The Scope of Sustainability in an Orientation-based Approach to Penetration of Foreign Markets

Abstract

Purpose: The demand for and duration of international logistics are the main drivers of logistics sustainability. When a market entry strategy requires no or less necessity of logistics, then such an approach is hypothetically to leave less carbon footprint, which means such strategy has a higher degree of sustainability factor than the others. Whereas when the entry strategy requires a long duration of transportation in international logistics, then such an approach is to leave more carbon footprint, which means that such strategy is less inclined to sustainability factor. In other words, when the market is close to the place of production or the place where raw materials are available, then in such cases, the need for international logistics is less or, sometimes even nil. The purpose of the research is to find the degree of sustainability factors in different strategic business orientations of companies entering overseas markets and second to hierarchy them.

Methodology: An exploratory research design is used in the research study. Research methodology is based on secondary sources involving and analyzing existing data and literature to draw conclusions and support the research objectives. Secondary sources include books, journals, reports, websites, and other published materials by developing a search strategy that helped to identify relevant materials.

Results & Outcome: International Logistics plays a vital part role in market entry strategies based on orientation. Geocentric Orientation has a significant role in international logistics, while ethno and regio-centric orientations have no or least contribution. Market entry strategies such as ethno and regio centric leave a smaller carbon footprint as they require no or fewer international logistics, while geocentric orientation strategies leave a larger carbon footprint when compared with other penetration strategies – ethno and regio. Between, ethno and regio centric orientations, ethno has a higher degree of sustainability factor than regio.

Originality: A exploratory research to understand the role of international logistics in different market penetration strategies based on orientation and carbon footprint and sustainability factors thereof.

Type of the Paper: Exploratory research.