Edinburgh Napier University

  This paper focuses on factors that influence the degree of involvement in foreign markets. Using survey method, the research data was obtained from 112 usable responses from a sample of 500 UK companies which operate in at least two other countries. This represents a usable response rate of 22.4%, and consistent with similar research. The variables are grouped in terms of firm context (compe-tition, organisation structure, competitive advantages, degree of standardisation) and host country context (economic development, culture differences, regulation, political risk). Regression analysis models are used to test the relationship be-tween the independent variables and the degree of involvement. Findings strongly indicate a positive relationship between the degree of foreign market in-volvement and the level of competition and the degree of foreign market in-volvement and competitive advantage. Findings weakly support the hypothesis of a positive relationship between the degree of foreign market involvement and economic development. There is weaker evidence to show a negative relationship between the degree of foreign market involvement and the cultural dimensions of individualism and power distance as proposed by Hofstede.