Country Selection for International Expansion: TOPSIS Method Analysis

Abstract

Using multi-criteria TOPSIS decision analysis, aimed at an optimal choice from a pool of alternatives between positive and negative ideal solutions respectively, subject to a relatively shorter geometric distance to the former solution, a step by step process is carried out to elaborate on how to successfully select a market for expansion. Dataset of 13 economic indicators covering a period from 2000 to 2013 has been used to evaluate the best suitable country among five African emerging markets for the expansion of an Ivorian company named FILTISAC. The results indicate that TOPSIS is a robust and efficient method that can be utilized in a multi-decision analysis process for country selection in view of foreign market expansion strategy. It is empirically determined that South Africa is the most suitable country for company expansion amongst those selected viz. Nigeria, Egypt, Morocco and Ghana.