A hybrid model for export market opportunity analysis

Purpose - The purpose of this paper is to propose a new model for export market opportunity analysis by combining the marketing-based overall market opportunity index (OMOI) with the economic-based gravity model in order to more accurately assess export market potential, in total and for specific in...

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Bibliographic Details
Published in:International marketing review 2011-04, Vol.28 (2), p.163-182
Main Authors: Ye Sheng, Shirley, Mullen, Michael R.
Format: Article
Language:English
Subjects:
Economic models
Economic theory
Economics
Emerging markets
Exports
Foreign investment
International markets
International trade
Market entry
Market potential
Marketing
Studies
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Summary:Purpose - The purpose of this paper is to propose a new model for export market opportunity analysis by combining the marketing-based overall market opportunity index (OMOI) with the economic-based gravity model in order to more accurately assess export market potential, in total and for specific industries.Design methodology approach - Variables from the gravity and OMOI models are used to analyze export market opportunities for specific industries. Findings - Market size, economic intensity, geographic and language distance, and regional trade agreements (RTAs) are found to be strong predictors of export market attractiveness from a US firm's perspective. Foreign direct investment (FDI) is found to act as both a substitute for and a complement to exports. Cultural distance, based on Hofstede, is not a significant predictor for exports.Originality value - The authors' hybrid model extends previous OMOI models and is applied to industry-level analysis.
ISSN:0265-1335
1758-6763
DOI:10.1108/02651331111122650