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Adaptation of foreign market strategy and its performance outcomes have been among the key research topics in international business and international marketing. The present chapter provides new evidence on the contingent nature of the adaptation-performance relationship. Drawing from the institution-based view, we argue that adaptation increases legitimacy in the foreign market, hence improving foreign market performance. This relationship can be expected to gain importance for higher levels of institutional distance. Conversely, we expect that a successful development of foreign market relationships can be an alternative way of gaining legitimacy. These statements are supported with quantitative data from 284 firms and qualitative evidence from 8 firms.

Research within the inter-organizational field has until recently focused on the formation and maintenance of business relationships, while less research has been directed toward the study of relationship ending. Lately, however, research on dissolution and related constructs, such as exit intention and switching has emerged (Halinen, Havila, & Tähtinen, 1999a; Prim-Allaz, 2000; Tähtinen & Havila, 2004; Vaaland, Haugland, & Purchase, 2004). Some literature focuses on the reasons and antecedents to relationship dissolution (Ping, 1999; Haugland, 1999; Wathne, Biong, & Heide, 2000), while other research investigates the process and consequences of relationship dissolution (Grønhaug, Henjesand, & Koveland, 1999; Giller & Matear, 2001; Alajoutsijärvi, Möller, & Tähtinen, 2000). Yet, few studies have investigated relationship dissolution in cross -national dyads. Specifically, the current research examines how supplier reps’ cultural knowledge, cultural adaptation and communication affect buyer tolerance of conflict in cross-national business relationships. The construct tolerance of conflict refers to the intention to discontinue the business relationship with the current partner given conflict situations. This construct is therefore conceptually close to exit intention; a construct frequently used in relationship dissolution studies (e.g. Ping, 1993,1995; Halinen & Tähtinen, 1999b).

We use collective learning theory to explain social movement strategic outcomes. Three movement strategies are conceptualized: insider, outsider, and generalist strategies. Generalist strategies are a combination of insider and outsider tactics. Movements learn in three main ways: retention of existing knowledge, adaptation based on past experiences, and via diffusion processes. Utilizing available data about the use of insider and outsider tactics in the state-level fight for woman suffrage, we find that state suffrage movements learned through retention of previously used strategies, adaptation in the face of major defeat, and through the diffusion of outsider tactics. Social movements exhibit structural inertia. Movement activists stick to what they know, unless they face a major defeat. Movement strategies are more complex and more flexible than suggested by the current focus in the social movement literature, suggesting the need to rethink the insider–outsider dichotomy.

Despite the theoretical assumption that balancing exploration and exploitation is important for long-term performance and survival, previous studies have provided few insights into these relationships because they have focused mainly on the short-term financial performance of organizations. In addition, balancing exploration and exploitation is a critical challenge for small- and medium-sized enterprises (SMEs) that lack the resources, capabilities, and experience necessary to achieving ambidexterity. In this regards, this study empirically explores the relationship between the exploration–exploitation balance and SMEs’ longevity in order to address two important questions from the ambidexterity perspective: (1) How does the balance between exploration and exploitation influence organizational survival? (2) How is the appropriate balance between exploration and exploitation influenced by an organization’s internal and external contexts?

An analysis of 1981–2012 data from the Korean SMEs in IT industry reveals an inverted U-shaped curvilinear relationship between the extent of exploratory innovation and organizational longevity, providing support for the ambidexterity perspective. We further examine the moderating effects of financial slack and environmental dynamism on the relationship between exploratory innovation and organizational longevity. The results indicate that financial slack moderated the exploration–longevity relationship and call for a contingency approach for a better understanding of performance implications of the exploration–exploitation balance.

Affect control theory describes a process in which individuals work to maintain existing situated identities. In this paper, we extend affect control theory to explain selective identity preferences in occupational settings. We argue that individuals form preferences about potential future identities with an eye to maintaining consistency between their potential experiences and their existing biographical identities. In particular, we suggest that occupational identity preferences reflect work-specific biographical identities called worker identities. We then predict that individuals who are seeking alternative or additional occupational identities will prefer those that evoke sentiments that are similar to those evoked by their worker identities. We find that current worker sentiments predict reports of desired and undesired future occupational identities, to include generalized military identities, to a remarkable degree. We discuss the implications for research on occupational mobility, work, and life course, as well as for existing identity theories.

Research related to firm export performance dates back to the early 1960s, ever since many studies have been conducted with mixed results. The three main goals of the present study were to analyze (1) the impact of the selected firm, management, and the export strategy-related variables on the export performance; (2) the possible variation in the results depending on the measure of export performance; and (3) the similarities and differences in the results depending on the type of SME – traditional exporters vs. born international companies. Based on a literature review, 14 hypotheses were developed to be tested. Consequently, the empirical part of the study is based on a survey conducted among Finnish SMEs in early 2002. The export performance was analyzed using six different types of performance measures. None of the 14 hypotheses were fully supported by all employed measures of performance. However, the export performance was positively impacted by firm size, product/service quality, international orientation, and market diversification along five measures. Additionally, the study indicated some similarities, but also some differences depending on the measure of export performance, type of the exporting SME, and the operationalizations used for the born international companies. Based on the results, management implications and proposals for future research are presented.

This paper studies organizational change following a shift in an industry environment, in the context of how a focused factory adapts to a change in its manufacturing objectives. We use the organizational nature of production operations to suggest that the effectiveness of adaptation will depend on how well the manufacturing requirements of the new objectives match manufacturing capabilities at the production line level. We test our hypotheses using primary data from the Hartselle, Alabama compressor manufacturing focused factory of the Copeland Corporation. The results suggest that factors that influence adaptability derive from individual and organizational competence, and that the direction and extent of their influence depends on the systemic nature of the operational activity concerned. The results highlight roles of carefully designed complexity in operations and of process-oriented decision making on the shop floor in successful adaptation. This work contributes to our understanding of how business organizations overcome constraints to change.

This study examines the influence of marketing strategies on export ventures undertaken by micro and small enterprises (MSEs) established in emerging countries and in Brazil specifically. We aim to determine whether a direct relationship exists between marketing strategies and internationalization performance results and to evaluate the influence of entrepreneurial marketing (EM) on export marketing strategy (EMS) and performance. A conceptual model based on the work of Cavusgil and Zou (1994) is developed and used to analyze MSE characteristics (firm and products), EMS, EM, and export marketing performance. An empirical survey was conducted on 173 Brazilian MSEs across various sectors, and data analysis was performed using structural equation modeling. The results highlight the importance of marketing activities in shaping MSE export performance, mainly by adapting prices to targeted markets, thereby improving product competitiveness. The study also emphasizes the importance of company international competence (expertise) and EM as influencers of export performance. The study contributes to the field through its application of the EM construct, by adapting the conceptual MSE model and by filling empirical gaps knowledge. The results will guide MSE management strategies that will be critical to the Brazilian economy and to other emerging countries.

While it is widely recognized that firms in an era of technological ferment exist under conditions of significant uncertainty and ambiguity, little is known about the exact processes through which firms explore their ideas and resolve uncertainty. Arguing that our understanding of the era of ferment is much less developed than other aspects of the technology life cycle, we examine the micro-dynamics of technology-based entrepreneurial firms during this period. We focus on the role of purposeful experimentation as a key form of learning for start-ups firms in the era of ferment. Our approach contrasts with the prevailing view in the literature in which the era of ferment is characterized by extensive experimentation across firms, with each firm representing a single data point in an industry-level experiment. It also extends the learning literature by focusing on start-ups and taking the perspective that learning can encompass purposeful experimentation as well as local search and chaotic adaptation in the era of ferment. Building on the literature on experimental design, we propose a definition and taxonomy of purposeful experimentation. The taxonomy defines the experimental landscape as having three domains – technological, product and business model; and two dimensions – degree of simultaneity and degree of parameter manipulation. We examine this framework using data from a technology-based start-up and find evidence for purposeful experimentation as a key element of the firm’s learning strategy. We also highlight the organizational constraints and challenges that are associated with experimentation. Our findings emphasize the importance of entrepreneurial action, choice and internal experimentation processes.