International market selection: an application of hybrid multi-criteria decision-making technique in the textile sector

Abstract

Purpose

The selection of an international market (IMS) is a prime factor in the success and growth of a company. Therefore, the purpose of this study is to consolidate and apply a systematic methodology that contributes toward the evaluation of international markets and promotes entry into the export market of Antioquia’s textile companies.

Design/methodology/approach

Through a systematic literature review, the criteria and sub-criteria involved in the IMS process are identified and a total of 5 general criteria and 23 sub-criteria are selected. A hybrid approach is used to address the gap. In total, a multiple case study of 11 companies from different range of export values are selected. Data analysis is conducted using two multiple criteria decision-making (MCDM) models, namely, the analytic hierarchy process for weighting the factors and the technique for order of preference by similarity to the ideal solution for the country selection ranking.

Findings

The results demonstrate the applicability of the hybrid MCDM technique to improve IMS decision-making in the textile sector and other sectors. It is found that Canada, Belgium and the UK are the best destinations for textile exports with a selection score of 0.7716, 0.7488 and 0.7337, respectively. The sub-criteria belonging to the dimensions of trade barriers, economic factors and costs are the main factors affecting the export of a textile-clothing product.

Research limitations/implications

The possibility of achieving a generalized result through this case study is not possible, but the methodological application carried out is a novel for the selection of markets in the Colombian case and within the literature available in the domain.

Practical implications

From the managerial point of view, firms associated with trade have a broader vision when looking for new markets. Emerging entrepreneurs can equip themselves to enter the international market. Practitioners and policymakers can also use this methodology, which will allow them to evaluate new markets to outline promotional strategies for positioning products abroad.

Social implications

To facilitate the selection of international markets for enterprises.

Originality/value

The contribution of the study is twofold. First, the combination of techniques will allow wider support for the selection of markets and act as a decision support system. On the other hand, this is the first time that such a methodology is used for IMS in the exporting sector not only in Colombia but also in Latin America. Finally, the detailed methodological process described in the study allows both academicians and decision-makers to replicate the study in other contexts and scenarios.

Citation

Vanegas-López, J.G., Baena-Rojas, J.J., López-Cadavid, D.A. and Mathew, M. (2021), "International market selection: an application of hybrid multi-criteria decision-making technique in the textile sector", Review of International Business and Strategy, Vol. 31 No. 1, pp. 127-150. https://doi.org/10.1108/RIBS-07-2020-0088