International Marketing in the Fast Changing World: Volume 26

Cover of International Marketing in the Fast Changing World
Subject:

Table of contents

(18 chapters)
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Purpose

To analyze the internationalization pattern of newly established firms in view of Johanson and Vahlne’s (1977, 2009) contributions.

Methodology/approach

We analyze all 2,390 Norwegian new ventures established in 2003 that export in the period 2003–2011.

Findings

We find three different groups of exporters in this cohort: the True Born Globals that start exporting the same year as they are established, and that export further away and to more countries than the other groups. We surmise that these firms fit the revised version of the Uppsala school of internationalization (Johanson & Vahlne, 2009) and are less hindered by “liability of outsidership.” The second group, Born Regionals, export already the second year after foundation, but to countries closer to Norway but to more than one country. Late-comers – starting three years after foundation or later – follow a more traditional path to international markets more in accordance with the original contribution by Johanson and Vahlne (1977).

Research limitations

Our analyses are based on secondary data provided by Statistics Norway. Whereas this gives us data on the total population, we lack information on more specific factors that may explain this pattern more precisely.

Originality/value

This is to our knowledge the first contribution that tests elements of the Uppsala school (pace of international expansion and psychic distance) in a country’s total population of newly founded firms.

Purpose

This paper deals with the international development of firms through the online sales channel. Despite the ever-growing importance of the issues involved in such internationalization strategies, they have received limited attention in the literature.

Methodology/approach

The paper presents an analysis of an expressly developed database of 20 multibrand luxury retailers in the online fashion market

Findings

The analysis highlights the international dimension of these players and sheds some light on internationalization through e-commerce of the luxury fashion retailers. In particular, the paper states that e-commerce may be related to different degrees of internationalization in multibrand luxury fashion retailers and that internationalization of multibrand luxury fashion retailers through e-commerce is unrelated to physical stores abroad.

Research limitations

Future research should be aimed at analyzing the characteristics of a greater number of actor, such as mono-brand luxury manufacturers, also comparing the fashion system with other sectors where the online channel exhibits a similar important trend.

Originality/value

The paper’s originality is related to a new phenomenon that has yet to receive appropriate consideration in the literature, the online international company growth with particular focus on the online channel as a new means to develop into foreign markets

Purpose

This paper studies the moderating effect of industry structure on strategy-performance relationships in international markets.

Methodology

We have carried out a survey among a sample of German, Norwegian and Singaporean small and medium sized firms, and test – using structural equation modelling (EQS) – four hypotheses founded in industrial organisation,

Findings

We find that industry structure indeed matters. The general picture is that cautious internationalisation strategies are more effective in fragmented industries than in concentrated industries. Also, with somewhat more nuance, global marketing strategies – such as standardisation and integration – seem by and large to be more effective in concentrated industries than in fragmented industries.

Limitations

The operationalisation of industry structure in an international context is challenging and we have deviated from the traditional Herfindahl–Hirschman Index. This may be a limitation but we also consider it a strength, given the weaknesses of this index in an international setting. The study is cross-sectional and should ideally follow each firm over time, again a challenging endeavour.

Originality

Despite a considerable amount of studies on strategy – performance relationships in international markets, there is no general agreement on the topic. We argue that a contingency approach needs to be taken, and that industry structure is one important factor not yet analysed.

Purpose

This paper deals with the international expansion of manufacturing small- and medium-sized enterprises (SMEs) through the opening of retail outlets in foreign countries. The paper develops and discusses five research questions.

Methodology/approach

The paper discusses emerging data from the analysis of a database set up in recent years. In particular, it deals with 1,419 retail operations regarding 246 Italian fashion brands in 77 foreign markets during the period from 2005 and 2010.

Findings

The paper points out that retail operations are largely used by Italian fashion SMEs to internationalize. This form of entry in foreign markets is used to develop in both mature and emerging markets and it seems related to the brand potential of Italian fashion SMEs abroad.

Research limitations

The paper is limited to the case of Italian fashion brands and to the period 2005–2010.

Originality/value

The paper considers an unexplored area of the internationalization theory of SMEs, that of the development abroad through retail store openings. The paper offers insights on the extent to what this strategy is used by Italian fashion brands.

Purpose

In this paper, we examine the elements of pricing approaches in export businesses and their performance in an international environment. The elements of pricing approaches consist of cost-based, competitor-based, and value-based decisions made by different levels of management. By providing an integrated, holistic view, we investigate how different types of export-pricing strategies influence export performance, and which elements strengthen or attenuate the outcomes of strategic actions.

Methodology/approach

Using data from a survey of 172 export managers, we test our hypotheses in a two-step approach. First, we use an unsupervised approach to group the export companies and to validate the cluster solution internally and externally. Second, we test our hypotheses regarding export performance.

Findings

The results show that the types of export-pricing strategies are unequally distributed, and the elements of the strategies have different complexities. Export performance varies significantly by type of pricing orientation used.

Purpose

The purpose of this study is to assess the effect of three key inter-firm orientations often regarded as central and challenging capabilities within the marketing literature namely (i) market orientation, (ii) entrepreneurial orientation and (iii) brand orientation and their effects on the business performance of a focal international SME.

Methodology/approach

The study is based upon a sample of 104 Swiss international firms and a questionnaire is used to capture their inter-firm marketing collaborations. Existing, well-established scales for market, brand, and entrepreneurial orientation were used and modified to capture the inter-firm dimension. The data was analysed using regression analysis.

Findings

Inter-firm market and entrepreneurial orientation have a significant positive influence of both market and financial performance. However, no significant impact was found for inter-firm brand orientation.

Originality/value

We show that collaboration within the marketing area is of critical importance for international SME in order to enhance their performance. Dealing with the increasing complexity and uncertainty in the global environment, we argue that international SMEs are especially dependent on improving their marketing collaborations in order to strengthen their competitive advantage. One main contribution is also to conceptualize and operationalize inter-firm marketing collaborations into a measurable empirical phenomenon, including scales that can also be used by other researchers in future studies.

Purpose

The relationship between internationalization efforts of businesses and resulting performance has long been debated in the international marketing literature. Specially, under the environmental uncertainty, perception and experience of managers are important for internationalization performance.

Methodology/approach

This study proposes an integrated research framework and mechanism between perceived international risk and international marketing performance, adopting international experience as moderator variable and entry mode as mediating variable. Survey was conducted on 1,612 managers of 420 Chinese international enterprises by email and received 463 valid questionnaires.

Findings

The results show that there is a significant negative relationship between perceived international risk and international performance. Direct influence and perceived international risk have an indirect influence on international performance through entry mode; the influence on the international performance from perceived international risk is moderated by international experience, the regression coefficient between perceived international risk and international performance is the quadratic function of international experience.

Originality/value

Different from previous literature, this study found the complex relationship between risk and performance.

Purpose

The objective is to determine if there are groups of subsidiaries that are different in regard to the implementation of strategies, structures, and processes and the transfer of marketing knowledge in emerging markets.

Methodology/approach

A survey with 101 largest foreign subsidiaries located in Brazil was conducted. The data collection process was conducted online and by telephone.

Findings

Three subsidiary groups based on the configuration of their international marketing activities were characterized: Cluster 1, called “Subsidiary with Knowledge Marketing Activities”; Cluster 2, called “Subsidiaries with Global Marketing Activities”; and Cluster 3, called “Subsidiaries with Local Marketing Activities.” Compared to the two other groups, Cluster 1 is the group with the minor number of companies, but it has a better strategic performance than other clusters.

Research limitations/implications

This study was developed in only one emerging country, Brazil, and with 101 subsidiaries from MNCs. This could be extended to other countries, such as China, Russia, India, and Turkey and with more subsidiaries. Related to the construct measurements, one limitation is the qualitative measure of performance.

Practical implications

Subsidiaries that work with global marketing should pool their efforts to create and transfer marketing knowledge to improve their performance. Subsidiaries with local marketing activities may even perform more satisfactorily in the short term, but they should concern to contribute to the overall competitive edge of the corporation.

Originality/value

The discussion about marketing in emerging markets and the way in which the transfer of marketing knowledge can be reflected in the performance.

Purpose

Owing to the inconclusive results of prior studies on the strategic change–firm performance relationship, this paper extends the marketing strategy literature by postulating an “inverted U-shaped” relationship and the moderating roles of “organizational learning” (OGL) and “strategic flexibility” (STF).

Methodology/approach

A self-administered survey was employed to collect data from different strategic business units of 550 firms operating in Thailand. The data collection yielded a response rate of 17.27%. Confirmatory factor analysis was used to validate the scales, and path analysis was employed to test the hypotheses in this study.

Findings

Although no significant curvilinear relationship was found, the directions of the path coefficients are consistent with the hypothesis. Both OGL and STF serve as significant moderators in the marketing strategic change (MSC)–business performance relationships. While STF strengthens the relationship, the generative OGL tends to weaken it.

Practical implications

Managers need to understand the type of learning that fits different types of strategic changes in order to enhance business performance. Generative OGL may seem harmful for changes that are less proactive. Furthermore, firms should incorporate flexibility in managing political, economic, and financial risks in their strategies by emphasizing investments and cost sharing, flexible human capital allocation, and spontaneous and impromptu actions.

Originality/value

This study extends international marketing strategy literature by empirically testing the hypotheses in an emerging Asian economy. The research proposes a nonlinear relationship between MSC and business performance as well as introduces the moderating roles of OGL and STF.

Purpose

This study investigates how direct cultural interaction between a supplier country’s personnel and host country purchasing decision makers (HCNs) occurring during the exporting of professional, high-contact services can help shape the latter’s perception of the image of the supplier country and their willingness to buy its services or products. The article develops a theoretical framework that identifies those key drivers and their relationship.

Methodology/approach

This is a conceptual paper based on a comprehensive review of the literature complemented by a pilot study with offshore executive MBA programs.

Findings

A conceptual model is developed with a series of testable propositions.

Practical implications

The framework should help companies and organizations involved in the exporting of such services devise programs to bolster the image of their country as a provider of these and other services and products.

Social implications

Trade in services is becoming a lifeline for many developed countries that have seen their manufacturing industries relocate to low labor-cost countries. Thus, it is imperative for these countries to bolster their COO to gain competitive advantage. Developing countries can also use such a framework as a means of improving the overall image of their own country and its products.

Originality/value

This research complements those rare studies done on the acculturation of HCNs by examining, for the first time, this process in the context of the exporting of professional services and on how it can lead to changes in the perception of the HCNs vis-à-vis the image of the supplier country.

Purpose

There is a rising number of Asian brands expanding to Western nations. However, one of the biggest challenges is their reputation of inferior quality. The objectives of this research are to examine the U.S. consumers’ quality perception of Asian brands and what steps can be taken to improve their perceived quality to ultimately influence patronage intentions. This study also considers how age influences U.S. consumers’ perceived quality and patronage intentions.

Methodology/approach

An online experiment using 328 U.S. female subjects was conducted to examine how quality cues (brand origin and product design) influence their perceived quality of Asian brands. The study also examines how age (due to different levels of exposure of Asian brands) moderates the relationship between product cues and perceived quality.

Findings

The findings showed that there was a difference between the younger (Generation X and Y) and older (Baby boomers and Swing) group’s perceived quality of these Asian brand origins, namely Japan and China. Product design had an impact on perceived quality, but age was not a moderating factor.

Implications

Chinese and Japanese brands can use these differences in perception of brand origins to market accordingly. Product design cues can also be used effectively to both age groups by Asian brands to improve the perceived quality of U.S. consumers.

Originality/value

This research provides novel insight on U.S. consumers’ perceived quality and patronage intentions from different Asian brand cues. The study also contributes to the body of literature on how the relationship between specific Asian brand cues and perceived quality may differ as a function of age.

Purpose

The purpose of this paper is to shed light on the interplay between selected consumer behavior constructs and their individual and joint influences on purchase intentions of global, local, and hybrid brands. This is a topic that is becoming increasingly important as the world moves toward global economic interdependence and increasingly more firms expand abroad.

Methodology/findings

As the paper is in its conceptual/modeling phase, its research design is not yet complete, nor does it offer any findings. Resting our work on attitude and identity theories, we derive hypotheses about the potential influence of consumer behavior constructs, that is, the levels of the consumer’s global consumption orientation, globalization attitude, consumer ethnocentrism, and consumer cosmopolitanism on global brand attitude and its influence on willingness to purchase global versus nonglobal brands. We also derive hypotheses about influences that might moderate this relationship; specifically the consumer’s affinity with the home country of the particular brand, and the perceived value embedded in the brand.

Research/practical/social implications

Our work will contribute to the expanding literature on global consumer culture and consumption patterns and will thus provide valuable insights for international marketing managers and for social policy.

Originality/value

Our work will examine the joint influences of several consumer behavior constructs on brand purchase behavior, in addition to the independent influences of these constructs. It will also explore the possible mediating influence of global brand attitude on purchase intentions and moderating effects, if any, of perceived value and consumer affinity on consumers’ choices of global over local and hybrid brands.

Cover of International Marketing in the Fast Changing World
DOI
10.1108/S1474-7979201526
Publication date
2015-10-24
Book series
Advances in International Marketing
Editors
Series copyright holder
Emerald Publishing Limited
ISBN
978-1-78560-233-7
eISBN
978-1-78560-232-0
Book series ISSN
1474-7979