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Book part
Publication date: 31 January 2015

Reynaldo Dannecker Cunha and Thelma Valeria Rocha

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…

Abstract

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.

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Entrepreneurship in International Marketing
Type: Book
ISBN: 978-1-78441-448-1

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Book part
Publication date: 20 January 2011

Sharon Loane and Jim Bell

As part of their growth strategy, many firms choose to expand internationally. Such expansion is an especially important decision for small- and medium-sized enterprises (SMEs)…

Abstract

As part of their growth strategy, many firms choose to expand internationally. Such expansion is an especially important decision for small- and medium-sized enterprises (SMEs). These SMEs are vital to China's economy and have grown in importance since the reform and opening-up, measured in terms of size, number, financial status, or profitability. In addition, the Chinese electronics sector plays an important role in the economy. This inquiry explores the internationalisation behaviour of 50 Chinese electronics SMEs. The findings are presented and implications drawn for future research, along with those for policy makers and practitioners.

Book part
Publication date: 27 November 2006

Jorma Larimo

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…

Abstract

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.

Details

International Marketing Research
Type: Book
ISBN: 978-0-76231-369-3

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

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Book part
Publication date: 12 September 2001

Antonio Barretto and Angela da Rocha

The internationalization process of Brazilian firms was examined using the case study method of research, in order to determine whether existing theories could explain the…

Abstract

The internationalization process of Brazilian firms was examined using the case study method of research, in order to determine whether existing theories could explain the Brazilian experience. Ten in-depth case studies were conducted. All companies studied were involved in foreign direct investment (FDI) at the time of data collection, and, with the exception of one, had started their internationalization by exporting. Motives to internationalize and to establish subsidiaries abroad were investigated. Typical patterns of motives to invest abroad and common sequences of entry modes were identified. The choice of foreign markets for FDI seemed to be associated with perceived psychic distance as postulated in the literature. The ownership structure, however, did not seem to follow the patterns identified in other studies. The study confirmed the proposition that inspired leaders play a major role in the initial steps of the internationalization process. Following network theory, personal and professional networks were determined to be of paramount importance in this process. Concluding, a framework is proposed for the study of the FDI decision of firms from emerging countries.

Details

Reassesing the Internationalization of the Firm
Type: Book
ISBN: 978-1-84950-110-1

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