Modeling the Country Selection Decision in Retail Internationalization
Abstract:This paper aims to develop a model that assists the
international retailer in selecting the country that maximizes the
degree of fit between the retailer-s goals and the country
characteristics in his initial internationalization move. A two-stage
multi criteria decision model is designed integrating the Analytic
Hierarchy Process (AHP) and Goal Programming. Ethical, cultural,
geographic and economic proximity are identified as the relevant
constructs of the internationalization decision. The constructs are
further structured into sub-factors within analytic hierarchy. The
model helps the retailer to integrate, rank and weigh a number of
hard and soft factors and prioritize the countries accordingly. The
model has been implemented on a Turkish luxury goods retailer who
was planning to internationalize. Actual entry of the specific retailer
in the selected country is a support for the model. Implementation on
a single retailer limits the generalizability of the results; however, the
emphasis of the paper is on construct identification and model
development. The paper enriches the existing literature by proposing
a hybrid multi objective decision model which introduces new soft
dimensions i.e. perceived distance, ethical proximity, humane
orientation to the decision process and facilitates effective decision
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