The purpose of this study is to examine entry mode selection for new foreign markets, focusing on enhancing dynamic capabilities within the digital content creative industry, a growing sector for Iranian emerging market firms. As entering new markets is vital for digital content firms, these firms need to gain competitive advantages by developing dynamic capabilities.
This research uses criteria for entry mode choice from a dynamic capability perspective and evaluates them using the DEMATEL method with fuzzy sets. This method empowers handling uncertainty in decision-making through more precise calculations and suits the ranking of the criteria under the ambiguous nature of entering into the new markets. In the next step, the entry modes are ranked using the TOPSIS method to determine which options best empower exporting firms’ capabilities in international markets.
The results of this study highlight “networking with stakeholders” and “developing and adapting business models” as critical criteria by DEMATEL method. Consequently, managers should create strategies for network development and be ready to adjust their business plans when entering new markets. Ultimately, the findings of this study and the use of the TOPSIS method suggest that “joint ventures” are the most effective choice for sustaining the dynamic capabilities of exporting creative firms.
This study guides digital content firms on key dynamic capabilities and optimal entry modes for competitive advantage abroad. This study also informs policymakers to design targeted export programs that align with firms’ capabilities and market entry strategies, supporting successful international expansion.
This research contributes to understanding entry mode selection in creative industries by addressing market uncertainties and required dynamic capabilities.
