Exploring the Relationship Between Export Intensity and Exporter Characteristics,Resources, and Capabilities: Evidence From Chile

This study focuses on exporters in Chile in order to compare the characteristics, resources, and capabilities for export success (RACFES) possessed by high, medium, and low intensity exporters. Data for this study were collected throughan Internet survey of Chilean manufacturers that export. Of the 480 companies in the sample, 133 responded to the questionnaire consisting of 69 items, yielding a total response rate of 28%. The analysis of variance procedure was used to analyze linear items and the chi square procedure was used for nonlinear items. The results indicated that export intensity in Chile is very strongly associated with firms that are smaller in size, have had export operations for longer periods of time, are highly involved in foreign markets, and are vertically integrated with their international target markets. These firms have also been very successful in overcoming export barriers. They make greater use of promotional strategies to expand their export markets and use sales agents as a means for reducing distribution costs. These firms are more likely to have vertically integrated their Chilean operation with their international target markets and to have created working international networks. The major limitation of this research is that it was carried out in only one South American country, with a rather limited sample size. A practical implication of this study is that companies in small countries, endowed with comparative advantages based on natural resources, can successfully penetrate export markets by imitating Chile's thriving export companies. Export penetration factors for small, resource-based countries like Chile are not very different from those for large developed countries.     

Change in international market strategy as a reaction to performance decline

While a great deal of research has explored how international marketing strategy influences performance, researchers have paid scant attention to understanding changes to international marketing strategy resulting from firm reaction to past performance. In this study, organizational learning theory addresses when and how international marketing strategy will change. Employing data from over 500 exporters, the results, which are consistent with theoretical predictions, indicate that (1) firms are generally not prone to inertia and do, in fact, change their international marketing strategy when facing declines in performance, and (2) that the direction of change depends on the level of competition in the specific foreign market, with firms adapting their international marketing strategy in low competitive markets and standardizing their international marketing strategy in highly competitive markets. The paper includes implications for academics and practitioners.     

Differences among exporting firms based on their degree of internationalization

An overwhelming majority of the investigations of company export behavior have utilized data obtained from all types of firms in a sample. An alternative approach would involve disaggregating the sample into some meaningful groups and contrasting company characteristics across the subsamples of firms. This study attempts to delineate differences among exporting firms when firms are classified by their degree of internationalization. Three types of exporters are identified in light of the internationalization hypothesis: experimental exporters, active exporters, and committed exporters. These firms are then contrasted with each other with respect to measurable company characteristics, domestic market environment, nature of international business involvement, marketing policy aspects, and export market research practices. The analysis in the paper is based upon data gathered through personal interviews with the executives of 70 midwestern manufacturers. The study reveals significant differences among the three types of exporters and provides further insights into the export marketing behavior of firms.     

A Review of “Global Marketing Management: Changes,New Challenges and Strategies”

The paper reports the results of a study of 110 Export Management Companies (EMCs) located throughout the United States. These EMCs were surveyed to find out what international marketing tasks were most important for successful exporting and how difficult these tasks were to perform for their clients. This study also investigated the perceived importance to the ECMs' exporting success of various groups who often provide exporting assistance to exporters. In addition, these respondents were asked to respond to the helpfulness to their exporting activities of current and potential U.S. government actions. The two areas which were indicated to be most important to successful exporting were gathering marketing information and communicating with markets. However, the two areas which these EMCs feel to be most difficult to accomplish were analyzing political risk and sales force management. A gap analysis of these results suggests that the need which exporters most need help in is pricing in foreign markets. This research provides the basis for several policy recommendations to U.S. government leaders concerning their efforts to assist American exporters.     

Taking a global view on brand post popularity: Six social media brand post practices for global markets

Brand post popularity positively relates to consumers’ purchase intentions, actual sales, and stock prices. Research suggests that social media posts should be vivid, practical, interesting, personalized, and interactive. However, cross-cultural research also suggests that practices might not be equally effective across different regional markets. While vividness and practicality could be consistently important across cultures, characteristics of interest, personalization, and interactivity might need to be adapted to the cultural conditions of specific target markets. We consider how individualism/collectivism, long-term orientation, uncertainty avoidance, power distance, and high-context/low-context cultures could influence brand post effectiveness. We provide suggestions for how to manage social media brand post popularity from a cross-cultural perspective to inform both domestic and global social media marketing campaigns. Suggested practices include: (1) making brand posts engaging; (2) targeting the ‘I’ in individualistic cultures and the ‘we’ in collectivist cultures; (3) focusing on consumers’ identity in less long-term oriented cultures and on functional information in more long-term oriented cultures; (4) ensuring that posts help reduce uncertainty; (5) planning for one-way communication in higher power distance countries and two-way communication in lower power distance countries; and (6) making messages less direct in higher-context cultures and more direct in lower-context cultures.     

Internationalization through business model innovation: In search of relevant design dimensions and elements

Internationalization through business model innovation involves the creation, or reinvention, of the business itself. This paper aims to integrate basic insight from the literature on business model innovation, internationalization of the firm, international entrepreneurship, and global marketing into a conceptual model. Our model illustrates that internationalization through business model innovation includes design dimensions, which are domestic or globalized in upstream production as well as in downstream markets. The outcome of this paper is four international business model types each with a specific resource allocation for dealing with differences across geographical locations and entry mode elements. We address the interrelation of these dimensions and elements in firms’ international activities.     

The Impact of the Global Financial Crisis on Country Attractiveness

This study assesses the impacts of the recent global financial crisis on the relative attractiveness of 125 countries between 2007 2011. Using a strategic model of international expansion that quantifies incorporates countries’ market potential (population size, gross domestic product [GDP] growth, per capita GDP), market risks (economic, political, legal, regulatory), distance (cultural, geographic), it confirms that some countries have become significantly less attractive (Ireland, Greece, Japan, etc.), while others have become much more attractive (Taiwan, Korea, etc.) as expansion markets for international companies. This study underscores the need for a strategic approach to international expansion decisions. The model can be used by business executives as a risk management tool in international expansion decision making. © 2014 Wiley Periodicals, Inc.     

International new ventures as “small multinationals”: The importance of marketing capabilities

This paper explores how marketing capabilities contribute to the international expansion of international new ventures, and influence their choice of entry mode. The study examines how marketing capabilities help international new ventures to use entry modes involving higher resource commitment in international markets. The proposed model was tested on country-level data from Spain. The results show that marketing capabilities contribute to a firm's decision to choose entry modes involving higher resource commitment in foreign markets. The paper also includes insights on antecedents of international new ventures’ choice of entry modes in foreign markets.     

Food Culture Distance as a Predictor of Foreign Market Selection: The Case of Swedish Food Exporters

The purpose of this article is to examine the impact of dissimilarity in food culture, “food culture distance,” as a predictor of foreign market selection by food exporters. The sample for this study consisted of 96 export ventures by Swedish food companies in 27 international markets. A composite index of the construct food culture distance was calculated and used as a predictor of foreign market attractiveness for food exporters. The findings indicate that food culture distance does positively impact the attractiveness of a foreign market for food exporters, implying that the greater the perceived distance in terms of food culture, the more attractive is the market for food exporters to enter.     

Paths to foreign markets: Does distance to market affect firm internationalisation?

An idea widely shared among international business scholars, economists and geographers is that geographic, cultural and psychic distance to market affects firm internationalisation in a number of ways. However, evidence for this broad proposition remains inconclusive. This study provides a comprehensive assessment of four separate hypotheses pertaining to the location of markets, the sequence of market entry, the rate of international expansion, and the relationship between sequentially-linked markets. In contrast with previous studies, the analysis is based on a large sample of non-repetitive foreign market entries (n=1132) made by diverse exporters in dissimilar locations within a single country (China). Market entry data thus exhibit substantial variation on the constructs of interest. The results reveal virtually no support for three traditional hypotheses linking distance to market with the sequence of markets entered and the rate of foreign expansion. This study challenges the long-held notion that there is a simple link between distance and market entry sequence. However, this study provides arguably the first demonstration of the “near-market effect” in the context of low-risk entry modes such as exporting. Specifically, the results show that consecutive export locations tend to be culturally related suggesting that exporters are able to transfer learning between similar markets.     

Choice of markets for initial export activities: Differences between early and late exporters

The behaviour of early exporters not only challenges the perspective of the sequential process of internationalization, but it also questions general concepts in the field of management, such as the liability of newness and the liability of foreignness. This study analyses how firms initiate their export activities and proposes differences between early exporters and other firms. The results of our empirical investigation demonstrate that early exporters begin exporting to a greater number of countries than late exporters. However, in the case of early exporters, those countries are institutionally closer to the country of origin of the firm. Finally, we analyze the role played by financial resources in the choice of markets for those initial exports.     

How Do Differing Standards Increase Trade Costs? The Case of Pallets

The pallet is a platform used for storing, handling and transporting products. There are hundreds of different pallet sizes around the world. The case of pallets is examined to illustrate the impact of multiplicity of standards on trade costs. We select this case because pallets are used all over the world, pallet standards are not too sophisticated, and data on pallet standards and costs are to some extent available. The paper examines why there are so many different pallet standards, the associated trade costs and the reasons why countries have not harmonised pallet sizes to eliminate such costs. It then presents options for exporters to mitigate the adverse effects of standards multiplicity while complying with destination markets’ standard requirements. The range of options is limited for exporters from less developed countries because of the lack of rental and exchange pallet markets. To mitigate the costs of this multiplicity of standards, the international community's strategy should focus on developing awareness of the cost of multiplicity of standards and actively supporting standardisation.     

International marketing strategies in industrial clusters: Insights from the Southern Hemisphere

This paper examines co-operative marketing strategies among clustered-based firms in the most important wine producing and exporting countries in the ‘new world’. The research examines the development of active inter-firm marketing co-operation undertaken by firms to achieve competitive positioning in international markets. The results of a survey of managers located in Argentina, Australia, Chile and New Zealand are presented. The empirical contribution comes from the unique comparative data from regional clusters in four countries which are seen internationally as innovative producers and marketers, all strongly export-oriented, but at different stages of economic development and positioning in the global marketplace. In addition, this study makes a significant contribution to agglomeration theory by confirming the importance of sharing marketing knowledge to build sustainable competitive advantage in international markets. The theoretical contribution builds understanding of international marketing strategies within the Southern Hemisphere group of emerging countries and offers new insights on international marketing practices for emerging firms from both the developed economies in the Pacific Ocean region and Latin American emerging economies.     

Psychic distance,marketing strategy and performance in export ventures of Brazilian firms

Compared to other issues examined in the exporting literature, less attention has been paid to the performance implications of following a standardisation or adaptation strategy. In addition, despite the interest in the psychic distance construct in the international marketing literature, there has been also little empirical research on the effect of managers' psychic distance on the international marketing strategies of the firm. To address these issues the present study offers an empirical investigation of the relationship among psychic distance, international marketing strategies, and export performance of Brazilian firms. A sample of senior managers of industrial firms in Brazil is used to test the hypotheses. The results reported here indicate that the degree of international marketing strategy adaptation is affected by the manager's psychic distance towards the foreign markets. Product and promotion adaptation were found to have a positive effect on export performance while surprisingly, distribution and price adaptation were found to influence export performance negatively. Contrary to expectations, the results also confirm that psychic distance has a positive effect on the export performance of the firm. Implications of these findings along with the limitations of the study are discussed.     

Antecedents of consumer attitudes toward mobile marketing: A comparative study of youth markets in the United States and China

The purpose of this study is to examine factors influencing consumers' attitudes toward mobile marketing across two major markets—the United States and China. Drawing upon the technology acceptance model (TAM), the theory of reasoned action (TRA), and the perceived characteristics of innovations theory (PCI), we develop and test a conceptual model examining the joint influences of TAM constructs (perceived ease of use and perceived usefulness) and individual characteristics (personal attachment, innovativeness, risk avoidance, and privacy concern) and on consumer attitudes toward mobile marketing practices. Focusing on youth consumers, we empirically test the model using data collected in an established (United States) and an emerging market (China). Findings across these two markets reflect cross‐market similarities and differences related to consumers' attitudes toward mobile marketing. © 2012 Wiley Periodicals, Inc.     

Industry type,culture, mode of entry and perceptions of international marketing ethics problems: A cross-cultural comparison

The authors investigate the differences in ethical perceptions of Australian and Hong Kong international managers. Ethical perceptions are measured with respect to different industry types, cultures and modes of entry into international markets. Mode of entry refers to how firms select to enter foreign markets. Modes of entry include: exporting (indirect or direct), contractual methods (licensing and franchising) and via direct foreign investment (joint ventures and wholly-owned subsidiaries). It was determined that culture and mode of entry have a significant effect on the perception of ethical problems.Robert Armstrong is an Associate Professor of Marketing and Research Associate of the Asia Research Centre at Murdoch University. His prior experience includes: industrial management, marketing research and corporate planning. His research and consulting interests are centred in the areas of international marketing ethics and services marketing.Jill Sweeney is a Senior Tutor at Murdoch University and is currently working on a doctorate. Jill's chief research interests are in the areas of services marketing and marketing ethics.     

Desire,need, and obligation: Examining commitment to luxury brands in emerging markets

The availability of a wide variety of luxury brands has resulted in declining commitment toward a single brand. Enhancing brand commitment has, therefore, become a significant challenge for international businesses and marketing managers. We develop a multi–dimensional brand commitment framework underpinned by marketing, organizational, and social psychology literature streams. The simultaneous examination of brand–commitment dimensions based on consumer desire, need, and obligation in our framework offers a novel perspective that advances research on brand commitment. Our findings demonstrate stability of the framework in important emerging markets for luxury brands, namely China, India, Russia, Turkey, and Thailand. The framework, incorporating affective, continuance, and normative brand commitment dimensions, offers a conceptually robust fit. We demonstrate that each brand commitment dimension is influenced by distinct antecedents, and we show the direct and interactional impact of consumers’ emotional attachment, economic motivations, and normative pressures on purchase intentions. Supported by well-established theories in organizational and social psychology, our study offers new insights on how consumers commit to brands. We provide international brand managers with a blueprint for strengthening brand commitment across countries.     

Once upon a time in a foreign market: The role of cultural distance in the economic performance of multilateral non-equity partnerships

As a consequence of globalization and advancements in technology, international collaborations, which bring together partners from different cultural backgrounds, have become increasingly prominent in the business world. While several studies have examined the impact of cultural distance on the performance of such partnerships, they have tended to focus on bilateral relationships, and the results they have produced are conflicting. By building on the resource-based view and distinguishing the differences between the concepts of cultural distance among partners and the cultural distance of partnerships from target markets, the present study provides insights into the role of cultural distance in the performance of multilateral project-based non-equity collaborations. Drawing on a sample of 1183 movies that were released in the U.S. between the years 2000 and 2020, this study demonstrates that while projects co-produced by culturally distant partners have yielded higher revenues, the cultural distance of partnerships from target markets can have a negative impact on economic performance. Furthermore, the results show that partnerships formed with firms that originated in countries that have greater diversity perform better in the target market, and such partnerships manage cultural distance more efficiently.     

Export performance of small firms from small countries: The case of New Zealand

Drawing on traditional models of multinational expansion and organisational learning, Brouthers et al. (J Int Mark 17:21–38, 2009) prescribe that in some circumstances, small firms exporting from small countries should concentrate their exports into a single overseas market. These particular circumstances pertain to small Greek and Caribbean exporters in mature low-technology industries. This research extends this 2009 study to the same size group of small firms in another small country, New Zealand. Model estimation involved multiple regression methods on survey data from 249 small New Zealand exporters. Contrasting with Brouthers et al.’s advice, this study finds that small New Zealand exporters should not concentrate their exports into one or a few overseas markets. Success for these small firms stemmed from higher rates of R&D expenditure and multi-market exporting through company-owned channels in distant markets. These differences reflect the different environments and sample characteristics between the two studies. The paper contextualises further the evidence base on the strategies that small firm owner-managers should pursue and policy makers should promote.     

Economic integration across Latin America: Evidence from labour markets, 1990–2013

Combining macroeconomic and microeconomic data and three indicators of international market integration, this paper assesses the degree to which Latin American labour markets are integrated. The results suggest that relative to East Asia, Latin American labour markets are somewhat more integrated, but considerable differences across countries persist. In addition, the evidence indicates that the degree of labour market integration across Latin American borders is significantly less than that of labour markets within the United States in two of the three indicators. These differences may suggest opportunities for efficiency gains from further labour market integration.