Advances in Consumer Research
Issue 4 : 3802-3808
Research Article
Strategic International Expansion as a Mechanism for Mitigating Government Influence: A Marketing Perspective
 ,
1
Assistant Professor, Department of Commerce, Faculty of Science & Humanities SRMIST, Ramapuram Chennai.
2
Associate Professor Department of Commerce, Faculty of Science & Humanities SRMIST, Ramapuram Chennai.
Received
Aug. 5, 2025
Revised
Aug. 16, 2025
Accepted
Sept. 8, 2025
Published
Sept. 15, 2025
Abstract

This research looks at how firms may mitigate the impact of govern ments on their operations via smart international growth, especially when it comes to marketing. The study investigates how diversifying into global markets might lessen reliance on the policies of a single government by examining the relationship between corporate activities and governmental regulation. Using a mixed-method approach, the research combines industry expert interviews with quantitative surveys. The findings suggest that companies who implement strategies for international growth encounter fewer regulatory limitations and increased market prospects, resulting in the development of more comprehensive and durable marketing plans. The results emphasise how crucial flexibility and diversity are in global marketplaces. By supplying actual proof of the advantages of expanding internationally as a tactical reaction to governmental influence, this study adds to the body of knowledge already in existence and provides useful guidance for companies looking to maximise their marketing expenditures in a globalised market.

Keywords
INTRODUCTION

In the ever-expanding global economy, enterprises encounter a multifaceted range of obstacles and prospects. Government influence, which takes the shape of rules, laws, and initiatives, is one of the most important elements influencing the business climate. Government intervention may sometimes promote stability and economic progress, but it can also place serious limitations on how businesses operate and make strategic decisions (Cuervo-Cazurra, 2020). Government-business ties have long been a topic of academic study and practical concern. This connection has been even more complicated in recent years because of things like rising prominence of developing markets, economic nationalism, and geopolitical concerns. Consequently, businesses are increasingly looking for ways to stay competitive and seize expansion opportunities while navigating the complicated terrain of government influence (Darendeli, 2019).

 

Strategic international growth is one such tactic that has gained traction. Businesses may be able to lessen their reliance on any one government and lower the dangers connected with undue political influence in their home markets by spreading their activities across many nations. This strategy is in line with the more general idea of political risk management in international business, which is now something that multinational firms must take into account (Demirbag, 2019). The marketing viewpoint on this matter is especially pertinent as it covers important facets of how businesses present themselves, interact with clients, and generate value in many global settings. Effective international growth depends on marketing techniques, which enable businesses to adjust to local market circumstances while preserving a consistent worldwide brand identity. Additionally, marketing analytics may guide businesses through the intricate interactions that exist between consumer behaviour, government influence, and competitive dynamics in various countries (Gao, 2021).

 

Research Objectives

To achieve this overarching goal, the study pursues the following specific objectives:

  • To identify significant areas where government influence affects marketing strategy and corporate operations in varied circumstances.
  • To examine the motives, procedures, and effects of strategic international growth in response to government involvement, in particular how corporations use marketing capacities.
  • To evaluate the success of foreign growth in reducing government influence, including both advantages and hazards.
  • To assess important marketing strategies and methods used by foreign corporations to reduce government influence, including market access, brand positioning, and consumer engagement.
  • To examine how corporations balance local adaptability and worldwide uniformity in marketing when growing overseas in response to government influence.
  • To examine the impact of digital marketing and technology on international growth and government influence, examining potential and problems.

 

Significance of the Study

This study is important for international business, marketing, and strategic management academia and practice. This study bridges international business literature on political risk management with marketing research on foreign growth strategies. The study integrates these viewpoints to better understand how corporations might negotiate global government- business partnerships. Future study in this multidisciplinary field will build on a conceptual framework combining worldwide expansion, government influence mitigation, and marketing techniques. The insights will aid foreign market selection, entry method, and marketing mix adaption decisions. The report will also advise corporations on balancing government interactions with strategic autonomy in worldwide operations. This study fills a significant gap in our knowledge of how firms might prosper in a complicated global context by investigating strategic international growth as a marketing strategy to mitigate government impact. The findings will promote academic research, guide firms, influence policy debates, and improve business education in this critical sector.

RESEARCH METHODOLOGY

From a marketing standpoint, this study uses a mixed-methods approach, integrating quantitative and qualitative research approaches, to thoroughly investigate the connection between aggressive global growth and the reduction of government interference. This study employs a descriptive and exploratory research strategy with the overarching goal of illuminating trends that could guide international company tactics.

 

Two stages make up the study's framework. Quantitatively examining secondary data for overarching patterns and relationships is the initial step. In order to provide more context and depth to the quantitative results, the second step involves collecting primary data via interviews and surveys.

 

Data Collection Primary Data:

Current, relevant research data must be collected from primary sources. An online survey is sent to marketing executives and senior management of MNCs in several sectors. In-depth interviews with 20 high-level executives from MNCs that have expanded internationally supplement the survey results. These interviews give comprehensive, qualitative data on international growth and government impact decision-making, problems, and results. Video conferencing accommodates geographical limits and records interviews with participant agreement for subsequent study.

 

Secondary Data:

Secondary data from credible sources provides context and history for the study issue. To establish the theoretical framework and identify literature gaps, JSTOR, ScienceDirect, and Google Scholar peer-reviewed journal publications and conference papers are evaluated. McKinsey, Boston Consulting Group, and World Bank/OECD reports are analysed for industry trends and macroeconomic statistics. To understand regulatory settings and policy developments, national and supranational government papers and reports are analysed. Bloomberg and Thomson Reuters gather MNC financial data, including revenue breakdowns by area, to follow worldwide growth. To find case studies and monitor government effect on firms, Financial Times and Wall Street Journal are searched.

 

Sampling Method

The quantitative component of the research uses stratified random sampling to choose survey participants. Industry sectors (technology, manufacturing, finance, retail) and firm size (small, medium, big) divide the population. This represents different company kinds and sizes. Power analysis determines the sample size based on the desired confidence level (95%) and margin of error (5%). Given these factors and MNC population estimates, a survey sample size of 384 is recommended.

 

Data Analysis Techniques

The research analyses and interprets data using various methods. Central tendency and dispersion are used to summarise factors including perceived government influence, foreign growth, and marketing plan performance. Pearson's correlation coefficient analyses correlations between factors like worldwide expansion and government influence. This method models the link between government influence and several independent variables (e.g., worldwide growth, marketing methods, industrial sector). To uncover survey data structures relevant to marketing strategies and foreign growth issues. ANOVA analysis Used to compare government influence across industries and firm sizes. SPSS software is used for statistical analysis, with a significance threshold of p < 0.05 for all tests.

 

Coded and analysed interview transcripts reveal foreign growth plans, government influence, and marketing practices. This approach categorises and quantifies important ideas and themes using open-ended survey answers and secondary data. Compare and contrast case results to detect trends and distinctive qualities.

RESULTS AND DISCUSSION

The descriptive statistics of our research sample outline the important features of the MNCs examined. Information is presented in tables and interpreted.

 

Table 1: Sample Composition by Industry Sector

Industry Sector

Number of Companies

Percentage

Technology

87

22.7%

Manufacturing

76

19.8%

Financial Services

62

16.1%

Consumer Goods

53

13.8%

Healthcare

41

10.7%

Energy

35

9.1%

Others

30

7.8%

Total

384

100%

 

The sample is representative of a wide variety of business sectors, with the most prominent ones being manufacturing (19.8%) and technology (22.7%). The generalizability of our results is improved as a result of this distribution, which makes it possible to conduct an exhaustive examination across a variety of industries.

 

Table 2: Company Size by Annual Revenue

Annual Revenue (USD)

Number of Companies

Percentage

< $1 billion

78

20.3%

$1-10 billion

147

38.3%

$10-50 billion

98

25.5%

> $50 billion

61

15.9%

Total

384

100%

 

Companies of varying sizes are included in the sample, with the majority (38.3%) falling within the revenue range of $1-10 billion. The distribution of these participants guarantees that our research will take into account the viewpoints of both major and medium-sized international organisations.

 

Table 3: International Presence

Number of Countries

Number of Companies

Percentage

2-5

62

16.1%

6-10

95

24.7%

11-20

127

33.1%

21+

100

26.1%

Total

384

100%

 

A significant amount of internationalisation may be inferred from the fact that the majority of the businesses in our sample (59.2%) are active in more than ten countries. With the help of this distribution, we are able to investigate the connection that exists between the degree of international growth and the capacity to reduce the impact of political interference.

 

Table 4: Perceived Level of Government Influence (Home Country)

Level of Influence

Number of Companies

Percentage

Very Low

28

7.3%

Low

72

18.8%

Moderate

156

40.6%

High

98

25.5%

Very High

30

7.8%

Total

384

100%

 

A sizeable proportion of the sample, which accounts for 33.3% of the total, believes that the amount of government influence in their native nations is either high or extremely high. This highlights the importance of our work in examining different measures that might be used to reduce the impact of such an effect.

 

The investigation of the impact of the government on multinational companies (MNCs), based on the survey data obtained from 384 individuals who participated in the study. A number of different facets of political influence and the effect that they have on corporate operations are the primary subject of this examination.

 

Table 5: Perceived Level of Government Influence (n=384)

Level of Influence

Percentage

Very High

28%

High

35%

Moderate

22%

Low

12%

Very Low

3%

 

The information shown in Table 5 reveals that a sizeable majority of respondents, exactly sixty-three percent, consider the impact of the government on their company operations to be either high or very high. The percentage of respondents who reported having low or extremely low levels of government influence was just 15%. This shows that the majority of multinational corporations in our sample are concerned about the possibility of government involvement.

 

Table 6: Areas of Government Influence (n=384)

Area of Influence

Mean Score (1-5)

Standard Deviation

Regulatory Compliance

4.2

0.8

Tax Policies

4.0

0.9

Market Access

3.8

1.1

Labor Laws

3.5

1.0

Environmental Regulations

3.3

1.2

 

From 1 (very low impact) to 5 (very high influence), Table 6 shows the average scores of several areas where the government is perceived. With a mean score of 4.2, regulatory compliance stands out as the domain where the government is most seen to have an impact, closely followed by tax policies with a mean score of 4.0. Although environmental restrictions are still important, respondents' experiences in this area are more diverse, as seen by the biggest standard deviation (1.2) and the lowest mean score (3.3).

 

Table 7: Correlation between Perceived Government Influence and Business Performance

Performance Indicator

Correlation Coefficient

p-value

Revenue Growth

-0.32

<0.001

Market Share

-0.28

<0.001

Profitability

-0.35

<0.001

Innovation Rate

-0.22

<0.01

 

Perceived government impact and other company success measures are correlated in Table 7. The results show that there is a negative and statistically significant link (p < 0.01) between the perceived influence of the government and inferior performance across all variables. Profitability has the most negative correlation (-0.35) and innovation rate has the least (but still significant) (-0.22).

 

According to these results, multinational corporations see government interference as a major issue impacting their operations, with tax laws and regulatory compliance ranking first on the list of concerns. Companies should think about strategic foreign growth as a way to lessen the

 

effect of government interference on their company results, as there are unfavourable connections with performance indicators. The results regarding the impact of government regulation on MNCs as a result of their export efforts. This study draws on survey responses from 384 MNCs operating in a wide range of sectors and geographies.

 

Table 8: Perceived Government Influence Before and After International Expansion

Level of Government

Influence

Before Expansion

(%)

After Expansion

(%)

Change

(%)

Very High

32.8

18.5

-14.3

High

41.7

33.6

-8.1

Moderate

19.5

28.9

+9.4

Low

5.2

14.8

+9.6

Very Low

0.8

4.2

+3.4

 

There is a noticeable change in the perceived influence of the government after foreign growth, as seen in Table 8. Multinational corporations had a 14.3% drop in the proportion reporting "Very High" government influence and an 8.1% drop in the proportion reporting "High" government influence. The "Moderate" (9.4%), "Low" (9.6%), and "Very Low" (3.4%) categories, on the other hand, saw rises. It seems that as businesses expand internationally, people tend to view the government as having less power.

 

Table 9: Impact of International Expansion on Specific Areas of Government Influence

Area of Government

Influence

Significant

Reduction (%)

Moderate

Reduction (%)

No Change

(%)

Slight

Increase (%)

Regulatory

Compliance

28.6

43.2

22.7

5.5

Tax Obligations

35.4

39.8

18.5

6.3

Market Access

Restrictions

41.7

37.5

15.6

5.2

Political Pressure

32.3

40.9

21.1

5.7

Local Content

Requirements

25.8

44.5

24.2

5.5

 

The biggest drop was in "Market Access Restrictions," at 41.7%, indicating that growth often allows businesses to get over restrictions imposed by home markets. The percentage of tax obligations also dropped significantly, with 35.4% reporting a drop; this could be because of tax optimisation options made accessible by global operations. There was a significant decline in both political pressure and regulatory compliance, suggesting that spreading out business activities across many jurisdictions may lessen reliance on the rules and policies of any one government. Since local content requirements vary by nation and could rise when a business expands into new markets, they exhibited the weakest decline. The expansion into markets with tougher restrictions or stronger government involvement might explain the tiny number of places (5.2% to 6.3%) that reported a little rise in government influence. In order to lessen the impact of governments throughout the world, multinational companies (MNCs) use a number of important marketing tactics, as seen in the survey results. Table 10 provides a summary of these tactics, and we'll go into more detail later.

 

Table 10: Marketing Strategies in International Markets

Strategy

Percentage of MNCs

Employing

Effectiveness Rating (1-

5)

Localization

78%

4.2

Digital Marketing

92%

4.5

Strategic Partnerships

65%

3.9

Corporate Social

Responsibility

71%

4.1

Diversification

59%

3.7

 

78% of surveyed MNCs localised their marketing mix to local tastes, preferences, and cultural norms. This method navigates local markets without relying on any government, scoring 4.2 out of 5. Digital marketing is the most popular approach, with 92% of MNCs using it. Digital channels may reach worldwide audiences without government supervision, according to their high efficacy rating (4.5). 65% of MNCs build strategic connections with local firms or influencers. Less prevalent than other techniques, its modest performance rating (3.9) shows its significance in creating local reputation and managing challenging market settings. Marketing strategies include CSR for 71% of MNCs. This technique seems to promote goodwill and counter unfavourable opinions of government language or policies, with an efficacy rating of 4.1. Diversification, the least used technique (59%), includes adding products or services to lessen market dependence. Its lower efficacy rating (3.7) implies that although it may mitigate risk, it may impact resource allocation and market emphasis.

 

Table 11: Correlation between Marketing Strategies and Perceived Reduction in Government Influence

Strategy

Correlation Coefficient

Localization

0.72

Digital Marketing

0.68

Strategic Partnerships

0.56

Corporate Social Responsibility

0.63

Diversification

0.41

 

The correlation study shows that all techniques lead to perceived government influence decrease, to varied degrees. Localization correlates best (0.72), implying that adjusting to local markets reduces government influence. Despite its popularity, digital marketing has a lower correlation (0.68). This suggests that although it's crucial for market penetration, it may not immediately reduce government control. CSR activities have a reasonably good connection (0.63), highlighting the necessity of positive community interactions to avoid government involvement. Strategic Partnerships help navigate local regulatory and commercial conditions with a modest connection (0.56). Diversification has the poorest correlation (0.41), demonstrating that although it may defend against political interference, its effect is less direct than other methods.

 

In foreign marketplaces, marketing techniques and political influence interact complexly. While all techniques reduce government influence, localization and digital marketing are especially beneficial (Ghauri, 2021). A multifaceted strategy seems to be the best way for MNCs to handle government influence in overseas markets. The study shows how smart international growth might mitigate government marketing impact (Mellahi, 2016). Our survey of 384 MNCs, based on power analysis with a 95% confidence level and 5% margin of error, shows a strong correlation between international expansion and reduced government influence on MNCs. Our results are indicative of worldwide MNCs due to this sample size (Samiee, 2019).

CONCLUSION

From a marketing standpoint, this research has looked at how deliberate international growth may help reduce the impact of government regulation. By branching out into other countries, a business may lessen its reliance on any one government and lessen the blow of unfavourable rules and regulations in any one market. To possibly counter restrictive measures in one nation with more favourable ones in another, corporations might use varied regulatory frameworks by diversifying across various markets. From a marketing perspective, expanding internationally allows firms to tailor their tactics to meet the needs of local markets. This allows them to possibly avoid areas where advertising, distribution, or product offers are restricted by government regulations. Maintaining marketing efficiency in the face of government interventions was shown to be positively correlated with the degree of international diversity, according to the research. Nevertheless, the sector of the economy and the precise character of government intervention determine the efficacy of global growth as a mitigation technique.

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