Business and Management
Submitted By Jergen
The International Market Selection Behavior of Thai Rice Exporters1
ABSTRACT This study focuses on the international market selection behaviour of firms within the Thai rice exporting firms located in metropolitan Thailand, an area that has previously attracted little academic research attention. In its broadest context, the research attempts to measure and explain the extent to which managers of exporting firms systematically evaluate their foreign market selection alternatives. The main research question to be asked and addressed is: “Can international market selection behaviour be measured on a scale and, if so, is that scale a continuous (unidimensional) one which ranges over both ‘opportunistic’ and ‘systematic’ market selection behavior?” A quantitative research methodology has been used in this study and data were collected by a questionnaire that was both researcher-administered and self-administered. The results from this study indicate that international market selection (IMS) behavior cannot be measured on a continuous scale but tends to be multidimensional and better represented by two separate sub-scales, i.e. ‘systematic’ and ‘opportunistic’ behavior. Two measurement scales were thus developed and labeled SSB (systematic market selection behavior) and OSB (opportunistic market selection behavior). The scales could be shown to be reliable and valid. INTRODUCTION When entering a new or expanded country market, an exporting firm faces a number of important strategic decisions. According to Root (1998), international market selection is the first and most significant step in an export strategy. Selection of overseas markets and entry modes lies at the very heart of any international strategy (see Koch 2001). The wrong choice of markets can be costly and may place the firm in an unfavorable strategic position (Welch & Wiedersheim-Paul 1980;...