010. "Five decades of business research into exporting: A bibliographic analysis," Journal of International Management, Elsevier, vol. 16(1), pages 78-91, March.
    10. Daniel R Clark & Dan Li & Dean A Shepherd, 2018. "Country familiarity in the initial stage of foreign market selection," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 442-472, May.
    11. Saleh, Ali Salman & Anh Nguyen, Thi Lan & Vinen, Denis & Safari, Arsalan, 2017. "A new theoretical framework to assess Multinational Corporations’ motivation for Foreign Direct Investment: A case study on Vietnamese service industries," Research in International Business and Finance, Elsevier, vol. 42(C), pages 630-644.
    12. Musso, Fabio & Francioni, Barbara, 2009. "Foreign markets entry mode decision for SMEs. Key factors and role of industrial districts," MPRA Paper 32153, University Library of Munich, Germany.
    13. Leonidou, Leonidas C. & Theodosiou, Marios, 2004. "The export marketing information system: an integration of the extant knowledge," Journal of World Business, Elsevier, vol. 39(1), pages 12-36, February.
    14. Xanthippe Adamoglou & Dimitris Kyrkilis, 2020. "MNEs Entry Strategies through a Distance Framework: A New Perspective," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 70(3-4), pages 83-105, July-Dece.
    15. Brouthers, Keith D. & Brouthers, Lance Eliot & Werner, Steve, 1996. "Dunning's eclectic theory and the smaller firm: The impact of ownership and locational advantages on the choice of entry-modes in the computer software industry," International Business Review, Elsevier, vol. 5(4), pages 377-394, August.
    16. Li, Lee & Ng, Peggy, 2002. "Market exchanges, hierarchical exchanges or relational exchanges in export channels into emerging markets," International Business Review, Elsevier, vol. 11(6), pages 707-723, December.
    17. Jun Xia, 2010. "Resource Dependence and Cross-border Constraint-absorption," Management International Review, Springer, vol. 50(2), pages 155-183, April.
    18. Mai Thai & Li Chong, 2013. "Dynamic experimental internationalization: Strategy of SMEs from a transition economy," Journal of International Entrepreneurship, Springer, vol. 11(4), pages 370-399, December.
    19. Madhok, Anoop, 1996. "Know-how-, experience- and competition-related considerations in foreign market entry: An exploratory investigation," International Business Review, Elsevier, vol. 5(4), pages 339-366, August.
    20. Andrea S. Gubik & Sándor Karajz, 2014. "The Choice of Foreign Market Entry Modes: The Role of Resources and Industrial Driving Forces," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(1), pages 49-63.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:11:y:2002:i:2:p:165-192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.