Antecedents to differentiation strategy in the exporting SME

Small- and medium-sized enterprises (SMEs) face various constraints related to size and resource base. Such firms face additional liabilities when they venture into foreign markets. Given such conditions, exporting SMEs should develop and leverage appropriate orientations and strategies, with a view to maximizing firm performance. In this paper, we examine the antecedents to differentiation strategy in the exporting SME. We focus on differentiation strategy because, among the generic strategies, it provides especially important competitive advantages to SMEs. Using survey data from several hundred SMEs, we examine key factors that support the use of differentiation strategy in exporting smaller firms. Findings support our model and hypotheses, and reveal strong roles for Entrepreneurial Orientation, International Growth Orientation, and International Learning Orientation, in the development of Differentiation Strategy. Findings hold implications for SMEs and resource-constrained firms generally.     

Does service intangibility affect entrepreneurial orientation?

Service firms face a unique set of challenges in their internationalization and foreign market growth. Their services' characteristics, particularly intangibility, constrain the options available to them for growth. When such firms are services International New Ventures (INVs), their challenges are combined with those related to rapid internationalization and growth. This research investigates how service intangibility and the typical challenges of INVs relate to the firms' Entrepreneurial Orientation and their foreign market growth. The findings show that indeed service intangibility has a relationship with firm proactiveness, risk-taking, and innovativeness; and that not all elements of Entrepreneurial Orientation have a positive impact on growth.     

Competitor orientation in successful SMEs: an exploration of the impact on innovation

The impact of market orientation on organisational performance has been the subject of many studies illustrating variance with firm size. Although small- to medium-sized enterprises (SMEs) are inherently customer-oriented, research has identified that they have significantly lower levels of competitor orientation than large firms and that competitor orientation is significantly related to organisational performance. In addition, studies have illustrated that SME success is linked to innovative problem solving, new product development and resource optimisation. SMEs are inherently innovative in how they adopt creative approaches to overcome constraints associated with their size. Given that SMEs often neglect to focus on competitors, this study explores the relationship between competitor orientation and organisational performance through an innovation lens. This study uses a qualitative research approach to investigate seven successful SMEs as case studies. The findings indicate that SMEs seeking optimal organisational performance should pay close attention to direct and indirect competitors in order to identify opportunities and build sustainable competitive businesses.     

The Impact of Organizational and Environmental Variables on Strategic Market Orientation

Abstract

This paper offers a new look at market orientation by conceptualizing it from a strategic perspective. It differs from the current literature in that it develops a measure that emphasizes managerial attitudes and strategic intent. The new measure is empirically scrutinized by an investigation of its relationship with pertinent organizational and environmental variables, as well as company performance. Based on a survey of nearly 400 companies operating in the U.S., significant relationships emerged between Strategic Market Orientation and three organizational variables, namely strategic priorities, inter-departmental coordination and ownership nationality. Two of the environmental variables, namely intensity of competition and rate of technological change were also significantly related to Strategic Market Orientation. The relationship between Strategic Market Orientation and company performance remained inconclusive.     

Measuring Market Orientation: Generalization and Synthesis

This paper reports on an integrative, cross-nationalstudy which synthesizes and retests work of three separate groupsof researchers who in the late 1980s developed measurementsof a firm's Market Orientation. The projects resulted in threedifferent but syntactically similar Market Orientation scaleswhich, along with other measures, were used to support substantiveconclusions, particularly those involving firm Performance. Basedon a new study of 82 managers in 27 European and U.S. companies,we show that all three scales are reliable and valid. The scalesalso seem to generalize well internationally, both in terms ofreliability and prediction of Performance. We also show thatthe scales are similar to one another in terms of various validitymeasures and in terms of correlations with Performance measures.Finally, we synthesize a 10-item scale based on a more parsimoniousdefinition of Market Orientation as: the set of cross-functionalprocesses and activities directed at creating and satisfyingcustomers through continuous needs-assessment.     

The dual nature of innovative activity: How entrepreneurial orientation influences innovation generation and adoption

This paper analyzes two modes of innovation that differ in their scope of newness — innovation generation and adoption. Building a theoretical model based on the Entrepreneurial Orientation literature and utilizing a unique sample of innovating firms, we find that 54% adopt innovations of other firms, 7% generate innovations internally whereas 39% combine the two. We also find that proactivity and risk taking influence the number of innovations generated and the extent to which firms favor generation over adoption and that environmental dynamism moderates one of these relationships. These findings add to the innovation and Entrepreneurial Orientation literatures.     

Market orientation in the context of SMEs: A conceptual framework

A number of studies in the marketing literature have examined the construct of market orientation (MO). These studies generally show a positive link between MO and organizational performance. This paper examines MO specifically in the context of small and medium sized enterprises (SMEs). An in-depth review of the extant literature is used to develop a conceptual framework by exploring the major antecedents of MO, the MO–Performance relationship, and the key mediators and environmental moderators of this relationship. This paper also examines several studies on SMEs with respect to various aspects of this framework and offers suggestions for future research in order to understand more thoroughly how MO influences SME performance.     

Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India

Small- and medium-sized enterprises (SMEs) make sizeable contributions to the economic success of nations. Research concerning the internationalization of SMEs is available in the context of developed economies but less is can be found dealing specifically with the entrepreneurial behavior and international expansion of SMEs in emerging markets such as India. This research extends the literature addressing the relationships surrounding the internationalization of SMEs in India as related to entrepreneurial behavior, firm resources, and commitment to internationalization. Entrepreneurial orientation, a commitment to internationalization, and the ability to leverage human capital influence the international success of Indian SMEs, based on the analysis of data collected from 150 Indian SMEs.     

市场导向理论的信息哲学观研究

随着信息时代的到来 ,信息已是现代企业赖以生存和发展的一项极为重要的资源和约束条件。本文首次从信息哲学的高度来研究市场导向理论中信息的重要性和效用性。首先介绍了信息哲学和市场导向理论 ,接着重点从信息哲学的三个方面即信息的本质、信息的存在形式以及信息的效用研究市场导向理论。     

International orientation of Chinese internet SMEs: Direct and indirect effects of foreign and indigenous social networking site use

We examine how international orientation (IO) of small and medium sized enterprises (SMEs) in China is influenced by foreign and indigenous Social Networking Site (SNS) use. Existing international business theory does not explain how SNS use by emerging market SMEs underpins IO. Combining knowledge-based theory, International Entrepreneurship literature and insights from Information Management, we test a model of opposite effects for the use of foreign and indigenous SNS. Analysis of data from 117 Chinese SMEs provides strong support to the central argument that indigenous rather than foreign SNS helps this new breed of firm to become more internationally-oriented.     

Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation

While it is generally agreed that a customer and entrepreneurial orientation enhance company performance in large multi-national organizations, relatively little is known about how these variables influence the small retailers that form a substantial part of national economic well-being. This study investigates the potential influences of these factors on the performance of small retailers in Switzerland, because this nation has long had a reputation for creativity, innovation and a customer focus. Performance is viewed as a two dimensional concept including an effectiveness and an efficiency perspective. Data for this study were collected through personal interviews from 261 SMEs. While customer orientation is found to be positively related to both efficiency and effectiveness, results only show a positive impact from entrepreneurial orientation on effectiveness. At the same time, entrepreneurial orientation is found to be a driver of customer orientation, and thus having an indirect impact also on efficiency for the small retail firms. All in all, the study shows that small retailers do indeed put an emphasis on both customer and entrepreneurial orientation in spite of their limited resources. It also stresses that this will increase their competitive advantage. In the light of existing literature, limitations and future research directions are subsequently addressed.     

Internationalisation of family small and medium sized enterprises: The role of stewardship orientation,family commitment culture and top management team

The purpose of this paper is to determine how aspects of organisational culture, typical to family businesses, influence internationalisation. Proposing that stewardship orientation, family commitment culture and top management team related factors influence internationalisation; we empirically examine 80 internationalising family SMEs (FSMEs) from the manufacturing sector in Finland. Variance based structural equation modelling (PLS) shows that family commitment culture is negatively associated with the degree of internationalisation. On the other hand strategically flexible top management teams with industry experience in FSMEs are positively associated with the degree of internationalisation. Contributing to an understanding of the internationalisation of family businesses, the findings suggest that family commitment culture and stewardship orientation, often associated with an inward orientation, may operate against internationalisation, however when coupled with the strategic flexibility of the top management team, we found stewardship orientation to positively impact internationalisation suggesting that it provides an outward orientation. Implications for practice are advanced.     

Size, strategic, and market orientation affects on innovation

Based on a random sample of 500 South Yorkshire non-hi-tech manufacturing small, medium-sized enterprises (SMEs) the quantitative findings support the hypothesis that size, strategic, and market orientation associate with innovation. The results show that prospectors are medium-sized companies and small companies, defenders. Prospectors are more innovative and market-oriented than defenders. The findings reveal that to succeed in an intense competitive environment, non-hi-tech manufacturing SMEs have to be proactive toward market opportunities, receptive to innovation and take the lead in new product innovation. However, their weaknesses include a lack of flexibility, a partial open culture and an organizational structure that impedes sustained innovation. This study addresses a gap in the literature, by linking innovation to the strategic orientation of the firm instead of examining firms' specific characteristics or the effects of external environment and structural factors. The research focuses on non-hi-tech manufacturing SMEs.     

The Epistemology of Humane Entrepreneurship: Theory and Proposal for Future Research Agenda

This paper proposes a new theory called Humane Entrepreneurship (HumEnt) and identifies areas for future development of knowledge. The new theory integrates in the Entrepreneurial Strategic Posture (ESP) three different concepts: Entrepreneurial Orientation, Sustainable Orientation, and Humane Resource Orientation. From this perspective, HumEnt theory can be considered an extension of previous research but with a new model for consideration. The components of the HumEnt theory and their relationships are outlined in an initial panel of propositions. HumEnt theory can help address the challenges present in creating a more sustainable world. Finally, a research agenda and questions are presented for future consideration.     

Exploring the international student recruitment industry through the Strategic Orientation Performance Model

Abstract

International education is an important, and expanding, global industry. However, much remains unknown about the international student recruitment (ISR) industry, its key variables, and its performance outcomes. This study addresses this lack of understanding by developing and empirically testing a conceptual model that investigates ISR performance indicators. The Strategic Orientation Performance (SOP) Model is proposed as an investigative framework. The model is a conceptual representation of the relationships proposed to exist between market orientation, learning orientation, innovativeness, perceived external market effects, and perceived organisational performance. The study adopted a quantitative methodology using a self-administered questionnaire delivered to ISR practitioners via e-mail. Analysis, via partial least squares (PLS), provided support for the SOP Model in the ISR context. The SOP Model extends previous orientation-performance models. Additionally, within a discordant body of market orientation literature, this study aligns with one of the dominant paradigms and, thereby, provides a strong impetus for further research. Furthermore, future research will benefit significantly through the use of the SOP Model as a solid foundation for further discovery in this important research domain.     

The internationalization of new and small firms: A resource-based view

This paper seeks to enhance understanding of the internationalization of small- and medium-sized enterprises (SMEs). The study focuses upon the following issues: Can the characteristics of principal founders, businesses, and the external environment at one point in time be used to `explain' at a later date whether a firm is still an exporter or a nonexporter, whether exporting firms are larger in size than nonexporting firms, whether exporting firms report superior performance than nonexporting firms, and whether exporting firms are more likely to survive than nonexporting firms? To address these questions, this study draws upon a sample of 621 manufacturing, construction, and services businesses located in twelve contrasting environments in Great Britain surveyed first in 1990/91 and then re-interviewed in 1997.A resource-based view is reviewed to identify the range of factors encouraging some owner-managed SMEs to enter export markets. Four categories of human and financial capital are examined: general human capital resources, the principal founder's management know-how, the principal founder's specific industry know-how, and a principal founder's ability to obtain financial resources that can act as a buffer against random shocks. Variables relating to resource availability in the external environment were also collected and considered control variables. Previous studies have highlighted substantial industry differences in the propensity for businesses to enter export markets as well as to survive. The principal industrial activity of each business in 1990/91 was, therefore, considered a control variable.Variables collected during the 1990/91 survey were selected to explain variations in the propensity to export reported by surviving independent firms in 1997. After elimination of missing values, the working sample was reduced to 116 independent firms for this study (86 nonexporters and 30 exporters in 1997). In addition, the 21 variables were selected to explain variations in business size in 1997, profit performance relative to competitors reported in 1997, changes in employment over the 1990/91 to 1997 period, and business survival over the 1990/91 to 1997 period (213 survivors and 395 nonsurvivors).Multivariate statistical analysis confirmed that previous experience of selling goods or services abroad is a key influence encouraging firms to export. Businesses with older principal founders, with more resources, denser information and contact networks, and considerable management know-how are significantly more likely to be exporters. Further, businesses with principal founders that had considerable industry-specific knowledge are markedly more likely to be exporters. Businesses principally engaged in the service sectors and those located in urban areas are significantly less likely to be exporters.A key finding of this study is that the explanatory variables significantly associated with the propensity to export sales abroad are not the same as those significantly associated with selected size and performance measures. The resource-based explanatory variables selected fail to significantly detect employment-growing firms over the 1990/91 to 1997 period. They also fail to significantly distinguish surviving independent firms from nonsurviving firms.Results from this study will provide policy-makers and practitioners with additional insights into the key resource-based factors associated with the decision by new and small independent firms to export sales abroad. Practitioners and policy-makers can focus upon the characteristics of principal founders, businesses, and the external environment to predict the subsequent propensity of an independent firm to be an exporter. Policy-makers and practitioners who want more new and small firms to export outside their local areas may prefer to target their resources and assistance to the relatively smaller proportion of firms that have the business and principal founder profiles that are significantly associated with a firm being an exporter.     

Entrepreneurial orientation,market orientation,network ties,and performance: Study of entrepreneurial firms in a developing economy

Entrepreneurial orientation (EO), market orientation (MO) and network ties are typically modeled as separate antecedents of performance. However, the boundary conditions for such models are under-explored, as is their applicability to developing economy settings. Accordingly, drawing on institutional and social capital theories, the current paper argues that the performance benefits of EO and MO are complementary, and vary across different levels of social and business network ties. Using primary data gathered from entrepreneurial firms operating in Ghana, the study findings indicate that aligning high levels of EO and MO improves business performance, and particularly so when social and business network ties are well developed, since under these latter conditions, the performance benefits of aligning EO and MO are greatest.     

Sources of opportunities used by growth minded owner managers of small and medium sized enterprises

The purpose of this paper is to investigate the sources and nature of opportunities used by owner-managers of small and medium size (SMEs) firms in order to grow their businesses. In addition to the owner-manager's desire for growth, clearly there needs to be both opportunities to pursue and sufficient management activities that will discover such opportunities, so that a business can grow. These opportunities may originate through some form of environmental change such as advances in technology or by exploiting changes in the marketplace, for example, the exit of a competitor.Research was carried out within twenty SMEs whose owner-manager's aimed to grow their businesses. The focus of the research was on the sources of opportunities they encountered and how and why opportunities were recognized by these firms.The key findings of this research illustrate that the majority of sources for business opportunities for SMEs in this study lie in the market place and are not a direct consequence of environmental change. Traditional marketing analysis tools can, therefore, identify significant sources and scope for growth opportunities for SMEs.     

Strategic hybrid orientation between market orientation and brand orientation: guiding principles

Strategic orientations underpin the firm’s managerial decisions and influence its performance. Firms can combine multiple strategic orientations to achieve superior performance. Market orientation and brand orientation are well-developed, separate, strategic approaches. A 2013 study conceptually proposed a strategic hybrid orientation comprising two types: (a) market and brand orientation and (b) brand and market orientation. The current study is qualitative, using small-to-medium enterprises to investigate strategic hybrid orientations. Through propositions, the paper explains the theory and processes underlying the two hybrid orientation types. The propositions form the guiding principles for the strategic management of the hybrid orientation. The implications for managerial practice show that quite different capabilities apply to the execution of each strategic hybrid type.     

Does market orientation pay off without brand orientation? A study of small business entrepreneurs

Market orientation and brand orientation are usually modelled as distinct antecedents of business performance, and the simultaneous performance effects of these orientations are empirically under-explored. Moreover, studies of market orientation and branding tend to focus on large corporations and the views of managers rather than the views of small business entrepreneurs. Addressing these research gaps, the current study explores market orientation and brand orientation by empirically testing their simultaneous effects on the business performance of small firms. Using primary data from 328 effective responses gathered from small business entrepreneurs, the study finds that market orientation improves the financial performance of a small firm only if it is implemented through brand orientation and eventually translated into brand performance. The results further indicate that older firms benefit more than younger firms from investing in branding, while younger firms benefit from paying attention to the actions of their rivals.