Simultaneous determination of entry timing and involvement level: An optimization model for international marketing

ABSTRACT

The rapidly increasing globalization of economic activities in recent years has expanded opportunities for the marketing of goods and services abroad (Douglas and Craig 1995; Hassan and Kaynak 1994). As foreign markets become increasingly important contributors to a firm's revenue and profits, global marketing strategy is becoming an integral part of companies' strategy mix (Douglas and Craig 1995; Kaynak 1982; Ryans 1988; Kumar and Subramaniam 1997; Stopford and Wells 1972; Terpstra and Sarathy 1994; Root 1994). Once a company has chosen which global market to enter, it must then decide on the appropriate entry strategy for that market (Yip, Loewe, and Yoshino 1988). Among the most important decisions an international company has to make are the timing of market entry and the appropriate level of involvement (Aharoni 1966; Buckley and Casson 1981; Pan, Li, and Tse 1999; Terpstra and Sarathy 1994). Entry timing and involvement decisions have important implications for the long-term and short-term financial positions of the firm, affecting all...