Modeling the Macro-Environmental Factors of International Distribution

The study is intended to find the relationship of macro-environmental factors relating to international distribution especially in South East Asia. We are also attempted to develop a hierarchical model, which can interpret the relationship between the factors. The study applied a comprehensive discussion with expert panel and ‘Bibliometrics’ methodology to identify six environmental factors of international distribution. Ultimately, the macro-environmental factors refer to the uncontrollable forces and conditions influencing an organization. Later, the interpretive structural modelling (ISM) was employed to study the relationship among those factors to distinguish which factors are the most challenges for the international distribution. MICMAC analysis was finally employed to set the level of driving and dependence power among the factors. The results of the study provide the systematic model that explains the relationship among six environmental factors of international distribution. The contexts on the model leverage the understanding of macro-environmental influences on international distribution. The six influences also provide significant challenges for international distribution. The analysis shows that the political, economic, and cultural influences become the most challenge that international trade specialists should be concerned vigilantly. The other three influences can set lower priority from top management due to their dependency on the top three challenges. The study limits its focus on the international distribution that activities are performed across national boundaries. Managers can use the study to create context-specific framework for solving their environmental influences on international distribution. In this research, there are some factors having higher driving power in the ISM, which need more consideration from trading specialists because there are a few other dependent variables being affected by them. Variables emerging with high dependence contribute to productivity and performance of international distribution.