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Article
Publication date: 15 October 2018

Nuryakin and Elia Ardyan

This study aims to examine an empirical evidence of the relationship between relational capital, network competence and market entry capabilities on marketing performance in…

1298

Abstract

Purpose

This study aims to examine an empirical evidence of the relationship between relational capital, network competence and market entry capabilities on marketing performance in small- and medium-sized enterprises’ (SMEs’) furniture export orientation in Central Java, Indonesia.

Design/methodology/approach

This study uses a quantitative research approach to investigate the relationship between relational capital, network competence, market entry capabilities and marketing performance. To achieve the research objectives, data were collected from managers or owners of furniture export orientation in Central Java, Indonesia. Using structural equation modeling, and after a series of exploratory and confirmatory factor analyzed, the authors tested an integrated model of the relationship between relational capital, network competence, market entry capabilities and marketing performance.

Findings

The result of this study indicates that relational capital has a positive significant effect on marketing performance. Relational capital has an insignificant effect on market entry capabilities. Network competence has a positive effect on market entry capabilities. Market entry capabilities have a positive effect on marketing performance. Other results also show that market entry capabilities can mediate the influence of network competence and marketing performance.

Research limitations/implications

The limitation of this research indicates that respondents in this research are very varied, if it is seen from their background into furniture business development, whereas many respondents do not have enough understanding of the questionnaire distributed. This research is only developed at the SMEs’ furniture area, so it cannot be generalized at the other organizational area. The influencing of relational capital result in market entry capability has not suitable with theory built. It is because inaccurate dimension market entry capability has been applied in this research. For future research, it is suggested to look for alternative dimension of market entry capability.

Practical implications

Based on the analysis results and discussion, it can be formulated that managerial implication explains the following steps: first, a company should focus on long-period relationship development. Focus on long-period relationship development will increase customer loyalty and company performance. Moreover, the customer has long-term relationship with organization, although instability condition because of the belief in long-period relationship and strong commitment to each other. The evidence from this study suggests that’s the organization needs to develop the long-term relationship with customer. Second, networking competency is important in market entry capability. Relationship can change anytime; therefore, the company has to have a strong competency of network developing. This competency helps company to enhance strong relationship. The strong network relationship helps company face easier ways in market entry capability.

Originality/value

The results of this research indicate that the role played by relational capital to increase market entry capability is not as good as the role played by network capability on market entry capability. In the international market context, the role of resource-based view is better than that of transaction cost economy in influencing market entry capability. Other results also show that market entry capabilities can mediate the influence of network competence and marketing performance.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 20 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Article
Publication date: 31 October 2008

Andreu Blesa and Maria Ripollés

The paper's objective is to demonstrate that marketing capabilities have positive effects on firms' international performance. These effects may be both direct and indirect…

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Abstract

Purpose

The paper's objective is to demonstrate that marketing capabilities have positive effects on firms' international performance. These effects may be both direct and indirect. Marketing capabilities foster international commitment and influence the choice of international entry mode. Through these, marketing capabilities exercise an indirect influence on international performance.

Design/methodology/approach

First, based on arguments from the dynamic capabilities perspective, the dynamic theory of strategy and the transaction‐cost theory, the effects of marketing capabilities on international performance are discussed. A survey was carried out on Spanish and Belgian international firms to test the model. SEM was used to analyse the relationships established in the hypotheses.

Findings

The results show coincidences between the samples in relation to the positive influences of companies' marketing capabilities on economic international performance, international commitment and international entry modes. Moreover, there is also a positive and significant influence of high direct investment entry modes on international economic performance. However, there are differences in other relationships.

Practical implications

The results inform on the kind of entry modes that can be selected, based on firm marketing capabilities, and which of them provide better international results.

Originality/value

This paper confirms that marketing capabilities are at the core of the company's international decisions. Specifically, it demonstrates that marketing capabilities influence both the international commitment of the company and the selection of the appropriate international mode of entry.

Details

International Marketing Review, vol. 25 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 29 September 2021

Yan Zuo and Di Song

The primary aim of this article is to develop an understanding that resolves and integrates the conflicting findings with regard to the effects of platform-owner entry on the…

Abstract

Purpose

The primary aim of this article is to develop an understanding that resolves and integrates the conflicting findings with regard to the effects of platform-owner entry on the innovation of individual complementors.

Design/methodology/approach

Drawing on the platform ecosystem literature and the profiting from innovation (PFI) framework, this study presents a conceptual model that articulates how developers' marketing capabilities and the size of platform's installed base are two key moderators that explain the conflicting results between platform-owner entry and complementor innovations.

Findings

This article theorizes that platform owners' entry stimulates developers' innovations when the size of platform's installed base is large or when developers' marketing capabilities are strong while the entry can discourage innovations otherwise.

Originality/value

By proposing the conceptual model, this article makes important theoretical contributions to the rising literature on platform governance and complementor innovations. It lays a foundation for future research exploring the implications of platform-owner entry.

Details

Industrial Management & Data Systems, vol. 122 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 8 October 2019

Jin Hooi Chan and David Reiner

The purpose of this paper is to examine pre-entry resources and capabilities (R&Cs) of de alio and de novo entrants in an emerging industry. Then, the authors investigate how…

Abstract

Purpose

The purpose of this paper is to examine pre-entry resources and capabilities (R&Cs) of de alio and de novo entrants in an emerging industry. Then, the authors investigate how entrants modify their firm boundaries, after entering a new industry, to acquire the R&Cs deemed critical to be competitive and survive in the industry.

Design/methodology/approach

The analysis uses the global biofuel industry as a case study. The authors use multiple sets of data, including primary data collected from semi-structured interviews with industry stakeholders and experts across major biofuel-producing countries as well as quantitative data from industry reports.

Findings

Firms typically deploy two successive strategies in order to survive and grow. First, they extend vertical boundaries to capitalize on their own pre-entry R&Cs. Then they move quickly to acquire new R&Cs, which are classified as critical in the value chain of the industry. A new taxonomy of pre-entry R&Cs is proposed to distinguish critical and non-critical forms of R&Cs, and to reflect the ease of acquisition of any requisite R&Cs, which are context specific. These strategic moves lead to the bi-directional vertical integration observed in the biofuel industry.

Research limitations/implications

Managers need to be able to assess the opportunities for entry and subsequent strategies to be competitive by assessing their R&Cs in terms of criticality and ease of acquisition in their entry decision making.

Originality/value

A new taxonomy of R&Cs of the firm is proposed which has theoretical significance and practical implications for new entrants.

Details

Industrial Management & Data Systems, vol. 119 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Book part
Publication date: 31 August 2016

Gwendolyn K. Lee and Srikanth Parachuri

The purpose of this original research is to explore whether firms redeploy the resources that were withdrawn from existing businesses and use them to enter an emerging product…

Abstract

The purpose of this original research is to explore whether firms redeploy the resources that were withdrawn from existing businesses and use them to enter an emerging product market. We studied 244 firms that have exited from at least one business and analyzed whether the firms entered the emerging product market as a new business. The inducements of resource redeployment vary with information cues in media rhetoric about emerging and shifting threats of substitution between the firm’s existing businesses and the new one. Through our hazard rate analysis of entries of firms that exited existing businesses, we examined the hypotheses that resource redeployment through exit and entry may be driven by an interaction of the volume of substitution rhetoric with the resource commitments that the firm had made in the domain of the new business as well as the market relatedness between the firm’s existing businesses and the new one. Our study makes conceptual and methodological contributions to the research on inducements, by theorizing how performance advantages of new over existing businesses vary with product evolution and by characterizing emerging and shifting threats of substitution with content analysis of media rhetoric. Our study suggests that prior work investigating corporate diversification provides an incomplete picture of the contribution of resource relatedness to firm value and firm decision-making.

Details

Resource Redeployment and Corporate Strategy
Type: Book
ISBN: 978-1-78635-508-9

Keywords

Article
Publication date: 21 October 2013

Avimanyu Datta, Richard Reed and Len Jessup

The commercialization of innovation, which is key to entrepreneurial success, is a combination of several entrepreneurial activities. Building on research from fields of…

2137

Abstract

Purpose

The commercialization of innovation, which is key to entrepreneurial success, is a combination of several entrepreneurial activities. Building on research from fields of management, strategy, entrepreneurship, economics, and marketing, the paper summarized the extant literature to develop a framework of commercialization and an agenda for future research. The paper aims to discuss these issues.

Design/methodology/approach

Extensive review of literature, which was comprised of 194 articles across 62 journals in the fields of management, strategy, entrepreneurship, economics, and marketing.

Findings

The literature was categorized into six broad themes of entrepreneurial activities: sources of innovations, types of innovation, market entry (capabilities and feasibility), protection, development, and deployment. Most of the research papers that were reviewed were concentrated on single theme.

Practical implications

Given the identification of six key themes of entrepreneurial activity leading to the commercialization of innovations, research questions were posed as a means to move the research forward by integrating the themes.

Originality/value

This is the first paper in its kind to integrate 194 papers from 62 journals to provide a comprehensive framework of commercialization of innovations.

Details

American Journal of Business, vol. 28 no. 2
Type: Research Article
ISSN: 1935-5181

Keywords

Article
Publication date: 28 December 2020

Nuno Arroteia and Khalid Hafeez

This paper investigates how entrepreneurs in an emerging economy in Latin America bundle resources to develop capabilities related to entering new markets whilst creating value…

Abstract

Purpose

This paper investigates how entrepreneurs in an emerging economy in Latin America bundle resources to develop capabilities related to entering new markets whilst creating value for their firms. In particular, the paper explores how individual resources (experiential knowledge and social networks) impact on entrepreneurs' capabilities to exploit new market opportunities.

Design/methodology/approach

The paper employs a case study approach to investigate five cases of entrepreneurs driving technology-based businesses in Brazil. Effectuation theory is used as a lens to ascertain how resources impact on the decision-making capabilities of the entrepreneurs and firms. The research adopts a longitudinal approach, capturing data from thirty interviewees over a period corresponding to domestic and international market entry of these TechnoLatinas ' businesses.

Findings

This paper builds on previous resource-based view (RBV) studies by supplementing evidence that individual and firm-level resources determine the development of capabilities to exploit new market opportunities for new firms. The presence of experiential knowledge (in particular, business planning, market analysis and experimentation) and social networks (individual resources) drives to a mix of causal and effectual heuristics; however, in the presence of firm-level resources (human and financial capital), new entrepreneurs tend to shift towards a stronger causal orientation.

Research limitations/implications

The case companies are high technology, knowledge-intensive Brazilian start-up firms sharing a similar institutional setting. Further research should include a more diverse range of cases including other sectors and other countries in Latin America adopting quantitative design to confirm and generalise these findings.

Practical implications

For policymakers and practitioners, this research provides guidelines on how entrepreneurs' know-how and social networks can be enhanced by providing access to the international market to speed up the growth of a new firm. For entrepreneurship educators, this research explains how effectual orientation (EO) or causal orientation (CO) influences the entrepreneur to exploit the available resources to maximise the growth of businesses in the international market.

Originality/value

The resource-based literature usually ignores the challenges faced by new resource-constrained firms and the individual-level resources of the entrepreneurs. This research contributes to the RBV, entrepreneurship and internationalisation debate by identifying the interplay between RBV and effectuation theory, particularly by bringing forward the impact of individual resources and capabilities of entrepreneurs to make the decision to enter a new market. Moreover, by using the effectuation theory, the research contributes to a better understanding of how resources are managed to create value and growth in new firms.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 9 February 2010

Rosario Andreu, Enrique Claver and Diego Quer

Diversification is one of the most promising strategies for tourism firms, the entry mode choice being an essential decision. For this reason, this paper seeks to analyze the entry

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Abstract

Purpose

Diversification is one of the most promising strategies for tourism firms, the entry mode choice being an essential decision. For this reason, this paper seeks to analyze the entry mode into new business areas made by Spanish tourism firms in their diversification process. It aims to focus on firm factors drawn on the resource‐based view (RBV) to examine issues such as the link between the new business and the company's original one, its diversifying experience, the reasons for diversifying and the impact of the choice of internal growth, external growth or cooperation agreements. The effects of a fit between the entry mode and the type of diversification on profitability are also considered.

Design/methodology/approach

From a mail survey to Spanish tourism firms 94 entries into new business areas were obtained and a multinomial logit regression applied.

Findings

The results show that both the diversifying experience and the reasons behind the decision to diversify influence the entry mode and support the existence of a link between the above‐mentioned fit and firm profitability.

Originality/value

The paper contributes to providing new empirical evidence about entry mode decisions, with the innovation that it has focused on a group of enterprises, those belonging to the Spanish tourism sector, which had traditionally received less attention within this field of research.

Details

International Journal of Contemporary Hospitality Management, vol. 22 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 June 2004

Anjali Bakhru

The knowledge and skills of individuals are widely considered to represent an important component of a firm's intellectual capital. The value of individuals’ knowledge is also…

1981

Abstract

The knowledge and skills of individuals are widely considered to represent an important component of a firm's intellectual capital. The value of individuals’ knowledge is also recognised from a capability‐based perspective. While routines and capabilities are considered to act as the interface for the knowledge of individuals, an important and related issue is to examine how and to what extent individuals’ knowledge acts as the source of knowledge for the creation of firm‐based routines and capabilities. Four firms across two online sectors, online broking and ISPs, are selected for the empirical case study research. The findings highlight the importance of the role of prior organisational experience in the development of new routines and capabilities. It is shown that variations in the role of prior organisational experience across firms and sectors are better understood in respect of the architectural and component knowledge of which managerial knowledge consists.

Details

Journal of Intellectual Capital, vol. 5 no. 2
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 12 February 2018

Lori Radulovich, Rajshekhar (Raj) G. Javalgi and Robert F. Scherer

The purpose of this paper is to empirically examine the relationships between the drivers of economic growth in emerging markets to include entrepreneurial orientation (EO), human…

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Abstract

Purpose

The purpose of this paper is to empirically examine the relationships between the drivers of economic growth in emerging markets to include entrepreneurial orientation (EO), human capital (HC), relational capital (RC), and international performance (IP).

Design/methodology/approach

Data were collected from 199 small- to medium-sized Indian professional service entrepreneurs that employ less than 500 employees and engage in international business. Given the multidimensional nature of IP, structural equation modeling (SEM) was used to test the measurement and substantive models.

Findings

SEM and mediation tests confirmed significant relationships among the constructs in the model and indicated that HC can be leveraged for international growth using RC to deliver new professional services across borders. EO, the strongest predictor, along with HC and RC, directly influenced IP. The effect of HC is mediated by an EO and RC.

Research limitations/implications

By design, only successful professional service firms in India were studied, which limited generalizability.

Practical implications

Entrepreneurs can enhance the likelihood of international expansion success by utilizing highly skilled HC and developing strong network relationships. Entrepreneurial managers should leverage their professional service resources through judicious investments in personnel and relationship-building skills to develop RC.

Originality/value

This study examined entrepreneurial professional HC and RC as related to international entrepreneurship emerging market research. Data collection in India contributes to empirical research on internationalization from emerging markets.

Details

International Marketing Review, vol. 35 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

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