An investigative analysis of the factors influencing degree of involvement in a foreign market.

Omar, Maktoba; Osei, Collins

Abstract

This paper focuses on factors that influence the degree of involvement in foreign markets. Using survey method, the research data was obtained from 112 usable responses from a sample of 500 UK companies which operate in at least two other countries. This represents a usable response rate of 22.4%, and consistent with similar research. The variables are grouped in terms of firm context (compe-tition, organisation structure, competitive advantages, degree of standardisation) and host country context (economic development, culture differences, regulation, political risk). Regression analysis models are used to test the relationship be-tween the independent variables and the degree of involvement. Findings strongly indicate a positive relationship between the degree of foreign market in-volvement and the level of competition and the degree of foreign market in-volvement and competitive advantage. Findings weakly support the hypothesis of a positive relationship between the degree of foreign market involvement and economic development. There is weaker evidence to show a negative relationship between the degree of foreign market involvement and the cultural dimensions of individualism and power distance as proposed by Hofstede.

Citation

Omar, M., & Osei, C. (2015). An investigative analysis of the factors influencing degree of involvement in a foreign market. Transnational Marketing Journal, 3, 45-60

• Journal Article Type: Article
• Acceptance Date: Mar 15, 2015
• Publication Date: 2015-03
• Deposit Date: Jun 9, 2015
• Publicly Available Date: Jun 9, 2015
• Journal: Transnational Marketing Journal
• Print ISSN: 2041-4684
• Peer Reviewed: Peer Reviewed
• Volume: 3
• Pages: 45-60
• Keywords: Foreign markets; degree of involvement; firm context; competitive advantage.
• Public URL: http://researchrepository.napier.ac.uk/id/eprint/8611
• Publisher URL: https://journals.tplondon.com/index.php/tmj/article/view/408/401