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Book part
Publication date: 24 October 2015

Hui Xu, Harry A. Taute, Paul Dishman and Jing Guo

The relationship between internationalization efforts of businesses and resulting performance has long been debated in the international marketing literature. Specially, under the…

Abstract

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.

Details

International Marketing in the Fast Changing World
Type: Book
ISBN: 978-1-78560-233-7

Keywords

Book part
Publication date: 24 August 2011

Breda Kenny and John Fahy

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network…

Abstract

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

Details

Interfirm Networks: Theory, Strategy, and Behavior
Type: Book
ISBN: 978-1-78052-024-7

Keywords

Article
Publication date: 27 September 2023

Mariola Ciszewska-Mlinarič, Dariusz Siemieniako and Piotr Wójcik

This paper contributes to studies on the relationship between dynamic capabilities (DCs) and performance by showing how domain-specific DCs – international dynamic marketing

Abstract

Purpose

This paper contributes to studies on the relationship between dynamic capabilities (DCs) and performance by showing how domain-specific DCs – international dynamic marketing capabilities (IDMCs) – affect the international performance of exporting firms in the context of extreme environmental dynamism – during the COVID-19 pandemic.

Design/methodology/approach

The authors focus on a sample of 277 exporting manufacturers from the post-transition economy of Poland. The authors use hierarchical multiple regression analysis to test this study's hypotheses.

Findings

This study's findings show that deployment of IDMCs by export manufacturers in the context of environmental jolts contributes to better performance, and this relationship is mediated by adaptation to foreign markets and product development capability. Additionally, this study's results reveal that the significant and positive indirect effect of IDMCs on international performance (through mediators) is, however, weakened under conditions of extreme environmental dynamism.

Research limitations/implications

The limitations pertain to the cross-sectional nature of this study and the research sample, characterised by the dominance of export manufacturers of final products, the dominance of manufacturers operating in the business-to-business sector, or in the business-to-business and business-to-customer sectors simultaneously.

Practical implications

The study provides suggestions to managers on how to build resilience in international markets during turbulent times. These activities involve investments in IDMCs that support activities centred around product development and adaptation to foreign markets.

Originality/value

The novel construct of IDMCs is introduced and operationalized. The study empirically tests the direct and indirect relationship between IDMCs and performance contingent upon extreme environmental dynamism. The results demonstrate the boundary conditions for the effectiveness of these domain-specific DCs in such a research setting.

Details

International Marketing Review, vol. 41 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 22 December 2022

Sheshadri Chatterjee, Ranjan Chaudhuri and Demetris Vrontis

This study examines the marketing performance of firms from an international dynamic marketing capability perspective. It also investigates the moderating role of marketing

Abstract

Purpose

This study examines the marketing performance of firms from an international dynamic marketing capability perspective. It also investigates the moderating role of marketing leadership teams to improve organizations' international marketing performance.

Design/methodology/approach

The authors used dynamic capability view and other related literature to develop a theoretical model, which was validated with the structural equation modelling technique, considering a sample of 455 respondents from Indian firms. The authors also used the multigroup analysis method to examine the moderating impacts of a firm's marketing leadership team on their international marketing performance.

Findings

There is a positive relationship between a firm's dynamic ability factors and its international dynamic-marketing capabilities. The study also finds that a firm's marketing leadership team has a significant positive moderating impact on improving its international marketing performance.

Research limitations/implications

The unique theory-based model clearly explains how a firm's dynamic abilities impact international dynamic marketing capability, which then impacts its international marketing performance. This model can help practitioners, researchers and academicians to understand the significance of a firm's international dynamic capability on international marketing performance. The study also helps firms to understand the moderating influence of marketing leadership teams to improve international marketing performance.

Originality/value

This study adds value to the body of literature on international dynamic marketing, international marketing performance and international marketing knowledge management, on which, until now, few other studies have focused. Thus, this research is unique. The proposed model of international dynamic marketing is also unique with high explanative power.

Open Access
Article
Publication date: 7 March 2023

Hammad Bin Azam Hashmi, Ward Ooms, Cosmina L. Voinea and Marjolein C.J. Caniëls

This paper aims to elucidate the relationship between entrepreneurial orientation, reverse innovation and international performance of emerging economy multinational enterprises…

1286

Abstract

Purpose

This paper aims to elucidate the relationship between entrepreneurial orientation, reverse innovation and international performance of emerging economy multinational enterprises (EMNEs).

Design/methodology/approach

The authors analyze archival data of Chinese limited companies between 2010 and 2016, including 11,230 firm-year observations about 1708 firms. In order to test the study’s mediation hypotheses, the authors apply an ordinary least square (OLS) regression.

Findings

The authors find evidence that the entrepreneurial orientation of EMNEs has a positive effect on reverse innovations. Furthermore, the authors find positive effects of reverse innovation on the international performance of EMNEs. This pattern of results suggests that the relationship between entrepreneurial orientation and international performance is partially mediated by reverse innovation.

Practical implications

The study’s findings help managers in EMNEs to promote reverse innovation by building and using their entrepreneurial orientation. It also helps them to set out and gauge the chances of success of their internationalization strategies. The findings also hold relevance for firms in developed economies as well, as they may understand which emerging economy competitors stand to threaten their positions.

Originality/value

The strategic role of reverse innovations – i.e. clean slate, super value and technologically advanced products originating from emerging markets – has generated considerable research attention. It is clear that reverse innovations impact the international performance of EMNEs. Yet how entrepreneurial orientation influences international performance is still underexplored. Thus, the current study clarifies the mechanism by examining and testing the mediating role of reverse innovation among the entrepreneurial orientation–international performance link.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 3 January 2023

Nadia Zahoor and Yong Kyu Lew

This study investigates to what extent strategic flexibility of international strategic alliances (ISAs) affects export performance of emerging market small and medium-sized…

3704

Abstract

Purpose

This study investigates to what extent strategic flexibility of international strategic alliances (ISAs) affects export performance of emerging market small and medium-sized enterprises (ESMEs) via international marketing capability in crises. It also examines whether these ESMEs’ adoption of digital technology strengthens the impact of strategic flexibility of ISAs on international marketing capability.

Design/methodology/approach

Based on the international alliance and dynamic capability perspectives on strategic flexibility, the authors develop a conceptual model and empirically examine the mediation and moderation effects between strategic flexibility of ISAs, international marketing capability, export performance and adoption of digital technology. The authors collected survey data from 129 ESMEs located in Pakistan between May 2021 and August 2021 and tested the conceptual model with hierarchical-moderated regression analysis.

Findings

The findings suggest that strategic flexibility of ISAs positively impacts on export performance of ESMEs in crises. Moreover, the authors found that international marketing significantly mediates the relationship between strategic flexibility of ISAs and export performance of ESMEs. Also, the adoption of digital technologies significantly moderates the relationship between strategic flexibility of ISAs positively and international marketing capability.

Originality/value

The authors take strategic flexibility of ISAs in the context of the emerging market and how ESMEs enhance export performance in a time of crisis, which extends the prior ESMEs’ international marketing strategy and crisis management literature. In particular, the authors show that strategic flexibility of ISAs is a vital dynamic capability to enhance export performance of ESMEs via international marketing capability and adoption of digital technologies.

Article
Publication date: 1 February 1993

S. Ade Olusoga

Investigates the influence of market concentration, marketdiversification and internationalization strategies on the performanceof multinational enterprises (MNEs). Using a sample…

1601

Abstract

Investigates the influence of market concentration, market diversification and internationalization strategies on the performance of multinational enterprises (MNEs). Using a sample of 450 large, medium and small MNEs, and three alternative definitions of market concentration and market diversification, results indicate that market diversification strategy produces better performance results for MNEs than market concentration strategy. In addition, MNEs using market concentration‐low internationalization strategy performed better than those using market concentration‐high internationalization strategy, and MNEs using market diversification‐low internationalization strategy performed better than those using market diversification‐high internationalization strategy. Discusses implications of the study′s findings for improved MNE performance.

Details

International Marketing Review, vol. 10 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Open Access
Article
Publication date: 14 October 2021

Anisur R. Faroque, Olli Kuivalainen, Jashim Uddin Ahmed, Mahabubur Rahman, Hiran Roy, M. Yunus Ali and Md Imtiaz Mostafiz

Although both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has…

2790

Abstract

Purpose

Although both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has received little attention. This study examines the role of international EO in deriving performance benefits from governmental and nongovernmental export assistance.

Design/methodology/approach

In this longitudinal study, two surveys were administered at two different times: In 2011, 705 Bangladeshi apparel exporters were surveyed, and in 2019, a subsequent survey of 198 firms in multiple industries was conducted. The aim of the surveys was to assess the relationships between governmental and nongovernmental assistance, EO and export performance.

Findings

The results of the first survey show that, while nongovernmental assistance influences performance directly and via EO, governmental assistance has only direct effects. Furthermore, the negative influence of government assistance on EO reduces the total effects and renders them nonsignificant. The results of the second survey demonstrate that government EPPs have both direct and indirect positive and significant effects on market performance, indicating a partial mediation, whereas quasi-governmental assistance has positive and significant direct effects as well as negative but nonsignificant indirect effects. Nongovernmental EPPs have both direct and indirect significant effects on international performance, indicating a partial mediation.

Research limitations/implications

The study has important implications for researchers studying export assistance and its impact on firm performance. Instead of adopting a parochial view of government assistance, this study categorizes such assistance into three types – government, quasi-government and nongovernment. Furthermore, this study bridges the export assistance and international entrepreneurship literature by including EO.

Practical implications

Entrepreneurs must emphasize the use of government assistance in order to enhance export performance. However, to promote both entrepreneurship and performance, they must emphasize nongovernment assistance. Exporters should also capitalize on the assistance extended by various quasi-governmental agencies to bolster export performance.

Originality/value

Given the performance advantage of export assistance, this study highlights the contribution of the private sector in promoting export entrepreneurship while shedding light on the pernicious role of (quasi-)governmental assistance in export entrepreneurship.

Details

International Marketing Review, vol. 38 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 18 August 2020

Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh

The international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a…

Abstract

Purpose

The international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a pivotal strategy to achieve success. Drawing on the entrepreneurship literature and opportunity perspective, this study aims to investigate the role of international entrepreneurial capability in enhancing the international opportunity recognition (IOR) process and the performance of export manufacturing firms.

Design/methodology/approach

Structural equation modelling has been used to test the hypothesised relationship on 388 export manufacturing entrepreneurial firms operating in the apparel industry of Bangladesh.

Findings

The results signify that three international entrepreneurial capabilities, namely, international networking, learning and marketing capability, positively enhance the IOR process of export manufacturing firms. The IOR process positively mediates the relationships between these international entrepreneurial capabilities and firm performance.

Originality/value

Merely having the international entrepreneurial capability is not sufficient to escalate the firm performance. It must be amplified by various strategic actions such as the IOR process. Entrepreneurs need to capitalise on the international entrepreneurial capability to leverage the IOR process and generate non-financial performance success. Entrepreneurial firms that focus more on stimulating non-financial performance can secure better financial performance.

Article
Publication date: 9 July 2021

Henry F.L. Chung and Mia Hsiao-Wen Ho

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This…

1597

Abstract

Purpose

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature.

Design/methodology/approach

This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach.

Findings

Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected.

Research limitations/implications

This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties).

Practical implications

While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation.

Originality/value

This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

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