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Doing business abroad: utility function model for country selection in preliminary screening phase

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Abstract

The paper presents the utility function model applicable within the first stage of starting a new business abroad. An applied auxiliary mathematical model was constructed to assist in the preliminary screening phase of the country selection process. The model is based on a comparison of countries according to utility function. This paper also illustrates a short example, where selected economic criteria serve as input data for determining the utility values of particular countries. The suggested model is parsimonious, easy to understand and, within the above mentioned context, potentially suitable for entrepreneurs from various economic sectors.

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Notes

  1. Under the Mode of Entry, we understand a particular strategy applied by a company in compliance with a set of legal and economic options and limitations valid on a particular foreign market.

  2. The overview shown in Table 1 is elaborated according to Gould (2002) and Swoboda et al. (2007), hence not all of the authors mentioned there are listed in the references.

  3. The overview shown in Table 2 is elaborated according to Swoboda et al. (2007), hence not all of the authors mentioned there are listed in the references.

  4. When selecting criteria (indicators), we recommend a thorough study of relevant literature. An overview of the literature relating to criteria selection that may be helpful for decision-makers is discussed in the previous section of this article.

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Authors and Affiliations

  1. The University of Economics in Bratislava, Kosice, Slovak Republic

    Lucia Bosáková, Marek Andrejkovič & Zuzana Hajduová

  2. University of Prešov in Prešov, Prešov, Slovak Republic

    Matúš Kubák

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  1. Lucia Bosáková
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  2. Matúš Kubák
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  3. Marek Andrejkovič
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  4. Zuzana Hajduová
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Correspondence to Matúš Kubák.

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Bosáková, L., Kubák, M., Andrejkovič, M. et al. Doing business abroad: utility function model for country selection in preliminary screening phase. Cent Eur J Oper Res 23, 53–68 (2015). https://doi.org/10.1007/s10100-013-0328-1

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