Foreign market entry mode decision – approach based on stochastic dominance rules versus multi-actor multi-criteria analysis
Foreign market entry mode decision – approach based on stochastic dominance rules versus multi-actor multi-criteria analysis

Summary/Abstract: The choice of entry mode is a critical decision for a company and numerous empirical studies have focused on this issue. However, most of them refer to the determinants of the entry mode choice and relatively few of them explore methods of selecting the appropriate entry mode considering the huge amount of various factors that determine the foreign market entry mode choice. The high complexity of the decision-making process and the huge number of factors that affect the entry mode decision mean that the entry mode choice is considered as a multi-criteria decision-making problem. The study in this paper compares the application of two multi-criteria decision aiding (MCDA) approaches that can be employed to solving the problem of entry mode selection: outranking methods with stochastic dominance (SD) rules and multi-actor multi-criteria analysis (MAMCA). The problem is illustrated by the case of a dynamically developing company that manufactures and distributes hygiene, cosmetic and medical products for women, children and adults.

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