The efficacy of marketing skills and market responsiveness in marketing performance of emerging market exporting firms in advanced markets: The moderating role of competitive intensity

Emerging market exporting firms in advanced economies must manage a highly dynamic landscape owing to factors such as changing market needs and fierce competition. Hence, these firms need to develop unique marketing skills for superior performance. Accordingly, this study draws on the resource-based and dynamic capability theory to empirically examine the role of marketing skills in developing a dynamic capability—market responsiveness—for improved marketing performance, and the changes in this relationship under highly competitive intensity. Using a sample (n = 98) of firms originating from an emerging market (Pakistan) mainly exporting to advanced markets (the United Kingdom, the United States or both), the findings show that marketing skills, positively mediated by market responsiveness, influence the marketing performance of such firms in advanced markets. The indirect relationship is positively moderated by a higher level of competitive intensity. This study extends the dynamic capability and export marketing streams of literature, particularly for emerging market exporting firms in advanced markets, and provides useful performance implications to export marketing managers.     

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.     

External environment and the moderating role of export market orientation

This research has two main objectives. The first is to fill the knowledge gap on the role which the external environment plays in the strategic behavior of exporting companies, taking into account the psychological distances between the domestic and foreign markets. The second aim is to clarify the role that market orientation plays in export activity, since the literature review shows conflicting results. The study provides insight into these issues through hypothesis testing of a conceptual model using a sample of 212 Spanish exporting companies. The results lead to two major conclusions: (a) in turbulent environments, exporting firms adapting the marketing mix program to the needs of foreign markets obtain a better export performance in highly competitive and psychologically distant markets; (b) although market orientation has a direct and positive effect on export performance, its main role is to support strategic decision making in exporting companies. In addition, market orientation moderates the relationship between marketing mix adaptation and export performance.     

Quality of Export Memory Content: A Conceptual Framework

Exporting is still one of the most common ways for organisations to reach foreign markets and its success is often key to sustaining and enhancing overall firm performance. In order to maximise the likelihood of developing sustainable competitive advantage in export markets, exporting organisations now need to learn better and faster than their competitors. This paper examines organisational learning in the context of exporting activities, and more specifically focuses on export memory. A framework of export memory is proposed, with key propositions concerning performance outcomes of export memory. Conclusions are made and future research directions are indicated.     

The impact of transport costs on new venture internationalisation

This paper investigates the importance of transport costs in new venture internationalisation, i.e. of firms that start exporting before they are 3 years of age. It does so by merging two large international datasets, on the firm level (covering 49,584 firms) as well as on the country level (covering 154 countries). It is found that transport costs matter significantly for new venture internationalisation, for older firms’ decision to export, as well as the extent of the latter’s subsequent exports. Export costs, the quality of transport infrastructure and domestic logistics costs affect new venture internationalisation even when controlling for a range of standard determinants. New international ventures behave differently from older firms in two important ways: (1) Transport costs affect the probability that they will export but not the extent of their subsequent exports and (2) their probability of exporting is affected negatively by their networking, domestic success and ISO status, whilst in the case of older firms, these factors have a positive impact. Various recommendations for policy and further research are made.     

Strategic Trade Policies Under Monopsony and Uncertainty: The Exporter’s Non-Linear Responses Based on the Organization of Its Industry

Players’ access to information, their market power, and the timing and rationale of their decisions are important but often neglected in the making of strategic trade policies. I examine optimal decisions in a monopsonistic market with asymmetric information to determine an exporting country’s policy strategies. The large importing country first sets a producer subsidy and later imposes an import tariff after learning about the welfare-maximizing exporter’s reactions to the subsidy. I assume that at the time of their decisions, the n exporting firms have incomplete information and rely only on noisy signals from their own domestic market to account for the uncertainty in the international market. I find that import tariff and producer subsidy can be substitute rather than exclusively independent policies. Results also show that the exporting country’s optimal reaction is non-linear and is based on the structure of its export industry; the exporting country’s government facing a large importer subsidizes (or taxes) its export when the number of exporting firms is low (or high) relative to a threshold number of firms. More important, before giving out subsidies, the exporting country’s government requires more collusion of its firms especially when the large importer targets a fixed domestic price.     

Assessments of selected foreign suppliers by Saudi importers: Implications for exporters

Importing intermediaries' evaluations of alternative suppliers play a significant role in export success. This paper reports on a systematic study of Saudi Arabian importers' assessments of suppliers from four leading exporting countries — the U.S.A., Japan, England, and Taiwan. Importing middlemen are extremely important to a foreign company's success in penetrating the lucrative Saudi market. Therefore, a better understanding of how favorably these middlemen view alternative suppliers is essential for any exporter to this market.     

Implications of Firm Controllable Factors on Export Growth

The need to stimulate export activity of U.S. companies has motivated research on export behavior of firms. Based on the strategic export model, this study attempts to investigate firm controllable factors that stimulate export growth. A survey of 640 small and medium sized manufacturing firms engaged in exporting showed that having a high commitment to exporting, having a possitive attitude toward exporting by placing less importance on perceived barriers to exporting (or export growth), having a customized product adaptation policy and willingness to modify the product, and seeking outside export assistance contribute to export success measured by export growth. International market expansion strategy did not seem to be associate with export growth.     

The decision to export: Firm heterogeneity,sunk costs,and spatial concentration

Integrating perspectives of the Uppsala model of internationalization process, international new ventures and trade theories of heterogeneous firms, this paper develops a dynamic discrete-choice model of export decisions by a profit-maximizing firm. Empirical analyses based on a panel data set of Chinese firms show that sunk costs, productivity, firm size, foreign ownership, industry competition and spatial concentration are positively associated with the decision to export, while state ownership has a negative association with the probability of exporting. However, we find that the relationships are not always uniform and depend on firm-specific idiosyncrasies. The results show that foreign-invested firms and large firms (regardless of ownership) rely on productivity performance related advantages for expanding overseas, while domestic firms, especially small- and medium-sized enterprises, build competitive advantage by leveraging agglomeration economies and the associated spillovers. Our results highlight the role of firm heterogeneity, sunk costs and spatial concentration in shaping the export behavior of firms.     

The Role of Systematic International Market Selection on Small Firms' Export Performance

This article hypothesizes that, on average, small and medium-sized enterprises (SMEs) that use a systematic methodology in selecting foreign target markets (what we call systematic market selection) perform better than SMEs using an ad hoc international market selection methodology. Using a sample of Greek exporting firms, we found that systematic international market selection is a significant determinant of export performance, even when controlling for decision-maker and firm-specific characteristics previous studies found to be related to export success. Implications for managers, trade promotion agencies, and future research are discussed.     

Do foreign workers reduce trade barriers? Microeconomic evidence

This paper provides evidence that foreign workers reduce firms’ trade costs and thus increase the probability that firms export. This informs both the literature on trade costs and the microeconomic literature on firms’ export behaviour. We identify the nationality of each worker in a large sample of German establishments and relate this to the exporting behaviour of these establishments. We allow for the possible endogeneity of an establishment's workforce by instrumenting the share of foreign workers with the regional distribution of foreign workers in the wider labour market. We find a significant effect of worker nationality on exporting which is not driven by the industrial, occupational or locational concentration of migrants. The effect is much stronger for senior occupations, who are more likely to have a role in exporting decisions by the establishment. The relationship is also stronger when we consider exports to particular regions and workers from these regions, consistent with a gravity model in which trade flows from country i to j are a function of migrants from j in i.     

Complementary effect of entrepreneurial and market orientations on export new product success under differing levels of competitive intensity and financial capital

The literature implies that entrepreneurial and market orientations are market-based resources that are essential for securing business success, but their performance impacts are unclear. In the specific field of export research, there is limited information on the interactive effect of these two market-based resources on export new product performance. Accordingly, the current study investigates the joint impacts of these two resources on export new product performance under differing levels of competitive intensity and financial capital. Using a survey of 212 British exporters, the study shows that seeking complementarity between entrepreneurial-oriented and market-oriented behaviors is a useful strategy for export new product success, especially when there is a suitably high level of competitive intensity in the export market environment, and when the export unit has greater access to financial capital. Theoretical and managerial implications of the results are discussed.     

Foreign sourcing and exporting

The aim of this paper was analysing the role of sourcing intermediate inputs internationally on export decisions and distinguishing whether intermediates are sourced from firms belonging to the same business group or from independent suppliers. To analyse firms' export decisions, we use a specification that also accounts for sunk costs and accumulated experience in export markets (i.e., export market learning). We consider that importing intermediates might have direct and indirect effects (operating through enhanced productivity) on the export participation decision. The direct effects on exporting are isolated once we control for productivity and the effects of belonging to an international group. We use a manufacturing panel data set drawn from the Spanish Survey on Business Strategies (ESEE) for the period 2006–14. Both productivity and inward or outward FDI increase the probability of exporting. Moreover, our results uncover the existence of sunk costs and export market learning, and also the relevant role played by intermediate imports in firms' export choices. Their effects act both through the (indirect) channel of enhancing firms' productivity and through a direct effect related to product upgrading, more competitive selling prices or learning from the firm's import experience.     

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.     

Do export status and export intensity increase firm performance?

This study examines the effects of export status and export intensity on the performance of firms in Ghana. Our measures of performance include productivity and profitability. Using the Regional Project on Enterprise Development (RPED) dataset covering the period 1991–2002, the results of this study indicate that export status and export intensity have positive effects on productivity, confirming the learning‐by‐exporting hypothesis. Competition on the international market exposes exporting firms to new technologies, and this has the potential of increasing their productivity. Thus, economic policy initiatives should be directed at encouraging firms to enter the export market. Existing exporters should also be motivated to intensify their exporting efforts by exporting more of their output to foreign markets. © 2011 Wiley Periodicals, Inc.     

Australian Exports of Dairy Products

Abstract

Exports of dairy products are becoming increasingly important in terms of export earnings for Australia. The industry is the fourth highest foreign exchange earner compared to all Australia's food exports. However, Australian exports of dairy products account for about 67 per cent of the total Australian production of dairy products, and about 13 per cent of total world exports of dairy products. About 68 per cent of Australian dairy products exports are sold on Asian markets. The purpose of this paper is to examine the challenging issues and opportunities for Australian exports of dairy products on world markets and to identify potential and emerging export markets for Australian dairy products. Australia is highly restricted on its access to world dairy product markets by the impact of export subsidies and other trade barriers of overseas markets. The current economic and political crises in Asia are also not favourable to maintain export sales on some of the Asian markets. The export support scheme in Australia has made exporting attractive relative to domestic sales. But it is anticipated that the termination of the scheme after June 2000, will reduce production and exports by 6 and 20 per cent, respectively in the short run. However, in the long run, resources will be efficiently used without government intervention and Australian dairy products will also be competitive on the domestic market. There is scope for greater market opportunities in the emerging markets in Asia and other parts of the world for Australian dairy products. Australia will also benefit from the agreement on international trade that directs exporting countries to reduce export subsidy and remove nontariff trade barriers on exports of dairy products. Australia should implement appropriate measures to inaease the milk yield per cow, to improve the quality of dairy products and to identify the need for market promotion and research in order to increase the volume of dairy product exports on world markets, especially in Asia and other potential markets such as Middle East, Africa, Europe and the Americas.     

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.     

Financial performance comparison between international joint ventures and wholly foreign-owned enterprises in China

International joint ventures (IJVs) and wholly foreign-owned enterprises (WFOEs) are the two major competing modes of Chinese market entry for foreign investors. However, the financial performance of and relative financial efficacy between the two modes have not been researched. The present study utilizes firmspecific financial data and examines financial ratios and characteristics of IJVs and WFOEs in the current Chinese financial environment. Results of this study reveal that the WFOE is superior to the IJV in terms of asset efficiency, financial risk aversion, and export growth whereas the IJV outperforms the WFOE with respect to local market growth and environment adaptation. © 1995 John Wiley & Sons, Inc.     

The export intensity of venture capital backed companies

In this study we examine how venture capital (VC) firms influence the export behavior of their investee companies. VC firms perform an important governance function for investee companies by providing monitoring and value-added activities. Drawing on agency theory, the resource-based view of the firm and governance life-cycle theory we hypothesize that the relationship between VC governance resources and investee exporting behavior is moderated by investment stage. Employing a sample of 340 VC-backed firms, our results confirm this hypothesis. Monitoring resources are most effective in promoting export behavior for late-stage ventures and value-added resources in promoting export behavior in early-stage ventures.

世界板栗的贸易格局分析

世界板栗的生产和出口都比较集中,中国、韩国、意大利和土耳其既是主要生产国同时也是主要出口国,这四个国家的年出口量占世界的90%以上。板栗贸易具有明显的地域性,不同国家板栗出口价格差异明显。我国是世界板栗的最大出口国,研究世界板栗进出口贸易格局,分析国际市场的需求和竞争特点,有利于保持和发展我国这一传统产品在国际市场上的竞争力。