Influence of artificial intelligence (AI) on decision-making for market-entry strategies in emerging economies

• Main Author: DESHPANDE, Tejas
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: International Business; Emerging Markets; Business Decision-making; AI Analysis model.; Artificial Intelligence and Robotics; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/etd_coll/642; https://ink.library.smu.edu.sg/context/etd_coll/article/1640/viewcontent/GPBA_AY2019_DBA_Tejas_Deshpande.pdf
• Institution: Singapore Management University

International firms with growth-oriented business models face a complex array of factors when planning to enter emerging markets. These markets are characterized by dynamic socio-economic and geopolitical conditions, often resulting in limited market intelligence and a fragmented understanding of the business ecosystem. To succeed, firms must align their short-term objectives and long-term strategic goals with the specific characteristics of these target markets. Decision-making in such environments is fraught with uncertainty and is critical in determining the success or failure of market-entry strategies. While business leaders rely on their cognition and heuristics to navigate these challenges, the complexity and volume of relevant factors make it impractical to manually evaluate and prioritize each parameter. Any concerns and questions about these actor’s market-entry strategies may adversely affect the firm’s growth and expansion plans with huge financial implications. This research explores the adoption of advanced technologies in real-world business decision-making, supporting the development of an AI based decision analysis model. This model integrates human expertise with machine learning analysis to enhance decision-making capabilities, enabling business leaders to make time-sensitive, more informed, and calibrated market-entry decisions, to derive optimal business strategies. By leveraging AI-ML to evaluate and validate critical parameters and to make prudent decisions, firms can optimize their expansion strategies, maximize returns, and gain competitive edge in emerging markets. The proposed conceptual framework not only improves decision quality but also supports business’ agility in navigating the complexities of these high-potential environments.