International market selection process : an investigation of the relevance of business operating environment

Different researchers have recommended different decision frameworks for international market selection. As parts of those decision frameworks, most researchers have recommended for the evaluation of macro-environmental and business operating environmental variables. However, few attempts have been made so far to empirically test those frameworks. This study provides a partial test of those frameworks. Specifically, it looks at the host country's business operating environmental variables recommended by different researchers. Using both exploratory and confirmatory factor analysis techniques it identifies the operating environmental factors considered by the successful Australian international businesses in their international market selection process. Three constructs and their measurement variables identified through literature review has been tested. The constructs are: target country's cost indicators; structutral compatibility indicators and policy indicators.