Export Attitudes of Taiwanese Executives

SUMMARY

Taiwanese-based firms have long been actively involved in exporting and international trade. This article investigates their export attitudes and qualities for effective international conduct. Data from 182 companies in Taiwan provide mixed support for three hypotheses advanced in this study. International experience is found to significantly influence exporting attitude. In addition, two measurements of size (annual sales and number of employees) and international business experience are found to have some influence on export attitudes and on the needed qualities for effective international business conduct.     

A Comprehensive Framework Examining the Issues Involved in the Distribution Channel Integration Decision

Abstract

The extant literature offers two competing perspectives on vertical integration. The transaction cost perspective has focused on the transaction cost aspects of the vertical integration decision. This perspective recommends that firms should integrate when integration is the least cost option. The strategic perspective, however, claims to take a more comprehensive approach to the problem by considering the strategic objective of the firm, its bargaining power over the distributors, competitive pressures, and the life cycle phase of the industry. This paper attempts to incorporate the transaction cost and the strategic perspectives into a unified framework developed toward a more complete explanation of the underlying phenomenon. The framework was tested by examining the distribution channel choices of electronic component manufacturing firms. Structural equation modelling was used to test the hypotheses. The findings indicate that the strategic perspective does a better job of explaining vertical integration than the transaction cost perspective. The strategic objectives of the firm, its bargaining power over the distribution channel, competitive pressure, and certain aspects of the environment, emerged as the key factors affecting the vertical integration decisions.     

A review and evaluation of market orientation research in an emerging African economy

ABSTRACT

The paper synthesizes the level of strategic market orientation of firms operating in the emerging economy of Ghana over the last two decades. It dwells on market orientation studies in general, and the banking industry and exporting firms in particular. Market orientation has a positive relationship with performance for both foreign and domestic firms across the many studies. Foreign firms in general appear more market oriented due to experience effect and relationship with parent organizations. As competition heats up in the banking industry, organizations need to be more innovative to sustain their performance or to survive. For exporting firms, there is the need for decreased formalization and increased decentralization so as to enhance the levels of market orientation. The paper develops propositions to guide organizations in applying marketing principles in the running of their business activities. Further, the paper provides an update on the literature with suggestions for future research in the theory and practice of strategic market orientation in the context of the study.     

The Internet,Strategy and Performance: A Study of Australian Export Market Ventures

ABSTRACT

This study examines the impact of the Internet, firm-specific characteristics, market characteristics, and export marketing strategy on export marketing performance. The unit of analysis was an individual product/market export venture. Data were gathered via a self-administered mail survey of 315 Australian firms involved in exporting. The findings indicate that, when the Internet was used for communication purposes and to provide the firm with a competitive advantage, it had a significant impact on export marketing performance. Firm-specific characteristics and export marketing strategy also had a significant impact on export marketing performance.     

International Catalog Mix Adaptation

Abstract

Striking the right balance of adaptation of the international catalog mix may be the key to profitability. U.S. catalog firms, new to international markets, have less experience in adapting than firms in more globalized industries. The literature on international marketing strategy adaptation reveals that this decision depends on the environment, industry, market, product, and characteristics of the firm. This paper examines the influence of market similarity, type of business and the firm's international experience on international catalog adaptation, and explores the effects of catalog adaptation on a firm's performance. We hypothesize that the greater the market similarity, the less likely it is that firms will adjust their catalog. We also argue than adaptation is greater for consumer catalogs than for business-to-business catalogs. A third hypothesis is that more internationally experienced firms will adapt more and a final hypothesis is that a greater degree of adaptation will increase the international catalog performance. The results did not support the association of international catalog adjustment and market similarity, experience, and type of catalog. Findings are mixed both on catalog adaptations and firm performance. We found that some but not all adaptations in the catalog lead to improved performance. We speculate that U.S. catalog firms are making adaptations to reduce the costs of international marketing operations. This cost reduction strategy may not necessarily lead to profitability, thereby discouraging other firms from entering international markets.     

The Location Choices of Multinational Firms: The Role of Internationalisation Experience and Group Affiliation

This paper investigates whether location choices of multinational firms depend on their past export, import or Foreign Direct Investment (FDI) experience on foreign markets or the experience of other affiliated firms. Regardless of locations' characteristics, we find that exporting in a given country, and to a smaller extent importing from it, significantly increases the probability of investing in that particular country the following year. This preliminary exporting phase appears more important for firsttime investors. Moreover, location choices not only depend on the investor's own international experience, but also on the international experience of other affiliated firms: firms tend to invest in countries where the group already exports or owns a local affiliate. These last findings suggest the existence of coordinated strategies and/or information sharing between affiliated firms.     

The Relative Impact of Market Orientation and Entrepreneurship on Export Performance: Do We Really Know Enough?

ABSTRACT

The impact of international corporate entrepreneurship and market orientation on firm performance is well acknowledged in the literature, but their relative influence on the performance of exporting firms remains inconclusive. This study seeks to help clarify the influence of these organizational resources by introducing a third complementary resource, namely commitment to learning. The results, based on data obtained from a survey of exporters in China, show that commitment to learning mediates the relationship between market orientation and entrepreneurship. It was also found that market orientation could be a double-edged sword for exporters in that it can enhance export satisfaction through entrepreneurship, but it can also have negative impact on profit.     

Early international entrepreneurship in China: Extent and determinants

We use data on 3,948 Chinese firms obtained from the World Bank’s Investment Climate Private Enterprise Survey to investigate early international entrepreneurship (international new ventures) in China. The extent of early international entrepreneurship in China is significant: 62% of the exporting firms start export operations within 3 years. Foreign shareholders within the firm and an entrepreneur with previous exporting experience are noted to significantly increase the probability that a firm internationalizes early. We find marked differences in the behaviour of indigenous and foreign-invested firms, and between direct and indirect exporters. For example, for an indigenous firm the more foreign experience its entrepreneur has, the less likely it is to start exporting early. As far as indirect exporting is concerned, business networks are significant determinants of the extent of such exporting, but delays the internationalization process of indigenous firms. The more firms in China export, the more time their managers need to spend on government regulations, although perhaps counter-intuitively, this was not found to discourage exporting. Overall, the findings suggest that exporting by indigenous Chinese firms is often due to challenging or adverse domestic conditions.     

A Neural Network Classification of Export Success in Japanese Service Firms

Abstract

This study examines the export performance of 350 randomly selected Japanese engineering service firms. Inquiry is made regarding environmental, organizational, managerial, strategic, and functional determinants of these exporting firms. Two primary questions are addressed. Can performance category membership of engineering service exporters be predicted? Second and foremost, which determinants are the most effective in differentiating between the export performance categories? An Artificial Neural Network is selected as the statistical method because of the different perspective it provides for a highly non-linear function having many variables, offering results that consistently prove to numerically approximate such functions much easier than conventional methods, together with the ability to dependably and accurately predict membership classification while providing weighted analyses of input variables. Findings suggest that each group's membership can be consistently and accurately predicted and further identify which determinants dominantly impact category membership as supported by differences in the feature extraction phase of the neural network approach.     

Innovation capacity,international experience and export performance of SMEs in Brazil

Innovation capacity and international experience are factors often related to the internationalisation process of firms, with export activities as the first stage of the process. However, firms from emerging countries seem to show advantages and follow patterns of international expansion that may differ from firms based in developed countries, where the internationalisation models were created. Specifically, exporting firms from emerging countries tend to have limited resources, especially small firms (e.g., for investing in R&D). Despite these facts, the literature on export performance seems biased towards recommending firms to enhance, above all, their innovation capacity in order to achieve better export performance, while little attention is paid to international experience as a factor that is as important as innovation. In this context, the objective of this study is to investigate the impact of innovation capacity and international experience on the export performance of small and medium-sized enterprises (SMEs) located in an emerging country and to identify which factor is more significant. The Resource-Based View and Dynamic Capabilities approach were used as theoretical frameworks. A research model was developed and tested on a significant sample of Brazilian industrial SMEs. The data were analysed through partial least squares structural equation modelling. The results indicate that international experience has a greater impact on export performance than innovation capacity, showing that there is possibility of overemphasising the role of innovation in the export performance of SMEs, at least, in the Brazilian context.     

Consumers' Online Information Search for a New Restaurant for Dining-Out

ABSTRACT

By Nelson (1970)'s categorization, purchasing a service such as dining-out at a new restaurant is ‘experience-oriented’ in its nature, and its quality cannot be easily searched before the actual consumption. However, it has been suggested that the interactive nature of the Internet will improve market efficiency by creating a new channel of communication that allows the provision of information about experience attributes in a readily available format (e.g., other consumers' rating online). The paper empirically investigates this notion by exploring consumers' online information search behavior for a new restaurant for fine dining. The extent of usage of various online information sources and the perceived importance of each source are investigated in the United States and in Taiwan. Results show that information from other consumers is considered more important than information from sellers, but that US consumers favor non-Internet sources of information while Taiwanese consumers favor online sources.     

Experience,age and exporting performance in UK SMEs

We consider the determinants of SME exporting performance using a survey of internationally engaged UK SMEs. We first develop a model incorporating organisational and prior managerial learning effects. Our empirical analysis then allows us to identify separately the positive effects on exporting from the international experience of the firm and the negative effects of firm age. Positive exporting effects also result from grafted knowledge – acquired by the recruitment of management with prior international experience. Innovation also has positive exporting effects with more radical new-to-the-industry innovation most strongly linked to inter-regional exports; new-to-the-firm innovation is more strongly linked to intra-regional trade. Early internationalisation is also linked positively to the number of countries to which firms export and the intensity of their export activity. We find no evidence, however, relating early internationalisation to extra-regional exporting, suggesting that early-exporting SMEs tend be ‘born regional’ rather than ‘born global’.     

Effect of Customers' and Suppliers' Perceptions of the Market Orientation of Manufacturing Firms on Channel Relationships and Financial Performance

ABSTRACT

This study is designed to investigate the effect of customers' and suppliers' perceptions of the market orientation of manufacturing firms on customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship with the manufacturing firm. The findings from a sample of 72 matched sets of suppliers, manufacturing firms and customers in industrial channels in the Netherlands reveal that the perceived market orientation of manufacturing firms engaged in channel partnerships has a positive influence on customers' and suppliers' levels of trust in, cooperative norms in, and satisfaction with the relationship. This study further investigates the effect of the customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship on the financial performance of the manufacturing firm. The results reveal that customers' and suppliers' cooperative norms in the relationship positively influence the manufacturing firm's financial performance. Customer's and supplier's trust in and satisfaction with the relationship have no effect on the manufacturing firm's financial performance.     

The Effect of Flexibility on Export Venture Performance

Abstract

Although both international marketing theorists and practitioners have been expounding the importance of flexibility little or no research has been done to examine the effect of flexibility on export venture performance. Most of the research to date was directed towards examining the effect of flexibility on performance in the domestic context. Moreover, the studies in the literature also gave exclusive attention to the performance-enhancing effect of flexibility and ignored the moderating effects of organisational and environmental contingencies on the flexibility-performance relationship. This paper will present the results of a study that assessed the effect of flexibility on export performance.

The findings support the proposition that flexibility is significantly related to export performance but that environmental dynamism, legal forms of business ownership, international experience, control mechanism, and exporter-distributor cooperation have a moderating effect on the relationships between flexibility and export venture performance. The study also found that firms that were challenged by intense competitive rivalries, spent a lot of time and effort on monitoring foreign marketing activities, and had substantial cooperation with overseas distributors were more flexible in their manufacturing, marketing, financial, and organizational activities.     

User Perceptions of Mobile and Online Channels for Purchasing Financial Products

ABSTRACT

This study investigates users' perceptions of costs and benefits of mobile versus online, PC-based, channels for accessing financial information and completing financial transactions. Results indicate that, in the financial services context, the mobile channel has no perceived advantages over the online channel. The older online channel does have several perceived advantages related to transaction cost, risk, ease of use, meeting financial goals, and information accessibility. The channels are similar on four dimensions, but most of the similarities arise because the online and mobile channels enable purchase of the same financial products. Finally, users are more willing to use the mobile channel for less risky tasks (accessing information) than they are for more risky tasks (buying financial products).     

Export Barriers and Strategic Grouping

Abstract

The purpose of our work is to investigate the export strategy of international business by explicitly comparing exporting firms with non-exporting ones. This task has been undertaken by having recourse to a very large sample with more than 55,000 registered Spanish enterprises from all commercial sectors. Using this sample, we try to demonstrate that exporters and non-exporters belong to different strategic groups, with different profit levels. The existence of three kinds of barriers (managerial, organisational and external) constrains migration of non-exporting enterprises to the exporting group. However, the conclusions herein presented point at some ways of avoiding these barriers.     

Multiproduct firms and antidumping duties: Evidence from India

ABSTRACT

With the growing availability of high-quality higher-dimension data in international trade, many new stylized facts have also emerged. One such stylized fact is that multiproduct firms play a significant role in international trade. In this paper, we investigate the effect of US antidumping duties on the exports of Indian multiproduct firms. In particular, we study whether US antidumping duties lead the Indian exporter to alter their product-scope to third country markets (aka to trade partners other than the US). Using a unique transaction-level data from India, we find that firms affected by US antidumping duties increased the number of products exported to other destinations by about 0.7 products, on average. This translates to a substantial 40% increase in the product-scope of these firms because a typical Indian exporting firm exported an average of 1.8 products to a given destination in our sample. We also find that firms whose products spanned multiple sectors drove most of this increase. However, we do not find any difference in the product-scope response of firms producing differentiated vs. those producing homogenous products. We find our results to be robust across various specification and sample size changes.     

Improvement of Operational Performance of Internationalized Companies through Collaboration in Distribution Networks

Abstract

The purpose of this paper is to provide theoretical insights on the impact of supply chain collaboration on the operational performance of firms and collaborative advantage as an intermediate variable in the context of the supply networks of internationalized firms. The research is based on a case study of a distribution network constituting Russian and international firms. The obtained results indicate that supply chain collaboration improves operational performance of internationalized firms and firms in domestic market. Moreover, the study advocates that collaboration in distribution networks can be considered as driving factor for international firms to enter the emerging markets through supply networks.     

The Exercise and Acceptance of Power in an Industrial Channel Dyad

ABSTRACT

Purpose: Power is an adaptive process in which power exercised by one firm could be less than, equal to, or greater than that accepted by another over the course of different periods. This study incorporates previous research on power asymmetry to examine the process of power exercise and acceptance over three stages: power exploration, power balance and power idleness.

Design/methodology/approach: Semistructured interviews were conducted with 4 powerful suppliers (the source firms) and their distributors (the target firms) in different industries.

Findings: The exercise and acceptance of power are influenced by expected rewards and expected costs in the power exploration stage and are impacted by dependence and trust in the power idleness stage; in the stage of power balance, power exercise and acceptance will not be altered. Under power shortage, the source firm will attempt to use less power and/or to enhance the levels of power accepted by the target; under power surplus, the source firm will transform the surplus into company performance and/or personal interests.

Research limitations/implications: The findings deepen our understanding of how power is exercised and accepted in a channel dyad over time, and of how firms behave in dealing with power shortage and power surplus.

Practical implications: The findings also provide some guidance for practitioners, so that they may apply power more appropriately based on different power stages in marketing channels.

Originality/value: This study extends our knowledge on power evolution over three stages from both a power holder and an acceptor viewpoint.