Environmental determinants of export decision making: conceptual issues regarding the domestic market

The domestic market environment is host to complex phenomena that affect, and are affected by, the actions and activities of both exporting and non‐exporting firms. In this regard, a significant degree of research attention has been devoted to overseas competitive environments and the nature of market selection made by exporting firms. However, very limited research work has been dedicated to the domestic market environment confronted by the non‐exporting firm and its influence on export strategy development. It is argued there that domestic market environment can significantly affect the “fit” between the resources and capabilities of the firm and the overseas opportunities and threats that are perceived. Accordingly, this paper: reviews the literature associated with the domestic market environment, firm internationalization, the concept of “strategic fit” and the factors and influences present in the domestic market environment; and, presents a series of conceptual propositions concerning the respective relationships between competitive intensity, technological turbulence and product‐market turbulence, and export strategy development at the pre‐export level.