Foreign Market Adaptation

1.      Abstract of Foreign Market Adaptation

The purpose of this research study is to investigate the role and significance of adaptation practices contrasted with standardization designed for business performance in the foreign markets. The research is a secondary research data which will collect data from the literature review. According to research findings, an adaptation might not compulsory to frequently become a fundamental condition to achieve success. In reality, a company could reduce its disclosure to the foreign market adaptation by being dependent on its foreign business partners, with a purpose to take over the pressure along with adaptation costs (Rao-Nicholson & Khan, 2017).

2.      Introduction of Foreign Market Adaptation

The adaptation strategy to take part in the foreign market has been a subject matter within the foreign market entrance. Some researchers have stated that, in order to enter the foreign market, the companies need to adapt their marketing strategy, with a purpose to make sure for the sustainability of the international business operations. Yet, there is no constant support intended for the aspects leading this strategic option, and also about their general significances as well. For this reason, this research made to contribute the inadequate academic arguments around the company’s performance as a result of the adaptation itself by studying situational encouragements.

3.      Building Theoretical Models of Foreign Market Adaptation

A sociologically-oriented element of institutional theory discusses the subject matter around gaining acceptability in the foreign markets. For this reason, the companies have been establishing the processes, systems, along with the strategies that would enable them to survive from the pressures derived from their environment. Researchers have been supporting the standardization strategy to survive in the foreign market industry speculate that the companies might improve their business performance in the international business operations by saving the costs and remaining to the similar strategies to be used across the boundaries. In this manner, the companies would able to make sure a high level of reliability in the international market industries. Another study by presented Brouthers et al. (2005) presented that adaptations in competitive strategy to specific geographic zones consequence in better satisfaction for export performance (Brouthers, O'Donnell, & Hadjimarcou, 2005).

4.      Development of Hypothesis of Foreign Market Adaptation

Here some hypothesis is developed:

H1: The business performance in the foreign market affected by the foreign market adaptation.

H2 H2: There is a positive relationship between foreign market adaptation and business performance which moderated by institutional distance.

H3: There is a positive connection between the foreign market adaptation and the business performance which moderated by technological abilities.

5.      Methodology of Foreign Market Adaptation

Qualitative and quantitative data would be used to test the hypothesis. Statistical analysis and research justifications are required to be presented for the testing of the hypothesis. Secondary research data collected from the literature review will be used as a guideline in the whole research work. While primary and secondary research findings would be compared to conclude a final argument about the impact and role of cultural environment on businesses.  

6.      Results of Foreign Market Adaptation

According to the research findings, by constructing the legitimacy opinions of the institutional method, adaptation is specifically significant for the business performance if there is an increase of institutional distance. In addition to this, the acquirement of technological abilities will able to support the adaptation to become less of a priority due to the fact that technology is the main foundation of the company’s competitive advantage.

7.      Discussion of Foreign Market Adaptation

Research results are agreed to the conclusion of secondary research data and literature review. According to the research study of Ciszewska-Mlinarič and Trąpczyński (2019), adaptation as an ability of the internationalizing company might not always be the main requirement for a company to achieve success. In fact, with relying on its foreign business partner, a company could achieve its success to survive in the foreign market industry. In addition to this, in the context of technological abilities, adaptation has considered as an alternative besides a pure acquirement of technological advantage by the company due to arriving form an emerging market place (Ciszewska-Mlinarič & Trąpczyński, 2019). 

Conclusion and implication of Research of Foreign Market Adaptation

Our study has concluded that this foreign market adaptation could be considered as an asset of company’s competitive advantage. For this reason, the entrepreneurial method to adapt to the tough competition in the foreign market industry should be considered as a vital aspect that measures the successful entrance of the companies into the international market places. 

Limitations and Future Research    of Foreign Market Adaptation

The future research could focus more on the differentiation between various categories of host countries in evaluating the joint effects of adaptation, relational abilities, along with the technological capabilities of the business performance in the foreign market industry.