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Article

Giacomo Laffranchini, John S. Hadjimarcou, Si Hyun Kim and Mike Braun

The purpose of this paper is to explore the internationalization process of small and medium family-owned businesses (FOBs). The authors strive to explain the extent to…

Abstract

Purpose

The purpose of this paper is to explore the internationalization process of small and medium family-owned businesses (FOBs). The authors strive to explain the extent to which family business CEOs identify a signal in either the domestic or international environment for internationalization as a viable business opportunity.

Design/methodology/approach

The authors rely on signal detection theory to develop a conceptual model that explains the cognitive process inducing the CEO-founder of an FOB to discover and exploit an opportunity in the international market.

Findings

The conceptual model proposes that constraints in a family-firm’s domestic market, as well as opportunities in the foreign market act, as signal strength. However, family business CEO-founders’ centrality and inward orientation might lead them to ignore a signal by generating noise and reducing the motivation to collect further information concerning the trustworthiness of the signal.

Research limitations/implications

The model is conceptual; future research should strive for a potential way to operationalize the cognitive process described herein. In addition, the theoretical argument has been developed in the context of family firms wherein the founder plays a pivotal role. Future research may extend the theoretical arguments to those family firms that are at an advanced stage of development.

Originality/value

The study reconciles conflicting findings concerning the internationalization of FOBs. In doing so, the authors employ an interdisciplinary approach and develop a conceptual model that sheds additional light on the cognitive processes underlying internationalization decisions among founder-centered family firms.

Details

Journal of Family Business Management, vol. 6 no. 3
Type: Research Article
ISSN: 2043-6238

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Article

John Hadjimarcou, Jessica Herrera and Dalila Salazar

Previous research on the internationalization of retailing typically focused on retail companies crossing borders to enter other countries. Yet, a large number of people…

Abstract

Purpose

Previous research on the internationalization of retailing typically focused on retail companies crossing borders to enter other countries. Yet, a large number of people cross country borders to outshop in neighboring countries. This form of inward retail internationalization has received little attention in the literature. To address this void, the purpose of this paper is to investigate the strategies of retailers in a border zone setting.

Design/methodology/approach

The authors collected data from 109 US retailers on the USA–Mexico border. The survey instrument included questions that captured the participants’ opinions regarding the importance of Mexican consumers, retail mix strategies, performance issues and overall retailer characteristics.

Findings

The findings show that US retailers perceive cross-border consumers as important to their performance. Interestingly, the findings also suggest that border zone retailers do not adapt their retail mix strategies with this target market in mind.

Research limitations/implications

The research was conducted at one particular border zone with its own unique characteristics. It is not clear whether the authors’ findings would apply in other inward internationalization contexts (e.g. medical tourism) or border zones. Future research should delve much more deeply into understanding outshopping motivations in border zones, but also the reasons why retailers do not actively engage in marketing their establishments to this target market.

Practical implications

The authors’ findings have interesting implications for retail managers in border zones. While exogenous and uncontrollable advantages on one side of the border may attract customers away from the other side of the border, retail mix customization under the control of retail managers may actually stimulate similar or better results. Border zone retailers are encouraged to engage in efforts to understand the border zone consumer and engage in programs directly targeted at them.

Originality/value

The study is grounded in theory and empirically assesses the retailers’ own contributions to enhancing their inward internationalization performance. By using the model of secondary boundary effects developed by Clark (1994) as their theoretical prism, the authors have put forward hypotheses, which address the aforementioned issues.

Details

Review of International Business and Strategy, vol. 27 no. 4
Type: Research Article
ISSN: 2059-6014

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Article

John Hadjimarcou and John W. Barnes

The study examines the process of international market expansion by a relatively new and small franchisor. Particular emphasis is placed on the company‘s efforts to…

Abstract

The study examines the process of international market expansion by a relatively new and small franchisor. Particular emphasis is placed on the company‘s efforts to identify a suitable partner in the host country, the adaptation of the concept to address differences in the new market, and the multitude of critical decisions that need to be made when franchising in international markets. The authors also discuss the role that strategic alliances play in the success of international franchising efforts. The paper concludes with the implications of this case for both researchers and practitioners.

Details

Journal of Consumer Marketing, vol. 15 no. 6
Type: Research Article
ISSN: 0736-3761

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Article

Simona D'Antone and Dwight Merunka

The purpose of this paper is to explore how brand origin (BO) cues affect the consumer’s association of a new brand with BO learning and the subsequent effects on brand…

Abstract

Purpose

The purpose of this paper is to explore how brand origin (BO) cues affect the consumer’s association of a new brand with BO learning and the subsequent effects on brand image (BO semiotics). An integrative theoretical framework is proposed that includes both processes.

Design/methodology/approach

The proposed model is based on analogical learning theory and triadic semiotic theory.

Findings

Two types of BO knowledge form BO meanings in consumer minds: country-related categories and exemplar brands, which have a classification and/or inferential role. The brand cues (indexes or icons) used by consumers to identify BO generate one or the other type of BO knowledge. Indexes trigger the classification function of country-related categories while icons trigger the inferential role of country-related categories and exemplar brands. BO knowledge informs the meaning transfer when consumers interpret the meaning of a new brand, leading to either a transfer of relations or a transfer of attributes to the new brand.

Practical implications

Marketers should monitor BO exemplar brands that consumers use as meaning sources and carefully select the signs used in their communications to evoke BO.

Originality/value

The proposed framework contrasts with dominant categorisation perspectives, re-establishing the dual role of categories and emphasising the relevance of brand cues in BO identification and BO exemplar brands in the BO meaning transfer process. A meaning-centred perspective is adopted to integrate BO identification and the related transfer mechanisms.

Details

International Marketing Review, vol. 32 no. 6
Type: Research Article
ISSN: 0265-1335

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Article

Fernando R. Jimenez, John Hadjimarcou, Maria E. Barua and Donald A. Michie

Previous research on global marketing has typically focussed on marketing strategies across national markets. Yet, the cross‐national mobility of individuals has increased…

Abstract

Purpose

Previous research on global marketing has typically focussed on marketing strategies across national markets. Yet, the cross‐national mobility of individuals has increased heterogeneity within country markets. The purpose of this study is to examine how immigrant consumers perceive advertising appeals in the context of the consumer acculturation process. Specifically, our study focusses on the reactions of Mexican, American, and Mexican‐American consumers to puffery‐laden advertisements.

Design/methodology/approach

Using two‐factor theory as our theoretical prism, the study offers salient hypotheses regarding consumer perceptions of puffery‐laden advertising appeals, which are then tested in a cross‐national experiment in the USA and Mexico.

Findings

The results show that Mexican consumers are more susceptible to puffery‐laden claims than Americans. In contrast, American consumers are more susceptible to advertising that does not contain puffery‐laden claims than their Mexican counterparts. Interestingly, the findings also reveal that Mexican immigrants are highly susceptible to both, puffery‐laden and no puffery appeals. The mixed results show that recent Mexican immigrants struggle as they transition to the dominant American consumer culture. First and second generations of Mexican‐Americans, however, react to puffery‐laden advertisements just as typical American consumers.

Practical implications

The paper discusses relevant implications not only for the study of puffery and acculturation of immigrant minority groups, but also for companies engaged in global advertising campaigns in countries with diverse immigrant communities.

Originality/value

The paper offers a worthwhile and unique examination of consumer acculturation in an international cross‐cultural setting and puts forward interesting insights regarding the application of international advertising strategies.

Details

International Marketing Review, vol. 30 no. 5
Type: Research Article
ISSN: 0265-1335

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Article

Leonidas C. Leonidou, John Hadjimarcou, Anna Kaleka and Gergana T. Stamenova

Reports the findings of a study conducted among 135 Bulgarian consumers, examining their perceptions of products from five Asian Pacific countries. The most common source…

Abstract

Reports the findings of a study conducted among 135 Bulgarian consumers, examining their perceptions of products from five Asian Pacific countries. The most common source of information for evaluating these products was experiential knowledge, coupled with opinions from friends. Among the country origins investigated, products made in Japan appeared to be liked most, while Indian products received the most negative comments. Japanese products were also ranked first in terms of overall assessment, followed by products from Hong Kong, Singapore, Indonesia, and India. In general, consumer demographics did not play a serious differentiating role in the evaluation of products from these countries. With respect to specific product dimensions, Japanese goods were also rated more highly than those of other countries, the only exception being on price and credit facilities. Finally, in assessing particular categories of products made in Asia Pacific, Japan again received the highest ratings. Some conclusions are drawn from the study findings, as well as managerial implications.

Details

International Marketing Review, vol. 16 no. 2
Type: Research Article
ISSN: 0265-1335

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Book part

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Article

Sadrudin A. Ahmed and Alain d'Astous

This article presents the results of a survey of 250 Canadian male consumers. In this study consumer judgements of products made in both highly and newly industrializing…

Abstract

This article presents the results of a survey of 250 Canadian male consumers. In this study consumer judgements of products made in both highly and newly industrializing countries were obtained in a multi‐attribute and multidimensional context. The results show that younger and less affluent respondents react more favorably towards products made in newly industrializing East Asian countries. The country‐of‐origin image of East Asian countries is less negative for products that generate a medium level of involvement (e.g., a VCR). This negative image of East Asian countries is attenuated by providing other product‐related information to consumers such as brand name and warranty. East Asian countries are perceived more negatively as countries of design than as countries of parts and assembly. In comparison with products made in highly developed countries, products made in East Asia are perceived to be poorer in terms of performance, quality and originality but more economical.

Details

International Journal of Commerce and Management, vol. 11 no. 1
Type: Research Article
ISSN: 1056-9219

Content available
Article

John W. Cadogan

Abstract

Details

International Marketing Review, vol. 30 no. 5
Type: Research Article
ISSN: 0265-1335

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Book part

Jonas Eduardsen

This chapter contributes to the ongoing debate about how digitalisation affects the internationalisation of small- and medium-sized firms (SMEs). By applying the Uppsala…

Abstract

This chapter contributes to the ongoing debate about how digitalisation affects the internationalisation of small- and medium-sized firms (SMEs). By applying the Uppsala Internationalisation Process model, this chapter examines the impact of e-commerce on the internationalisation of SMEs. The study uses a unique dataset, which includes 14,513 SMEs across several sectors in 34 countries. The results show that firms using the Internet as a means to provide information about the firm exhibit a higher degree of internationalisation, while using the Internet to facilitate transactions was found to have a positive impact on the ratio of foreign sales to the total sales; however, these foreign sales are likely to be concentrated in less regions/markets. Furthermore, perceived export barriers were found to be a significant moderator of the effects of e-commerce usage on international intensity and international diversification. This suggests that e-commerce does not automatically facilitate the internationalisation of SMEs.

Details

International Business in the Information and Digital Age
Type: Book
ISBN: 978-1-78756-326-1

Keywords

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