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Toward a tradeoff model for international market selection

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  • 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
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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).
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.

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