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Article
Publication date: 10 January 2020

Tore Mysen and Bård Tronvoll

This paper aims to examine the extent to which exporter difficulties in evaluating foreign sales agent performance affect export performance, either directly or as mediated by…

Abstract

Purpose

This paper aims to examine the extent to which exporter difficulties in evaluating foreign sales agent performance affect export performance, either directly or as mediated by opportunism.

Design/methodology/approach

In developing the hypotheses, the study integrates transaction cost theory and principal-agent theory. The proposed relationships between the constructs (performance ambiguity, opportunism, and export performance) are examined for a multi-industry sample of Norwegian exporters in their dealings with foreign sales agents. A survey of 410 qualified key informants yielded 101 usable questionnaires – a response rate of 24.6%. Structural equation modeling is used for data analysis and hypothesis testing.

Findings

The analysis finds support for the hypothesis that sales agent performance ambiguity relates negatively to export performance. While performance ambiguity is positively related to sales agent opportunistic behavior, opportunism does not significantly influence export performance. It seems that the adaptation costs created by the evaluation problem are of greater importance in reducing export performance than the costs created by opportunistic behavior.

Research limitations/implications

In focusing on the core dimensions of sales agent performance in foreign markets, other factors influencing export performance are not included. The fact that small Norwegian firms dominate the sample, further limits application and generalization of the findings. Hence, results should be interpreted with caution and the study considered as investigative. Nevertheless, the results indicate to export managers and theory potentially deteriorating dimensions in the relationship between exporter and foreign independent sales agent.

Originality/value

To the best of the authors’ knowledge, this study is the first to examine how performance ambiguity and opportunistic behavior among foreign sales agents affect export performance. By concentrating on basic deteriorating dimensions, the study adds to the few that focus on inhibiting drivers of exporter – foreign–sales–agent relationships.

Details

European Business Review, vol. 32 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 4 December 2017

Se-Hwa Ahn

The purpose of this paper is to examine the effects of small and medium-sized enterprises’ (SMEs) foreign agent operations on their international performance. This study thus…

Abstract

Purpose

The purpose of this paper is to examine the effects of small and medium-sized enterprises’ (SMEs) foreign agent operations on their international performance. This study thus investigates a mechanism in which market information obtained through agents is interpreted, transformed and applied for decision making and presents outcomes. In particular, the study focuses on the mediating role of adaptive capability on the relationship between market information management and export performance.

Design/methodology/approach

Drawing upon the theories of knowledge-based view and contingency paradigm, a research model is developed for linking the key constructs of foreign agent operations, information management, adaptive capability and performance. Structural equation modeling is applied for testing the model using data collected from a sample of 152 Korean SME exporters.

Findings

The results indicate that a firm’s operation quality of foreign agents strongly affects the quality of market information management which consequently impacts export performance. In the relationship between market information management and export performance, in particular, adaptive capability is found to play a mediating role. This implies that export performance is, for the most part, achieved by the mediation of adaptive capability, although market information leads directly to export performance to some degree. The results also confirm the existence of reciprocal causation between a firm’s export performance and foreign agent operations. The finding suggests that the outcome of SME export performance continues to provide feedback to its operations of foreign agents and consistently influence each other.

Originality/value

This study makes an important contribution to the body of export literature by identifying the mediating effects of adaptive capability on the relationship between market information management and export performance. In addition, the results create a recursive model for SME export performance by verifying the reciprocal relationship between export performance and operating with agents. This study thus helps extend understanding of international operations through foreign agents in the SME context.

Details

Journal of Korea Trade, vol. 21 no. 4
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 19 September 2016

Lancy Mac and Felicitas Evangelista

This study aims to gauge the interactive effect of export intensity and diversity on export performance among exporters in an emerging economy and explore the moderating effect of…

Abstract

Purpose

This study aims to gauge the interactive effect of export intensity and diversity on export performance among exporters in an emerging economy and explore the moderating effect of export intermediaries on the internationalization–export performance relationship.

Design/methodology/approach

A survey was undertaken among a convenience sample of small and medium exporters located in Guangdong and Fujian Provinces in South China.

Findings

The results show that intensity and diversity interact negatively with export performance, whereas the use of export agents registered a positive effect. Exporters pursuing a strategy of high export intensity will achieve better performance provided that these exports are concentrated in a few countries. Using export agents can help in enhancing the intensity–performance relationship but not that for diversity–performance.

Practical implications

Chinese exporters are advised not to blindly pursue international expansion without regard to their own resources and capabilities. They should try to strike a balance between intensity and diversity and employ external agents when needed.

Originality/value

This research seeks to address the void in the literature on how export intensity and diversity should be balanced to create a positive effect on the performance of exporting ventures in an emerging economy, which is under-addressed in the literature. It is also found that employment of export intermediaries is not always good for export performance.

Details

Multinational Business Review, vol. 24 no. 3
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 1 February 1983

Peter G.P. Walters

This article discusses the role of information in the export development process and identifies some recent findings regarding the utilisation of export information sources…

Abstract

This article discusses the role of information in the export development process and identifies some recent findings regarding the utilisation of export information sources. Propositions regarding patterns of information acquisition and the perceived utility of the input are then examined using data from a sample of forest products exporters.

Details

International Marketing Review, vol. 1 no. 2
Type: Research Article
ISSN: 0265-1335

Article
Publication date: 1 February 1968

Malcolm Forbes

Argues that the best way of maximizing sales is not by employing commission agents as is traditionally the case. Presents the disadvantages of such a system which are centred on…

Abstract

Argues that the best way of maximizing sales is not by employing commission agents as is traditionally the case. Presents the disadvantages of such a system which are centred on the nature of the agent/principal relationship which can produce conflicting aims. Concludes that the use of a sales promoter might be a better alternative.

Details

European Journal of Marketing, vol. 2 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 February 1983

Michael R. Czinkota and Michael L. Ursic

This article reports the findings of a survey of export attitudes and behavior of small‐ and medium‐sized U.S. manufacturing firms. Companies are differentiated according to their…

Abstract

This article reports the findings of a survey of export attitudes and behavior of small‐ and medium‐sized U.S. manufacturing firms. Companies are differentiated according to their growth expectations and the behaviors of firms that have export growth expectations are compared to the behavior of firms that do not anticipate export growth. The authors suggest that the export growth expectations of a firm shape its behavior in terms of contact activities and its perceptions of export problems. Recommendations are made regarding the use and helpfulness of outside information sources.

Details

International Marketing Review, vol. 1 no. 2
Type: Research Article
ISSN: 0265-1335

Article
Publication date: 1 March 1981

Graham I. Jackson

Looks at the experiences and viewpoints of retail buyers, importers and agents in the UK market buying from Israel. Examines the success or failure of Israeli consumer goods…

Abstract

Looks at the experiences and viewpoints of retail buyers, importers and agents in the UK market buying from Israel. Examines the success or failure of Israeli consumer goods companies exporting to the UK. Reveals that market entry and market penetration are two distinct stages, and that success or failure can be attributed to the exporters” attitude to business rather than product attributes or other marketing mix variables.

Details

European Journal of Marketing, vol. 15 no. 3
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 January 1969

C.R. Russell

Maintains that the course of academic thought has been diverted from anatomical thinking, a penchant of looking at an operation in terms of the parts, to wholeness thinking, an…

Abstract

Maintains that the course of academic thought has been diverted from anatomical thinking, a penchant of looking at an operation in terms of the parts, to wholeness thinking, an overview emphasising an identity separate from and greater than its parts. Describes novel methods of finding new agents, together with details of a formal type of arrangement designed to provide effective and lasting co‐operation between the home company and its representatives abroad. States that a systems perspective might well be the most prudent method of rationalising the vast amounts of data on consumer behaviour that has been created by behavioural scientists. Concludes that harmony of interest between principals and agents is a vital key to success initiating and expanding overseas markets.

Details

European Journal of Marketing, vol. 3 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 April 1984

Nicholas C. Williamson and Daniel C. Bello

The instability of the relationships which Export Management Companies have with their Manufacturer‐Suppliers is, perhaps, the most pressing problem which the EMCs have in their…

Abstract

The instability of the relationships which Export Management Companies have with their Manufacturer‐Suppliers is, perhaps, the most pressing problem which the EMCs have in their long‐term development as viable export marketing channel entities. Three different variables were empirically tested as possibly affecting the stability of EMC/M‐S relationships: (1) the “operating arrangement” which the EMC has with the M‐S; (2) whether or not the EMC “takes title” to products which it markets abroad; and (3) the size of a given M‐S's export sales generated by the EMC. All three variables were shown to affect the stability of the EMC/M‐S dyadic relationship.

Details

International Marketing Review, vol. 1 no. 4
Type: Research Article
ISSN: 0265-1335

Article
Publication date: 1 January 1971

M.T. Cunningham and R.I. Spiegel

Examines the export activities of a sample of companies which have won the Queen's Award to Industry for export achievement. Looks at those criteria employed in order to achieve…

Abstract

Examines the export activities of a sample of companies which have won the Queen's Award to Industry for export achievement. Looks at those criteria employed in order to achieve export success. States that not all of the companies practised all of the criteria, with the majority using only two. Concludes that the historical background and tradition of an organization, together with the attitudes of its senior management, are the most significant factors in determining the level of its success.

Details

European Journal of Marketing, vol. 5 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

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