A CONCEPTUAL STUDY ON THE FACTORS AFFECTING FOREIGN MARKET ENTRY DECISION

Abstract

Decisionmaking on foreign market entry is regarded as a complex process, which includesmany antecedent factors to be evaluated together. A wrong decision may preventmultinational enterprises from exiting foreign markets. As a matter of fact,there is a return risk potential on investments and resources (capital, humanresources and technology) used in foreign market entry. Due to the importanceof organizational longevity in sustaining, this study aims to determine factorsaffecting foreign market entry decision. To this end, the authors apply to theliterature review and synthesis techniques and hence identify nine antecedentfactors affecting foreign market entry decision.