INTERNATIONALIZATION DECISION IN PT. SUNPACK INDONESIA: THE CHALLENGE OF SELECTING INTERNATIONAL MARKET AND MARKET-ENTRY MODES

A new global economy now is emerging to confront business enterprises with
extraordinary threats to their survival, coupled with unprecedented opportunities
for growth and profits. In this new global economy, no market is forever safe from
foreign competition. Even though companies stay at home country, sooner or later
they learn from hard experience that there are no domestic markets, only global
markets, and companies should plan strategically for growing and survive in a
world of global competition through geographic expansion (internationalization).
This study focuses on how a company has made internationalization decision. In
order to gain a better understanding of the subject, research questions concerning
the motives of internationalization, international market and market entry mode
selections were formulated.
Qualitative research approach using a single-case study was conducted, and the
research site was PT. Sunpack Indonesia a packaging machine manufacturer
located in Sidoarjo. The form of the case study use is explanatory research, builds
on previous knowledge and theories in order to answer the research questions.
Findings show that PT. Sunpack internationalization decision motivated by proactive
and reactive motivations, and undertaking sequential steps of screening process
in target market selection with direct export and contract manufacturing as the
entry mode. Furthermore, a revision of theoretical proposition also presented.
Keywords: internationalization, international market, case study, explanatory