Foreign market entry mode of technology-based companies using multi-criteria decision-making techniques

Technology-based companies have a good capacity to enter foreign markets due to their technological advantages. The purpose of this study is to provide a decision-making method to prioritize foreign entry modes. Therefore, the research method is a combination of qualitative approach in criteria identification and quantitative approach in prioritizing criteria and entry modes. Frist, by reviewing the research background, influential components on entry mode choice have been identified, including internal factors (organization and its products), and external factors (internal market and foreign market). Then, using the best-worst method the effective criteria for entering foreign markets are ranked. The results show that “product differentiation” and “networking” are the most important ones for these firms. the experts’ view. This is in line with the technological advantage of these companies and on the other hand the limited resources of small and medium companies for foreign investment. Second, from the perspective of a technology-based company with extensive international activities in the field of advanced machinery, entry modes are prioritized using TOPSIS. The results showed that the first choice is the establishment of a wholly owned subsidiary. Actually for the company that has gone through the early stages of internationalization, this method is preferred, both for providing protection of the company's proprietary technology, provides the basis for exports to neighboring countries; also it can indicate that export restrictions from the origin of Iran, increases the orientation of firms towards more risky entry methods.