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

Document Type : Research Paper

Authors

1 Assistant Professor of Department Management, Faculty of Economics and Management, Urmia University

2 Masters student of Business Management, Department of Management, Faculty of Economics and Management, Urmia University

Abstract

The aim of this study is to explain the factors influencing the selection of strategies for entering international markets. For this purpose, according to the literature on the types of entry, the strategies were divided into two broad categories of export and non-export strategies. In the next stage, the factors influencing the choice of strategy were identified in two categories including the company's specific factors and the barriers to entry. The statistical population of the study consisted of the directors, sales directors and marketing experts of companies trading in dried fruits in the West Azarbaijan province. According to the statistics obtained from the Chamber of Commerce, 32 companies were active in this province. Due to the limited size of the population, the whole population (i.e. directors, sales managers, and marketing experts) was selected as the sample determined based on the census sampling method. After deletion of questionnaires, were received. The data were collected from 61 questionnaires and analyzed through structural equations (i.e. the partial least squares approach) and the Smart PL S2 software. The results showed that certain factors including the company size, international experience, management characteristics, tariff barriers, geographical distance, and cultural distance affect the selection of export strategies to enter international markets. Also, product type and non-tariff barriers were found to be of no effect in this regard. These two variables, however, proved to have impacts on the choice of non-export strategies.

Keywords

References

1-       Andreu, R,. Claver, E,. Quer, Dm. (2017). Foreign market entry mode choice of hotel companies: Determining factors, International Journal of Hospitality Management, 2017 Elsevier Ltd, 111-119.
2-       Babaei Zakliki, M. A., (2012). International Marketing, Samt Publisher, Eleventh Edition, Tehran.
3-       Chen, C,. Messner, J,. (2011). Characterizing entry modes for international construction markets, Engineering, Construction and Architectural Management, Vol. 18 No. 6, 547-567.
4-       Davari, A,. Rezazadeh, A,. (2016). Structural Equation Modeling with PLS Software, University Jahad Publisher Organization, Third Edition,19-234.
5-       Diamantopoulos, A. Siguaw, J.A,. (2010). Frmative versus reflective indicators in Organizational measure development: a comparison and empirical illustration, British Journal of Management, 17 (4):263-282.
6-       Fazeli, P,. Taherikia, F,. (2015). Marketing Strategies for Entering International Markets Using SWOT Method, Journal of Applied Environmental and Biological Sciences, Vol. 10, No. 5, 241-245.
7-       Fallahi, A,. Nasehifar, V,. Rasouli, K,. (2016). Identifying the Important Causes for Entry into International Markets in Polyesters Producing Companies Based on the AHP Model, The 2nd National Conference on New Issues in Accounting, Management and Entrepreneurship.
8-       Kao, M.S,. Chang, Y.Ch,. Kuo, A,. Chiu, Ch,. (2012). "How Cultural Distance Influences Entry Mode Choice: The Contingent Role of Host Country's Governance Quality", Journal of Business Research, Vol. 65, No.8.
9-       Karimi Khosroshahi, S,. (2017). The Impact of Strategies for Entry into Foreign Markets of Small and Medium Enterprises, 8th International Conference on Integrated Management of the Crisis, 26 and 27 Bahman, Tehran.
10-   Karimi Alaviyeh, M. R,. Ebrahimi, A,. Alawi, M,. (2016). Entry Procedures for International Markets, Nasr ghalam Publisher, Tehran, First Edition.
11-   Keegan, Warren G. Translator: Ebrahimi A,. (2014). Global Marketing Management, Office of Cultural Research, Fifth Edition, Tehran.
12-   Kline, R. B,. (2010). Principles and practice of structural equation modeling.The Guilford Publisher. New York.
13-   Kraus, S,. Meier, F,. Eggers, F,. Bouncken, R. B,. Schuessler, F,. (2016). Standardisation vs. Adaption: A Conjoint Experiment on the Influence of Psychic, Cultural and Geographical Distance on International Marketing Mix Decisions, European J. International Management, Vol. 10, No. 2, 127-156.
14-   Haghighi Kaffash, M,. Haghighikhah, M,. Kordlouie, H,. (2012). Identifying Factors Influencing Entry Mode Selection in Food Industry of Small and Medium-sized Enterprises (SMEs) in Iran, International Journal of Marketing Studies, Vol. 4, No. 5, 47-55.
15-   Haghighi, M., (2014). International Business, Tehran University Publisher, Thirteenth Edition, Tehran.
16-   Lee, H.H,. Yang, T.T,. Chen, Ch.B., Chen, Y,. (2011).A fuzzy hierarchy integral analytic expert decision process in evaluating foreigninvestment entry mode selection for Taiwanese bio-tech firms, Expert Systems with Applications, vol, 38, 3304–3322.
17-   Lu, Yao. Karpova, Elena E. Fiore, Ann Marie,. (2011). Factors influencing international fashion retailers' entry mode choice, Journal of Fashion Marketing and Management: An International Journal, Vol. 15, No.1, 58 – 75.
18-   Maurel, C,. (2010). Determinants of Export Performance in French wine SMEs, International Journal of Wine Business Research, Vol. 2, No. 2, 118-142.
19-   Mpofu, T,. Chigwende, Sh,. (2013). An Exploration of Foreign Market Entry Modes for Zimbabwean Companies, Developing Country Studies. Vol.3, No.11, 12-18.
20-   Musso, F,. Francioni, B,. (2012). How Do Smaller Firms Select Foreign Markets, International Journal of Marketing Studies, Vol. 4, No. 6, 44-53.
21-   Musso, F,. Francioni, B,. (2014). International Strategy for SMEs: Criteria for Foreign Markets and Entry Modes Selection, Journal of Small Business and Enterprise Development, Vol. 21, No.2, 301 – 312.
22-   Musteen, M,. Datta, D. K. Herrmann, P,. (2009). Ownership structure and CEO compensation: Implications for the choice of foreign market entry modes, Journal of International Business Studies, Vol. 40, No. 2, 321–338.
23-   Nisha, M,. (2016). Foreign Market Entry Strategies, International Journal of All Research Education and Scientific Methods (Ijaresm), Vol. 4, No.1, January- 2016, 20-23
24-   Palmquist, Th,. (2012). Challenges and Market Entry Strategies: A Study of Scandinavian Companies in Japan, Master Thesis, MBA Program, June 4th (2012), Blekinge Institute of Technology.
25-   Pehrsson, A,. (2008). Strategy Antecedents of Modes of Entry into Foreign Markets, Journal Of Business Research, Vol. 61, No. 2, 132–140.
26-   Šarapovas, Tadas. Huettinger, Maik. Ričkus, Domas. The Impact of Market- Related Factors on The Choice of Foreign Market Entry Mode by Service Firms", Organizations and Markets in Emerging Economies,Vol. 7, PP 34-57.
27-   Sadeghi, S,. (2015). Identifying the strategy of entering the Qom carpet carpet into the handmade carpet market in China (handmade carpet clamor study of Qom), the first International Management Conference of Iran, Tehran, Center for Development Conferences of Iran, 9-1.
28-   Tjosevik, R,. (2012). Factors influencing International Entry Strategies, Norwegian University of Science and Technology, Department of Industrial Economics and Technology Management, Birgitte Refsland, June 2012.
29-   Ravelomanana, F,. Liang, M,. Christophe, M,. Leoncine P,. (2015). The External and Internal Factors that Influence the Choice of Foreign Entry Modes at Wuhan Iron and Steel Corporation, Open Journal of Business and Management, Vol. 3, 20-29.
30-   Rezvani, H.R,. Alizadeh, F,. (2011). Evaluating and analyzing the strategies for entering food products into foreign markets", Two Journal of Research and New Marketing Research, Autumn & Winter 2011, First Year, No. 3, 218-193.
31-   Rosta, A,. Venus, d,. Abrahamid, A,. (2015). Marketing Management, Study Organization and Compilation of the Humanities Books of Universities (Samt), Fourteenth Edition, Autumn 2010, 445.
32-   Teixeira, A. C,. Grande, M, E. (2012). Entry Mode Choices of Multinational Companies (MNCs) and Host Countries’ Corruption: A Review", African Journal of Business Management, Vol. 6, No. 27, 7942-7958.
33-   Turkina, E,. Gollnhofer Franziska, J, (2015). Cultural distance and entry modes: implications for global expansion strategy", Cross Cultural Management, Vol. 22, No. 1, 21 – 41.
Journal of Business Administration Researches
Volume 11, Issue 21
September 2019
Pages 141-161

Files

Share

How to cite

Statistics