Selecting overseas markets and entry modes: two decision processes or one?

Adam J. Koch

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International Business and FDI Innovation and Knowledge Management International Student and Expatriate Challenges

Abstract

Contrary to the prevalent theory approaches that treat market selection and market entry mode selection as two related but essentially separate decisions, this paper argues that these should most appropriately be looked on as two aspects of one decision process. It proposes that an exhaustive list of factors that can influence outcomes of such an integrated process be developed and argues that an inclusive spectrum of analysis would be able to accommodate all business contexts and most relevant business practice. It then presents a new market and market entry mode selection model (MEMS) which conforms to the proposed inclusive spectrum of the underlying decision process analysis.

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References

1987The Economic Institutions of Capitalism 1977The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments 1980Toward an Eclectic Theory of International Production: Some Empirical Tests 2007The Economic Institutions of Capitalism. Firms, Markets, Relational Contracting 1986Modes of Foreign Entry: A Transaction Cost Analysis and Propositions 1992Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internalization Factors 1988Internationalization: Evolution of a Concept 1988Entry Strategies for International Markets

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