Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships

The objective of the paper is to test the effect of firm size and business experience on export performance. In fact, despite a growing number of empirical studies, the question of the relationship between these variables is not clearly established. This research aims at contributing to a better understanding of these complex relationships with a special focus on small and medium-sized enterprises (SMEs). The authors develop a general model and test it using a sample of Italian manufacturing firms that spans the 1997–2001 period. Combining a time-series with a cross-sectional analysis, they use an econometric model in order to test the relationships. Their findings provide a strong support for both relationships. The results show that it is not business experience per se which is important but that it is the relative change in experience that truly impacts upon export performance. The model also reveals that industry effects are relevant.     

The empirical link between export dispersion and export performance: A contingency-based approach

Practitioners and scholars point out that firms are increasingly dispersing their capabilities across organizational functions. However, it is not clear whether all forms of dispersion, of any function, result in the same consequences. This study initiates investigation into the link between the cross-functional dispersion of influence on export marketing decisions (export dispersion) and export performance. Drawing on data from a sample of 225 UK exporters, the findings support the argument that active participation of non-export functions in export-marketing decisions affects export success. However, those performance consequences are dependent on internal and external contingencies. Export dispersion is beneficial for export performance when the export customer environment is more turbulent and, simultaneously, the export technological environment is more stable and the firm has lower levels of export information sharing. In all other scenarios examined in this study, greater levels of concentration of export decision-making (i.e. lower levels of export dispersion) appear to be more beneficial for export performance. Our findings imply that the management of the firm’s level of export dispersion is a complex task, whereby the degree of export dispersion pursued needs to match external environmental and internal firm factors.     

The opportunity to improve psychological competences of project managers in international businesses

Many projects are currently conducted in international businesses in which cultural issues play an important role. In‐depth analysis of the risks associated with the unknown of this type of issues offers companies a better understanding of how to focus their marketing tools to be more effective, and provides project managers with strategies to improve customer relationships. Hofstede's Cultural Dimensions and Meyer's Culture Map have demonstrated that every society possesses distinguishing features. These cultural theories serve as foundation for including the category of culture in a proposed Cultural Risk Breakdown Structure. Through a literature review, risks associated with cultural differences are identified in projects executed in Africa, China, and the Middle East. By linking these risks to cultural dimensions, it is possible to identify the psychological competences framework in international businesses. Therefore, the aim of this paper is to create not only a comprehensive record of these risks but also a list of the new skills and competences that project managers must possess to improve client satisfaction and make decisions in a cross‐cultural environment. By considering the association between psychological aspects and cultural issues, this analysis will be of considerable benefit for improving relationships in international contexts.     

The power of international marketing functions: antecedents and consequences

Purpose: This paper addresses intra-organizational power of international marketing (IM) functions. While IM functions play an important role in firms that operate in continuously changing international environments, their power has been under-explored. Importantly, IM managers need to understand their function’s power and its implications for business performance.

Methodology/approach: Drawing on resource-dependency and interaction theories, we contend that IM functions’ power is affected by the power of non-marketing functions and coordination and conflicts with them. Additionally, IM functions’ power should affect international performance. However, contingency factors may change this effect. The empirical study uses data from senior managers of B-to-B international firms. The model is tested using multiple regression analysis and extensive post-hoc tests.

Findings: While IM functions are powerful, their power is enhanced by coordination with other functions and is reduced by the power held by non-marketing functions. Surprisingly, conflicts with other functions increase IM functions’ power. Finally, IM functions’ power enhances international performance but its effect is weakened by intra-IM conflicts and differs across hi- and low-tech firms.

Research implications: This study provides insights about drivers and outcomes of IM functions’ power based on their relationships with non-marketing functions. Performance consequences of IM power are dependent on contingencies. The study extends knowledge on the under-researched phenomena of marketing power in a B-to-B international context.

Practical implications: IM managers should manage sources of relative functional power and unique intra-firm interactions to sustain or promote their power and thus benefit their firms’ international performance. Practitioners recognize mechanisms to control IMs’ power.

Originality/value/contribution: The study is the first to focus on the interactions of IM functions with non-marketing functions in B-to-B firms and thus complements prior research on IM, general marketing, and non-marketing functions.     

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.     

试论国际市场营销环境中的文化因素及其作用

传统观念认为,市场营销特别是国际市场营销是一种经济活动,经济因素是唯一的决定因素。但是,文化因素在国际市场营销中更起着非常重要的作用,使文化的构成要素在国际市场营销活动中有各自的影响和作用。     

Methodological Choices in Relationship Quality (RQ) Research 1987 to 2015: A Systematic Literature Review

Different methodological choices (i.e., data collection method, sample size, sample characteristics, and analytical instrument) in 122 relationship quality (RQ) peer-reviewed articles published in accredited academic journals between 1987 and 2015 are reviewed. The results revealed that RQ researchers need to look into other relationship types in which businesses/organizations engage in order to survive, as existing studies have been limited to interpersonal relationships (i.e., relationships between individuals), business to business relationships (B2B), business to customer relationships (B2C), and customer to business relationships (C2B). Also, the results show that too much attention has been given to the quantitative method of data collection, as only a small number of researchers in this field utilize the qualitative method. Furthermore, the sample choice and size identified in existing studies are somewhat constrained to the method of data collection employed. Researchers should be more transparent in providing detailed information on their methodological choices and the rationale for those choices.     

A review of the empirical research on export channel selection between 1979 and 2015

Export channel selection is an important strategy for exporting firms. Over the last 45 years, there have been a number of studies investigating the antecedents and outcomes of this strategy. However, no single study systematically reviews the findings in this field. In order to address this gap, we review the literature on export channel selection up to 2015 and analyse findings on the determinants and/or consequences of export channel selection. Our review shows that in general export channel selection remains underexplored. We identify a number of issues in the current studies, including lacking knowledge of performance implication of channel selection, missing theoretical bases, weaknesses of research methods. Based on these, this review provides future research directions for development in export channel selection research.     

Sponsorship relationships as strategic alliances: A life cycle model approach

In recent years, academics and practitioners have recognized that sponsorship relationships operate as strategic alliances. Additionally, they have emphasized the lack of analytical approaches which allow an understanding of the developmental process of such alliances. In an attempt to fill this gap, we examine how key sponsorship characteristics change over different stages of the life cycle (formation, operation, and outcome) to determine the success or failure of the relationship. Specifically, we propose a life cycle model that articulates general paths in sponsorship relationship developmental stages and the behavior pattern of sponsorship characteristics. Throughout this framework, we illustrate our reasoning with examples drawn from the UBS/Team Alinghi sponsorship relationship.     

Rituals in managing extrabusiness relationships in international project marketing: a conceptual framework

The current craze for the so-called relationship marketing in business markets must not mask the fact that, beyond economic and technological interdependencies between companies, business relationships are also made up of social interactions. This social dimension often escapes the attention of marketing theorists although it is of major importance in the management of business relationships. On the basis of an investigation into international project activities, this article develops a ritual approach for managing the extrabusiness phase of business relationships. This ritual approach allows us to build a framework designed to encapsulate and, possibly, manage the many faces of the social dimension of business relationships.     

Cross-border relationships and performance: Revisiting a complex linkage

Existing export performance models do not explicitly address the role of the importer in achieving economic success. This research explores importer role performance as a mediator between relationship quality and export performance, and uncovers the darker side of cross-border relationships by showing that relationship quality has concomitant opposite effects on export performance. The findings augment the relational paradigm to export performance by the demonstrating the vital importance of the importer role and by discriminating and explaining the positive and negative influences of interfirm relationship quality. The study uses structural equations modeling with data from two random samples of French and Slovene exporters to test hypotheses.     

Entrepreneurial orientation,export channel selection,and export performance of SMEs

Although research indicates that the export channel a firm uses can significantly impact export performance, it is unclear how firms should select this channel. Models of export channel choice tend to concentrate on transaction cost efficiencies, ignoring value adding orientations that entrepreneurial firms may possess. In this paper we develop and test the theoretical notion that in addition to transaction costs, differences in entrepreneurial orientation (EO) influence export channel choice and as a consequence export performance. Using data from a sample of Dutch and Italian SMEs we find that adding EO (moderated by institutional distance) significantly improves our model of export channel choice. Further we find that firms selecting export channels that align not only with transaction cost factors but also firm level EO, moderated by institutional distance, have higher export market performance. Thus, our study adds to and extends the export channel choice literature and provides interesting new insights into how EO helps firms create more successful export operations.     

Cross-border relationships and performance: Revisiting a complex linkage — A commentary essay

Obadia and Vida (2010) extend a prominent theme in the export performance literature, by explicitly addressing “importer role performance.” The commentary essay here builds on a significant volume of work dealing with behavioral dimensions in cross-border exchange relationship management, and points at contributions and shortcomings of Obadia and Vida's paper in terms of advancing and upgrading discussions in this area. This commentary concludes that scholars need to concentrate their future research efforts in linking the relationship dimension and export performance on introducing more comprehensive sets of mediating and moderating effects. These sets of effects may include dimensions such as opportunism, foreign market knowledge and competence, conflict reduction, commitment enhancement, partner interaction, knowledge sharing and ICT.     

The Relationship Rhombus: A Quadratic Relationship

Affinity marketing is highly focused cause related marketing which bridges the divide between commercial companies and organizations, places, or groups which have supporters and /or members and followers, rather than shareholders and customers. Consumers purchase from an organization, which they currently have no relationship with through the strength of their affinity towards a group to which they are linked. In affinity marketing a ready-made relationship is taken by one party and adapted for 'own use' and this raises the issue of who takes and adapts and for what purpose? This paper introduces the concept of affinity marketing, using the example of the affinity credit card to explain the complications of affinity relationships. Having explained the triadic nature of the affinity credit card relationship it then takes this one step further to discuss the development of a further quadratic, rhomboidal relationship.     

The Effects of Relationship Marketing on Share of Business: A Synthesis and Comparison of Models

ABSTRACT

Purpose: The article synthesizes the extensive empirical work on relationship marketing (RM) and compares the various conceptualizations to give a better understanding of the relational factors (i.e., characteristics of the business relationship) that improve a seller’s objective performance (i.e., share of business) in a business-to-business (B2B) services context. These conceptualizations, taken from the literature, link relational antecedents (i.e., communication, domain expertise, relational value, and mutual goals) to relational mediators (i.e., trust, satisfaction, commitment, relationship quality) to explore how they in turn affect a seller’s share of business.

Methodology/approach: All 4 models derived from the literature review were assessed using a dataset drawn from a survey of 948 client firm representatives of a Portuguese hotel chain in a B2B services context.

Findings: The best of the models in terms of model fit and prediction of share of business shows that only customer commitment directly drives a seller’s share of business, and simultaneous interrelated changes in customer trust and satisfaction, as well as customer perceptions of relational value, drive customer commitment, and so exert indirect effects on performance. The model that proposes that a seller’s performance is strengthened by simultaneous interrelated improvements in customer trust, satisfaction, and commitment (i.e., with these three mediators being conceptualized as a single, combined, higher-order mediator, termed relationship quality [RQ]) shows inferior fit. No combination of mediators (satisfaction, trust, or commitment) improves the seller’s objective performance over and above their individual effects (i.e., there are no synergistic effects).

Research implications: The literature review suggested four ways of modeling RM antecedents, mediators, and their effect on performance. Complex second-order constructs such as RQ lack explanatory power when predicting outcomes and mask the effects of individual relational mediators. Correct conceptualization is important, as conclusions vary drastically even with the same set of relational mediators and same dataset.

Practical implications: B2B service providers’ investments in RM will lead to improved share of business only if customer commitment is high or there is at least the potential to improve it. This requires an understanding of how valuable

the customer believes the relationship to be, and how the customer rates the relationship with the firm in terms of satisfaction and trust. A customer segmentation approach to relationship building and maintenance is advocated and detailed suggestions are put forward.

Originality/value/contribution: Apart from the work by Palmatier, the relationships between RM antecedents and mediators have not yet been examined simultaneously and findings are fragmented. The article provides a synthesis of this expansive literature. It contrasts different interplays between RM mediators, including their interrelationships as a higher-order construct, and explores possible synergy effects. Unlike previous work, this study focused on an objective measure of seller performance (i.e., share of business), whereas previous studies have tended to examine subjective measures, especially within the B2B context. Furthermore, four full models were assessed here, each of which included the antecedents to RM mediators and their links to objective performance.     

A longitudinal meta-analysis of corruption in international business and trade: Bridging the isolated themes

ABSTRACT

This article chronicles the academic debate on corruption in international business and trade. It identifies three themes: contributing factors, consequences, and combating corruption. We found convergence in the literature and that authors tend to remain loyal to their chosen theme. As a result, we found a distressing dearth of research that transcends, integrates, or validates the interrelationships between them. Through our work, we propose the bridging of themes, demonstrating how they interrelate, thereby validating their interdependencies and the broader lens needed through which to observe corruption in international business.     

Breakthrough innovation in international business: The impact of tech-innovation and market-innovation on performance

The literature suggests that the greater the perceived novelty of a firm’s products and markets, the greater the potential value to the user (Lepak et al., 2007). In this study we analyze the extent to which breakthrough innovation (both tech-innovation and market-innovation) has a positive impact on both economic and strategic export performance. Tech-innovation incorporates technological developments to improve customer benefits versus existing alternatives in the market. Our findings reveal that tech-innovation has a positive impact on the economic and strategic export performance of firms. This relationship becomes stronger when more human resources are available and the exporter becomes more oriented toward the importer. In less competitive markets, the positive relationship between tech-innovation and both types of export performance becomes even stronger.Market-innovation occurs when the product concept or benefits depart from serving existing or conventional markets. Market-innovation was found to be negatively associated with strategic export performance, as it requires major learning effort by importers. This suggests that to create value, exporters need to develop solutions jointly with importers. Overall, these findings suggest that value creation in terms of both tech-innovation and market-innovation needs to involve importers to achieve expectations, thereby leading to improvement in a firm’s short-term and long-term export performance.     

Influence of country and company characteristics on international business decisions: A review,conceptual model,and propositions

This research advances four propositions and a conceptual model of country and company characteristics influencing key International Business Decisions (IBDs). The IBDs in this study are country selection and evaluation, entry mode, segmentation-targeting-positioning, and the marketing mix – the first two in the international business domain, and the latter two in the international marketing field. The conceptual model and related four propositions are advanced, based on an extensive literature review and subsequent in-depth review of 169 published research papers on major IBDs and their determinants, namely, country characteristics, including opportunities, risks, and various distances between the host country and home country, and company characteristics, which include international business experience, assets/resources, and expansion/growth strategies. Managerial implications and directions for future research are discussed.     

Using linguistics for creating better international brand names

International product sales are increasingly important for most companies. As a result, cross-border brand naming is becoming a significant marketing issue. This article describes linguistic assets such as phonetics (sounds), etymology (roots of words) and rhetoric (persuasive discourse) and proposes a comprehensive framework for analysing how these linguistic assets transfer (or do not transfer) to a number of target linguistic contexts. Using this analysis, managers should follow the ‘Joyce principle’ and attempt to build meaningful brand names across languages, thus adding value to their global brand names.     

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.