What is it about?
Identifying new international markets for business is complex and risky. To date, few research studies have adopted theoretical approaches. Researchers here have identified a concept known as institutional theory, which can help reduce the risk of selecting new international markets to enter, by analysing formal and informal structures within the country as well as its growth potential. The research suggests the technique has potential for future applications.
Featured Image
Why is it important?
Past research in this area has been fragmented, with lots of overlapping topics obscuring the picture. As such, research has not historically tended to be underpinned by theory. The researchers here wanted to challenge that status quo by demonstrating the predictive strength of a specific theory, institutional theory
Perspectives
Institutional theory suggests that, over time, a country creates formal and informal structures, by way of rules, conventions, and routines, which become established as authoritative guidelines for corporate behaviour. This creates legitimacy for firms which in turn leads to superior performance. Here we apply this theory to the global direct selling industry and find that South America, Asia and Eastern Europe identified as the very attractive markets for direct selling. The theory could be applied to other industries
Professor lance E Brouthers
Kennesaw State University
Read the Original
This page is a summary of: Institutional theory and international market selection for direct selling, Marketing Intelligence & Planning, June 2015, Emerald,
DOI: 10.1108/mip-02-2014-0033.
You can read the full text:
Contributors
The following have contributed to this page
