Identifying and prioritizing international markets entry strategies in plastics industry using analytic hierarchy process

The purpose of this research is to identify and prioritize international markets entry strategies in plastics industry.

The research method of the study is explorative-descriptive and its statistical population includes managers and officers working in small and medium-sized enterprises in the plastic industry, which are the members of the Bojnord Chamber of Commerce, Industries, and Mines. The sampling method of the study consists of snowballing sampling and purposive sampling, and the sample size is equal to 19 experts. Data collection instrument was questionnaire, which its validity and reliability were confirmed using content validity ratio and inconsistency ratio mechanism, respectively. To analyze data, Analytic Hierarchy Process (AHP) technique was used.

The findings indicate that international markets entry strategies in plastics industry consists of seven strategies, including export, license, management contract, contract manufacturing, turnkey operation, foreign direct investment and strategic alliances, and criteria to select these strategies include four categories of factors related to host country, factors related to product, factors related to company, and factors related to home country. Furthermore, the research findings indicate that the most important criterion to select international markets entry strategies is factors related to company and the best international markets entry strategy is export.

Originality/Value: 

The findings of this research help managers to evaluate, prioritize, and select international markets entry strategies using AHP technique in an effective and efficient manner.