Introduction

Widening globalization and increasing deregulation of markets is offering companies an opportunity to expand into foreign countries around the world (Vaidya 2006). Thus, more firms are interested in expanding their operations and activities outside their domestic countries (Agarwal & Ramaswami 1992). That is, companies across the globe expand out of their national boundaries to become competitive in the global context (Laksiri 2013). This is because foreign markets, especially in emerging economies, offer opportunities to achieve swift corporate growth (Cavusgil, Ghauri, & Agarwal 2002). However, there also challenges associated with internationalization due to various factors. For instance, social, economic, political, legal, and cultural factors vary from one country to another (Buckley & Casson 1998). This implies that suitability of different international market entry strategies differ in varied situations at different times.

Research problem

The choice of international market entry mode has become a vital strategy decision for companies planning to internationalize (Sadaghiani, Dehghan & Zand 2011). This is because a company wishing to enter into international markets must formulate a crucial strategic decision on which international market entry strategy to use (Lymbersky 2008; Drabner 2003). The most common international market entry strategies encompass licensing, sole venture, exporting, and joint venture (Agarwal & Ramaswami 1992). Nonetheless, previous studies have failed to offer a generally accepted strategy for international market entry. Because of this, many companies experience critical challenges when making strategic choices regarding the international market entry strategy to use despite of increased ease of entering into foreign markets. Therefore, there is a great need to examine, identify, and implement an international market entry strategy that best fits each case.

Research objectives

The objectives of the research are:

1. To explore and describe the external environment of the host countries and how they affect internationalization of companies.
2. To identify and explain different international market entry strategies.

• To identify and explain factors which influence a company’s choice to choose a certain international market entry strategy.

1. To explain attributes and factors that make a certain international market entry strategy appropriate in a specific situation.

Research method

Method of collection

The study will employ mixed research methods. That is, both qualitative and quantitative methods of research will be used (Bernard 2013). Also primary and secondary data will be used in the study. Primary data will be collected using online surveys, which will consist of both closed-ended and open-ended questions. This will help to collect comprehensive data from the respondents. Face-to-face interviews will also be used to collect qualitative data from the respondents. The main reason for using these research methods is to achieve a more comprehensive and synergistic use of the collected data instead of relying on either of the two research methods (PCMH 2013). However, there are other various reasons of using both qualitative and quantitative research methods. First, using mixed research methods will permit comparison of qualitative and quantitative data, which will help to comprehend contradictions between qualitative findings and quantitative results (Creswell 2014). Convergent design will be used to validate qualitative and quantitative data by comparing findings from quantitative and qualitative sources (PCMH 2013). These two research methods will encourage reflection of respondents’ point of view. In addition, use of both quantitative and qualitative research methods will foster scholarly interaction. Secondary data will be collected by researching past studies and existing literature about topic under the study. There are numerous sources of secondary data including reviewed journals, books, and other publications.

Method of analysis

Analysis of data will also involve use of various methods, especially linear regression and ANOVA. A multiple linear regression model will be used in data analysis to determine the relationship between various variables (Campbell, D & Campbell, S 2008). That is, the model will be used to the relationship between a certain international market entry strategy and variables that affect the strategy in different cases. This analysis will help to determine and understand how different factors such as firm’s ownership advantages affect suitability of a given strategy in a specific situation. In addition to linear progression model, ANOVA (analysis of variance) method of data analysis will be also used (Reddy 2011). ANOVA will be used to analyze variance between two or more variables (Statistics Solutions 2017; Hedeker & Gibbons 2006). For instance, the study will employ ANOVA to analyze variables between different international market entry strategies and factors which influence a company’s choice to choose a certain international market entry strategy.

Research contributions

The study hopes to find that there different factors that influence companies’ strategic choices when selecting an international market entry strategy. Most important, the study hopes to find that effectiveness and suitability of various international market entry strategies often differ depending on various factors. The findings will contribute to existing literature by showing that there is no single international market entry strategy that fits for all. This will be very helpful, especially for managers and businesses, wishing to expand to foreign market. That is, managers will not be merely choosing a certain strategy to use when entering into new markets, but they will be considering and analyzing factors that would help them to choose the most appropriate international market entry strategy.

References

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Buckley, PJ & Casson, MC 1998, ‘Analyzing Foreign Market Entry Strategies: Extending the Internalization Approach’, Foreign Market Entry, vol. 29, no. 3, pp. 539-561.

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Lymbersky, C 2008, Market entry strategies text, cases and readings in market entry management, Hamburg, Management Laboratory Press.

PCMH 2013, ‘Mixed Methods: Integrating Quantitative and Qualitative Data Collection and Analysis While Studying Patient-Centered Medical Home Models’, PCMH Research Methods Series, [online], available at: https://pcmh.ahrq.gov/sites/default/files/attachments/MixedMethods_032513comp.pdf [accessed 11 January 2017]

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Sadaghiani, JS, Dehghan, N & Zand, KN 2011, ‘Impact of International Market Entry Strategy on Export Performance’, The Journal of Mathematics and Computer Science, vol. 3, no. 1, pp. 53-70.

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Vaidya, AK 2006,Globalization: encyclopedia of trade, labor and politics 1. 1., Santa Barbara, Calif., ABC-CLIO.