The Impact of Export Promotion Programs on Firms’ Export Competencies and Performance in a Transition Economy: The Case of Russian Manufacturers

Abstract

This study evaluates the effects of export promotion programs (EPPs) in Russian manufacturers. It examines a multi-dimensional set of subjective and objective indicators including the level of awareness, use, the perception of usefulness, as well as different intermediate export marketing results, and final performance indicators. The results show that most EPPs are successful in attaining their goals as to improving firms’ export marketing competencies. Though, at the same time, they point to clear problems, regarding program awareness, availability, and accessibility. The paper concludes with a discussion about managerial and public policy implications.     

Analyzing the Impact of Promotions on Manufacturer and Retailer Performance

Abstract

Promotional strategies used by manufacturers (or retailers) influence not only their own outcomes, but also the outcomes of retailers (or manufacturers). As cooperation of both the parties is needed for successful implementation of promotional strategies, the promotions used by either party should provide outcomes that are positive for the other party. The authors propose a framework for examining (1) the effect of promotional strategies on both manufacturer and retailer profitability and (2) which of two promotional strategies (retail price cut or coupon promotion) yields greater total profitability to achieve an exogenously given sales level. The proposed framework also helps in identifying conditions when conflict is likely to occur between manufacturer and retailer, and suggests a cooperative strategy to resolve the conflict.     

Go big or stay home? Korean machinery firms,trade fair dynamics and export performance

With heightened global competition, many manufacturers export as a process by which to increase sales and expand into new markets. South Korean manufacturers export in order to expand outside of a small domestic market, but confront the constraints of many exporters (especially smaller firms), including access to market intelligence and geographically distant prospective customers. This article examines efforts by machine tool manufacturers to minimize the friction of distance involved with exporting through the use of international trade fairs. Analytical emphases are placed on the influence of individual export destinations and on the role of firm size vis-à-vis firm export intensities and overall export strategies and motivations.     

A Typology of Marketing Strategies for Export

Abstract

This study has two goals. The first goal is to develop and present a framework for analyzing and characterizing export marketing strategies. The second goal is to examine the proposed framework. The framework is based on three key dimensions: innovation, adaptation and involvement. In the first part of the paper a typological approach of strategic groups is applied to export marketing. In the second part an exploratory research is reported. One hundred one export ventures were clustered according to the three dimensions. We then test the validity of these dimensions by examining whether they generate prototypes that are significantly different in the adaptation, innovation and involvement. We identify and characterize four strategic prototypes based on the proposed framework. The correlation between the different prototypes and marketing variables is examined and compared with a set of hypotheses. We also explored the relations between the firm's goals, competencies and industry to the strategic prototypes, and the performance achievements of each prototype. We conclude by discussing the theoretical and managerial implication of the framework and the strategic prototypes.     

Influences of Managerial Drivers on Export Sales Units’ Performance of Small and Medium-Size Enterprises

ABSTRACT

This report offers a contribution to the theories related to firms' export performance. Job satisfaction and behavioral and outcome performance of export managers have received attention in export literature. However, the relationships between export managers’ rewards system and the level of export managers’ morale with export managers’ job satisfaction, behavioral and outcome performance, and export sales units’ performance of small and medium-size enterprises have not thoroughly been examined, tested, or validated. A new model is developed based on export managerial psychology theory, which integrates two constructs, the export managers’ rewards and level of morale, as critical variables affecting export performance. The research findings suggest that four connected relationships in a PLS model are positive, significant, and substantial. Particularly, managers’ financial and nonfinancial rewards influence managers’ level of morale, which in turn affects managers’ behavioral performance, and managers' behavioral performance influences managers’ outcome performance, which, finally, affects firms’ export performance.     

Simulating Economic Development in Transformation Economies

Abstract

The purpose of the game described in this paper is to help students understand the impact of various strategies of government intervention on the dynamic free-market processes stimulating economic development. The game simulates three developing economies. Within the economies, each of the students represents an independent economic entity, able to contribute labor, consume goods, and acquire wealth. The game is played in periods, with each one representing a cycle of production and consumption. In one economy, students are free to act independently, or to collaborate, to invest or save money, to innovate or produce conventional products. In the other two, their activities are constrained by “government” regulations, simulating contrasting strategies of import substitution and export promotion. In the end, students are evaluated according to the wealth they create. The three simulated economies provide experiential evidence as a basis for discussing the relative merits of unfettered free enterprise, import substitution, and export promotion as contrasting strategies of economic development.     

Small & Medium Gold & Fashion Enterprises (SMEs) in Arezzo,Italy: Competitive Challenges and Strategic Implications

ABSTRACT

This paper provides some empirical evidence on organizational characteristics and strategies of firms in the Italian gold and fashion industries. The analysis is based on a data set of three SME clusters in Arezzo (a city and province in Tuscany, Italy, southeast of Florence) which led us to the identification of two main alternative strategies which can be implemented when facing the new global competition: a firm-centered brand strategy and an outsourcing strategy (a supply alliance with co-branding possibilities with one or more large Italian firms). We analyzed the resources and competencies of firms that adopted different export marketing strategies and further explored the relationship between strategic choices and performance of participating firms (measured in terms of growth, innovation, and export capabilities). The results show that the choice of a strategy is strongly influenced by the ability of SMEs to respond to changes in consumer behavior and competition, and that some variables significantly affect performance. Both strategies can be effective, and in some cases it is suggested to follow the middle of the road competitive approach: combining the two strategies, exporting own brand directly to the end markets and collaborating with a large firm in order to achieve a sustainable and significant competitive advantage.     

The Foodservice Supplier's Sales Environment

ABSTRACT

This study is designed to assist small meat processors seeking to expand their sales volume. The analysis pertains to a procurement survey of 191 restaurants. Fifty-one different variables are analyzed by means of cross-tabulations among different restaurant groups. For example, three restaurant annual sales groupings (under $500,000, $500,000 to $2,000,000, and over $2,000,000) are used to examine which of these fifty-one restaurant variables significantly differ by group. Other cross-tabulations are also presented regarding dinner ticket price levels, management structure, and chain affiliation, respectively. Many significant differences are found to exist in terms of food quality, delivery methods, product types, and more. Small meat processors will be able to develop more effective sales growth strategies through gaining an understanding of such differences. This study should be of value to small food manufacturers interested in direct marketing to restaurants. For example, based on the general findings of this study, small food manufacturers should place greater emphasis on product quality rather than price when selling their products to larger restaurants since supply quality is of greater importance than cost to these restaurants.     

Export Market for Australian Beef Industry

Abstract

The aims of this paper are to examine the constraints and potentials for Australian beef industry on world export markets, and to identify the implications for other beef exporting countries. The survey of beef export constraints suggested that the effect of world beef price and cost of feed grains reduced beef export returns. The relative importance of these variables was tested using a linear regression model. The coefficients of these variables are statistically significant at 10 and 1 per cent levels, and the results suggest that world beef price and cost of feed grains are important determinants of Australian beef exports. The findings of this study also reveal that Australia is highly restricted in its access to world beef markets by the impact of rigid import controls, tariffs and other trade barriers including export subsidies provided by foreign countries for their own exports. Australia needs to give priority to diversification of export markets, particularly in the emerging markets in Africa, Asia, the Americas and the Middle East, where reduced tariff barriers are expected to improve market access. Australia also needs to increase productivity, improve cost efficiency, and undertake market research and promotion in order to be more competitive in the long run and to capture a sizeable market share from its major competitors.     

The Impact of U.S.-Sponsored Foreign Trade Office Activities

ABSTRACT

Foreign trade offices (FTOs) are an important, little-understood element in the export promotion portfolio of U.S. state export promotion organizations. The value of these organizations is in dispute. In recent years California closed its FTOs in response to budgetary pressures, claiming that these organizations exist primarily to enhance the political standing of politicians rather than to act as effective export development tools. During the same period Washington State opened several new FTOs. Clearly the value of these organizations is in dispute. Another consideration in the effectiveness of U.S. exporters is the subnational contour of the American economic system. State business climates vary considerably, thereby influencing exporter success as well as those programs (such as FTOs) intended to improve firm performance. We hypothesize and find that (a) state entrepreneurial climate is positively related to state exports and (b) FTO network entry activities amplify the impact of state entrepreneurial climate on state exports. Implications for firms and policy makers are explored.     

Examining determinants of export performance in small open economies

Maintaining the standard of living in small open economies requires engaging in international exchange. We report the results of a study that was conducted in Austria and refer to certain of the dramatic changes taking place in Europe. The objective is to examine decision-makers’ experiences in managing companies in a small open economy on several factors impacting export performance. Analyzing the effects of multiple determinants on different export performance measures, our findings reveal that in addition to firm size, the most promising predictors of export performance are management’s motives to internationalize and the use of a differentiation strategy. These findings are important because the latter two dimensions are management decision variables. The results of the study are relevant for managers operating in small open economies whose companies must consider both domestic and international developments.     

A profile of UK exporting companies—an empirical study

The export marketing literature in the UK has tended to focus on successful exporting companies, whilst much of the key literature is based on experience of exporters in the USA and Canada. This paper reports on a study of UK manufacturing exporters. It provides a profile of the UK exporter together with evidence on the methods used by manufacturers to find and select an overseas representative. The results also show that most manufacturers are satisfied with their relationships with overseas agents and distributors, although relationships with some agents and distributors were clearly difficult.     

Internationalisation of Firms from Small Open Transition Economies

Abstract

The aim of this study is to determine the joint impact of intra-firm factors and inward foreign relationships on the status and stage of the outward internationalisation process of firms from small open transition economies. These factors and connections include firm's production capacity, experiential knowledge, psychic distance to target markets, inward international involvement (including foreign ownership and supply relations), and spillover effects. According to the empirical evidence, the inward internationalisation of Estonian manufacturers has considerably facilitated their export intensity.     

The Role of the Internet in the Delivery of Export Promotion Services: A Web Site Content Analysis

ABSTRACT

This article examines the role of the Internet in the delivery of export promotion services. Based on a content analysis of the Web sites of 250 export promotion organizations (EPOs) representing over 130 countries, it is concluded that the majority of these organizations have not fully exploited the potentials of this technology in the delivery of support services to national exporters. Use of the Internet is primarily limited to dissemination of basic information with little effort made to utilize the interactive and customization features of the technology. The managerial and policy implications of this failure in terms of increased cost of market entry, lost export revenues, and exporter attrition are discussed.     

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.     

The impact of internal,external, and competitor factors on marketing strategy performance

ABSTRACT

Strategy formulation is commonly understood as the match between a firm’s internal resources and skills and its external environment. Marketing strategy performance is the function of a dynamic, interactive process incorporating internal firm resources, external environmental factors, and competitive actions. The study aims to assess the impact of competitor actions on marketing strategy performance. We develop a model that accommodates the effects of 29 variables (comprising internal marketing strategy variables, external environmental factors and competitors’ marketing mix variables) on business performance. We empirically test the model using simultaneous equation modelling of time-series data on UK car manufacturers collected from publically available resources and annual reports. The results show that external factors, in particular competitors’ marketing mix elements, have a greater influence on a company’s business performance than internal (marketing and non-marketing) strategy variables. Implications for marketing theory and management are discussed.     

Country Effects on CRM Success

Abstract

Customer relationship management (CRM) adoption is growing at a dramatic pace in firms and is significantly impacting customer and business market behaviors. As a result, most firms have started developing and implementing CRM strategies. However, country effects on CRM strategy outcomes in international environments have not been discussed and are the focus of this paper. In this paper, we examine the impacts of marketing infrastructure and marketing institutions on the development of CRM strategies and success in the implementation of such strategies. Our framework has utility in understanding the impacts of country-specific factors in the outcomes of CRM Strategy.     

Brand image,cultural association and marketing: ‘New Zealand’ butter and lamb exports to Britain,c. 1920–1938

Abstract

This article examines the branding and marketing strategies of New Zealand Producers Boards which were established in the early 1920s to coordinate the export of butter and lamb to Britain. The brand ‘New Zealand’ featured prominently in the promotion of lamb exports to Britain, whereas much more emphasis was placed on the ‘Anchor’ brand for butter. Because the ‘Mother Country’ was by far the biggest single export market for New Zealand butter and lamb, the branding and marketing activities of the Boards emphasised the strong cultural affinity that existed between Britain and New Zealand. Drawing on the relevant branding and marketing literature, the Boards’ annual reports, and reports by the Ministry of Agriculture and Fisheries, we show that ‘New Zealand’ and ‘Anchor’ conveyed the fundamental message of a shared British identity.     

Determinants of organizational performance: some implications for top executive leadership in Korean firms

ABSTRACT

Leadership, although commonly assumed to be greatly significant, is not typically studied in terms of structural characteristics accounted for in organizational performance. The effect of top executive leadership is explored here as a key factor that reflects organizational characteristics by offering a new framework and presenting an empirical test of Korean business firms. This research can be possibly made by focusing on the size of the leadership which explicates the difference between structural, resource and contextual variables in organizations. The multivariate regression analysis shows that firm size, leadership, debt and export significantly affect organizational performance, as measured by net income. The mechanism of Korean business firms needs to readjust to the new environment for organizational performance.     

The bargaining power,value capture,and export performance of Vietnamese manufacturers in global value chains

This study examines the payoff of various initiatives taken by Vietnamese manufacturers to increase their bargaining power relative to global buyers and capture a larger share of the value generated in global value chains. The study focuses on functional upgrade initiatives (i.e., product development, after-sales services, distribution, and promotion) and negotiation process initiatives (i.e., market intelligence and improvement of negotiation skills). A structural equation modelling method is used to analyse the data collected in 2017 from 354 Vietnamese manufacturers inserted in global value chains. The study finds that all initiatives, except after-sales services, significantly strengthen the manufacturers' bargaining power, which, in turn, enhances their export performance.