Market entry and market entry mode decisions: the case of the Saudi insurance market, 2003-2017

Abstract

The literature related to market entry and market entry modes does not clearly state the overall determinants of market entry and market entry mode decisions. With more focus on external factors, external and internal factors are the main determinants this discipline of knowledge has covered. Within these two determinants, a large number of factors have been found to have an influence on market entry and market entry mode decisions. However, within the literature, external and internal factors vary from one study to another; these variations are due to the limited theoretical perspective of most studies. Furthermore, these studies tend to include different markets and industries, although there is empirical evidence that factors vary from one market or industry to another. With such limitations, each study highlights a specific stream of factors that differs from what other studies have found. Moreover, there is almost total ignorance about a third determinant, which is the managerial perspective that might influence market entry and market entry mode decisions. As a result, there is no clear guideline for main determinants that should be followed when investigating a given context or industry. Therefore, the main aim of this thesis is to create such a guideline, providing a theoretical framework of all factors that might influence market entry and market entry mode decisions.

Focussing on the Saudi insurance market from 2003 to 2017, this qualitative study uses the semi-structured interviews of 36 participants. These participants represent a combination of three groups: CEOs and general managers from 33 insurance companies, participants from the main official insurance regulatory agency (the Saudi Arabian Monetary Agency, or SAMA), and independent actuaries from two advisory offices. The data were analysed using a thematic analysis.

The findings of this research improve the state of knowledge in different areas. Overall, three determinants of market entry and market entry mode decisions are investigated and found to be influential: external and internal determinants (both investigated empirically) and managerial perspectives (investigated theoretically). This confirms the need for theoretical integration when studying market entry and market entry mode decisions. More specifically this thesis confirms that following the country- and industry-specific approach is better for investigating external and internal factors. Moreover, this study develops a holistic approach to screening external factors for a specific industry within a specific context or country. Within this holistic approach, the factors are classified hierarchically in a multilevel construct. Finally, two frameworks result from this research: one is a conceptual framework for practical purposes, and the other is a theoretical framework for contextual purposes.

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ORCID for Alasdair Marshall: orcid.org/0000-0002-9789-8042

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