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The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance

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posted on 2023-08-30, 14:58 authored by Giovanna Magnani, Antonella Zucchella, Dinorà Floriani
The aim of this paper is to highlight the importance of the firm’s strategic objectives regarding the choice of countries for foreign expansion, complementing the existing literature on the internationalisation process. Through a multiple case study methodology, we conduct a comparative analysis of three Brazilian ventures that have internationalised in Italy, and three Italian firms that have internationalised in Brazil, seeking to investigate the firms’ decisions on the selection of foreign markets. We consider jointly the objective aspects of distance, the overall perceptions of the decision-makers in relation to the differences between the domestic and (potential) host countries, and the firm’s strategic objectives. This research contributes to International Business studies by revealing the role of firm-specific strategic objectives as determinants of foreign market selection, in addition to, or even on top of, the dimensions of objective distance and psychic distance.

History

Refereed

  • Yes

Volume

27

Issue number

1

Page range

1-20

Publication title

International Business Review

ISSN

0962-9262

Publisher

Elsevier

File version

  • Accepted version

Language

  • eng

Legacy posted date

2017-11-08

Legacy creation date

2017-11-05

Legacy Faculty/School/Department

ARCHIVED Lord Ashcroft International Business School (until September 2018)

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