TITLE:
Application of PROMETHEE-GAIA Method in the Entry Mode Selection Process in International Market Expansion
AUTHORS:
Assamoi Valerie Christian, Yabin Zhang, Coulibalykigbajah Salifou
KEYWORDS:
Entry Mode Selection, PROMETHEE-GAIA Method, Market Expansion
JOURNAL NAME:
Open Journal of Business and Management,
Vol.4 No.2,
April
19,
2016
ABSTRACT: Selecting an entry mode for a new organization or expansion is of vital importance to a decision
maker, as many potential qualitative and quantitative criteria are to be considered. Entry mode
decision is the most critical decision in international expansion; it can affect the performance of
the company in the future. This paper solves an entry mode selection problem using PROMETHEE
(Preference Ranking Organization Method for Enrichment Evaluation) and GAIA (Geometrical
Analysis for Interactive Aid) method which is an effective multi-criteria decision-making (MCDM)
tool and is used to deal with complex problems. In order to follow this technique, an investigation
has been operated for comparing 5 entry modes such us exporting, franchising, licensing, joint
venture and foreign direct investment (FDI) according to 15 criteria. The results, obtained by multi-
criteria evaluation, clearly show that this method of entry mode selection for an Ivorian company
named FILTISAC is successful and applicable. It is empirically determined that joint venture
is the most suitable entry mode for company expansion amongst those selected.