Key success factors of international market development

Abstract

Purpose The purpose of this paper is to develop an evaluation model to determine the relative weights of key factors influencing international market development (IMD) success through analysis network process (ANP) during group decision-making. An empirical case of the Taiwan bulk shipping industry is used to illustrate the feasibility of the proposed approach. Design/methodology/approach The literature review is performed to generate 20 key success factors (KSFs) along with four factor categories in IMD (such as organizational capability, environmental scanning, international strategy and internationalization behavior). Then, ANP is applied to develop an evaluation model that prioritizes the relative importance linking the above four factor categories with 20 evaluated KSFs. Findings With respect to the final weights for factor categories, “international strategy” and “environmental scanning” are the two most important criteria, followed by “organizational capability” and “internationalization behavior”. The results also showed that by reviewing the global weights of the 20 KSFs of IMD, “service as competitive advantage”, “market potential” and “risk taking” have the highest rankings. Practical implications The findings indicate that firm expansion into international markets typically depends on a successful international strategy. Hence, to enhance their global market competitiveness, Taiwan bulk shipping firms should focus their efforts on planning international market entry strategy and prioritizing shipping services with high-potential target markets. Originality/value Theoretically, the study results can provide both theoretical basis and empirical evidence, indicating the relative weights and priorities of KSFs of IMD for the Taiwan bulk shipping industry. From the managerial perspective, the analytical results can help managers focus on main factors and identify the best policy to improve their IMD practice and performance.