International Market Selection of Home Region Oriented MNEs : An Exploratory Case Study into Frameworks and Challenges in Today’s Business World

Abstract: This study aims to explore the factors, aspects, and trends considered in the International Market Selection (IMS) process. Consequentially, it develops a deeper understanding of the challenges faced by home region oriented multinational enterprises (MNEs) during international expansion. The research question focuses on how home region oriented MNEs approach and execute market selection within the internationalization process. The importance of IMS is emphasized, as many MNEs struggle with Internationalization, and only a few achieve global presence. While previous academic literature highlighted the significance of market selection, a comprehensive model encompassing all relevant criteria on a macroeconomic level was lacking. To address this gap, in-depth interviews are conducted with practitioners and experts to gather qualitative insights. The main findings reveal that MNEs primarily face three key challenges when internationalizing and selecting new markets: Company internal aspects, product market aspects, as well as the macroeconomic situation. This thesis focuses on the macroeconomic assessment aspect and develops a holistic, transparent, applicable, and current framework: the multicriteria decision making framework. The framework bases on 53 indicators, structured according to the PESTLE model and helps selecting the right market based on macroeconomic conditions. To demonstrate the framework's applicability, a case study is conducted in collaboration with a global chemical company targeting the Latin American market. Using the framework, a clear recommendation on country attractiveness is provided. The company could leverage this information to maintain or intensify operations in high-scoring countries such as Chile, Mexico, or Brazil, while exercising caution or avoiding low-scoring countries such as Argentina or Venezuela. Accordingly, does this study not only explore behaviors and challenges faced by home region oriented MNEs but also introduce an applicable framework for IMS in the real business world. The framework's practicality makes it valuable for future research and contributions in the field of IMS.