Improvement of Operational Performance of Internationalized Companies through Collaboration in Distribution Networks

Abstract

The purpose of this paper is to provide theoretical insights on the impact of supply chain collaboration on the operational performance of firms and collaborative advantage as an intermediate variable in the context of the supply networks of internationalized firms. The research is based on a case study of a distribution network constituting Russian and international firms. The obtained results indicate that supply chain collaboration improves operational performance of internationalized firms and firms in domestic market. Moreover, the study advocates that collaboration in distribution networks can be considered as driving factor for international firms to enter the emerging markets through supply networks.     

The Impact of Firm Capabilities and Competitive Advantages on Import Intermediary Performance

ABSTRACT

Import intermediary firms, domestic firms that serve U.S. industries by linking domestic wholesalers/retailers and foreign distributors/manufacturers, handled a whopping U.S. $1.85 trillion of commodity good imports in 2006. This study focused on these important firms by assessing the role of capabilities and competitive advantages as key determinants of import intermediary performance. The empirical results showed that market interpretation, sourcing, and service capabilities, overall, positively affected cost, product, and service competitive advantages. These competitive advantages, in turn, positively affected their relationship performance with business partners. Results, however, also indicated some interesting negative associations among sourcing capabilities, service advantages, and relationship performance with foreign partners, raising questions about extant firm performance theory.     

Performance implications of market orientation,marketing resources,and marketing capabilities

Abstract

Drawing on the competitive capability theory, this paper examines how market orientation, marketing resources, and marketing capabilities contribute to firm performance. The empirical results show that being market oriented influences the level of marketing resources firms possess and the capability to deploy such resources. The findings show marketing resources and marketing capabilities are significant drivers of firm performance, and their impact is greater when they are complementary to each other.     

Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance

ABSTRACT

Purpose: This study examines the role of product development capability for transforming marketing intelligence activities into firm performance on industrial markets.

Methodology/Approach: The authors apply structural equation modeling to analyze survey data from 342 industrial manufacturing companies.

Findings: Results reveal that sales integration and holistic macroeconomic view are particularly important features of the marketing intelligence capability on industrial markets to gain additional insights in order to develop products successfully. Results also reveal that product development capability transforms the marketing intelligence activities into firm performance on industrial markets.

Research Implications: This study offers new insights on marketing theory by extending and concretizing the concept of market orientation to a broader concept of the marketing intelligence capability for industrial markets. Further, this research reveals that the product development capability serves as a mediator to business performance.

Practical Implications: This study’s systematic and tangible outline of the dimensions of marketing intelligence and its link to the product development capability helps firms to better understand how to capitalize on market orientation’s potential values.

Originality/Value/Contribution: This research (a) reveals the relevant dimensions of marketing intelligence on industrial markets and (b) shows how the product development capability tranforms marketing intelligence activities into firm performance on industrial markets.     

The Comparative Influence of Government Funding by the U.S. Commerce Department's Advanced Technology Program and Private Funding on the Marketing Strategy of High-Tech Firms

SUMMARY

This paper conducts an exploratory study on whether high-tech venture firms funded by a United States Federal Government program–Department of Commerce Advanced Technology Program (ATP)–pursue different types of marketing strategies and different goal levels than firms without such funding. A sample of ATP and non-ATP-funded firms was used. Nineteen hypotheses relating to commercialization processes, i.e., types of strategy (licensing), types of commercial advantage (new, innovative solutions), and types of commercialization applications (product vs. process) and four hypotheses relating to levels of performance (levels of cost reduction) were tested. Small ATP firms are more likely to pursue best practice marketing policies such as R&D collaboration, and licensing strategies, and to pursue higher cost reduction and performance goals than non-ATP firms.     

The moderating effect of brand orientation on inter-firm market orientation and performance

Abstract

While prior research has shown that market and brand orientation are key contributors to successful business performance, research to date has not fully explored how inter firm collaboration for these two key orientations can enhance business performance. The purpose of the paper is to investigate the relationship between inter-firm market and performance; to test for the moderating role of brand orientation in that relationship. A total of 169 completed pairs of surveys were collected of small and medium enterprises operating internationally in a variety of industries in Switzerland. The results show that inter-firm market and brand orientation are two antecedents of marketing and financial performance. The impact of inter-firm market on marketing and financial performance is significant when the brand orientation is favorable. This study extends previous research by examining the moderating role of brand orientation on inter firm market orientation, which is important, especially for firms wanting to increase their brand reputation by entering into partnerships with other firms. Further research is indicated, to identify the key moderators of the driving force of inter-firm market in relation to business performance and the reason why maintaining a strong brand presence is important in the international marketplace.     

Exploring the need for (extreme) speed: motivations for and outcomes of discontinuous NPD acceleration

ABSTRACT

New product development (NPD) speed is an important concern for firms in today’s fast-paced economy. While existing literature has focused on continuous NPD speed improvements, this paper explores discontinuous NPD acceleration, or dramatic reductions in development time relative to firms’ normal NPD cycles. Across two studies, the authors interview managers to develop a typology of strategic motivations for discontinuous NPD acceleration, followed by a survey of 218 NPD managers to validate the typology and identify important differences across firm types, including those in new product performance, innovation levels, and configurations of organisational characteristics. The results suggest that discontinuous NPD acceleration is most profitable when firms are proactive and have specific configurations of culture, capabilities, and structure. The authors also discuss implications for theory, practice, and future research.     

The war for talent: human capital challenges for professional service firms

Abstract

Professional service firms face particular human capital challenges. This study reflects on the distinctive characteristics of professional service firms through the concepts of knowledge intensity, low capital intensity and professionalized workforce. Based on in-depth interviews with 21 partners of Australian law firms, we provide empirical evidence on the war for talent challenges faced by professional service firms and in particular, law firms. The findings point to talent management challenges including reputation building and maintenance, employee autonomy, knowledge acquisition, revenue and profitability through internationalization, managing knowledge across borders, managing employee mobility, talent acquisition and retention, talent engagement, performance management and developing leadership capability. These challenges are important issues to be considered by professional service firms as they attempt to compete more effectively in global business contexts.     

Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective

Liability of foreignness (LOF) has been one of the building blocks of multinational enterprise theory development, but we have limited knowledge about the liability of foreignness in the context of multinationals operating in developing countries. This study suggests that in a developing country like China, foreignness may still exist, but its negative impact on foreign firms’ performance may have become insignificant. Local Chinese firms were found to enjoy significant location‐based advantages over their foreign counterparts, contributing to liability of foreignness. However, the adverse effects of liability of foreignness on foreign firms appear to be offset by the foreign firms’ superior firm‐specific and multinationality advantages over local Chinese firms. Further, the location‐based advantages that foreign firms have built up over time further serve to strengthen their overall competitive position in China. © 2014 Wiley Periodicals, Inc.     

Location Advantages,Firm Advantages,and Export Success in the Latin American Automotive Parts Industry

Abstract

This paper examines the influence of location advantages and firm-level advantages on the propensity of Latin American firms to export. An empirical test based on Latin American firms in the automobile parts industry suggests that firms in more competitive Latin American country environments are more likely to export than those in less competitive country environments. Also, older and larger firms are more likely to export than are younger and smaller firms, and businesses that are subsidiary companies are more likely to export than are independent companies. Implications for managers and policy makers are presented.     

The Earth Is Flat,Almost: Measuring Marketing Standardization and Profit Performance of Japanese and U.S. Firms

ABSTRACT

Globalization has fostered greater interest in all aspects of standardization theory, including the four Ps (product, price, place [distribution], and promotion) of the marketing mix. The study researches the firm's strategy of marketing standardization as it correlates to the firm's profit. Multinational firms from Japan and the United States operating in a global environment were studied in order to correlate marketing standardization to profit performance. The results indicate there is increasing support for a strategy of standardizing marketing mix components and contributing to a firm's profit performance.     

National institutional systems,foreign ownership and firm performance: The case of understudied countries

We analyse the relationship between institutional systems (configurations of countries with similar institutional characteristics) and firm performance. We use a large sample of firms from understudied countries to explore whether the performance impact of these configurations is the same (“equifinality”), whether this holds across different measures of firm performance (“Tversky effect”), and whether some institutional configurations better support foreign-owned firms. We find that it is possible to rank institutional systems according to their impact on firm performance, but the ranking differs according to the performance measure. Although foreign ownership on average confers performance advantages, the magnitude of the impact depends on the configuration. Our findings contribute to the understanding of the importance of institutional similarities across countries, and to the implications of these similarities for the theory of the MNE.     

Seeking Competitive Advantage in a Deepening Crisis

ABSTRACT

This paper examines how Export Processing Zone firms in Zimbabwe have responded to the economic crisis in Zimbabwe. The study investigated how exporters are responding to dissipating competitive advantages. Data was collected from a sample of 30 firms. It was analysed through factor analysis to extract constructs considered competitive advantages or disadvantages. Results show competitive advantages pursued are centred on three key factors, i.e., production, pricing, and product. Competitive disadvantages are in the area of product quality and pricing. The two competitive disadvantages are developing a contagious effect on the remaining advantages, thus, deepening the firms into the crisis.     

A review and evaluation of market orientation research in an emerging African economy

ABSTRACT

The paper synthesizes the level of strategic market orientation of firms operating in the emerging economy of Ghana over the last two decades. It dwells on market orientation studies in general, and the banking industry and exporting firms in particular. Market orientation has a positive relationship with performance for both foreign and domestic firms across the many studies. Foreign firms in general appear more market oriented due to experience effect and relationship with parent organizations. As competition heats up in the banking industry, organizations need to be more innovative to sustain their performance or to survive. For exporting firms, there is the need for decreased formalization and increased decentralization so as to enhance the levels of market orientation. The paper develops propositions to guide organizations in applying marketing principles in the running of their business activities. Further, the paper provides an update on the literature with suggestions for future research in the theory and practice of strategic market orientation in the context of the study.     

The impact of professionalization and partnerships on nonprofit productivity

ABSTRACT

This research evaluates the influence of professionalization and partnering with firms on nonprofit productivity. Professionalization is measured in terms of the ratio of paid employees to volunteers, and productivity is measured through the ratio of total assets to number of beneficiaries, and the ratio of total revenues to number of paid employees and volunteers. Empirical analysis combines a survey to a representative sample of Spanish nonprofits, with information available from public sources. Results confirm the existence of a ‘U-shaped’ relationship between professionalization and nonprofits’ capability to reach more beneficiaries with lower assets; a positive effect of professionalization on revenue generation capability; and a positive effect of partnerships with businesses on the nonprofit’s asset-per-beneficiary ratio. Discussion sheds light on the on-going debate about the implications of professionalization and partnering with firms for the capacity of nonprofit organizations to attract resources and to extend their reach in a more efficient way.     

Home country uncertainty and the internationalization-performance relationship: Building an uncertainty management capability

We analyze the impact of home country uncertainty on the internationalization-performance relationship of emerging market firms. Building on organizational learning theory and the institutional approach, we argue that internationalization has a positive impact on the performance of emerging market firms, and that this relationship is strengthened for firms based in emerging countries with higher corruption and political risk. The reason is that by being exposed to high levels of home country uncertainty in the form of political risk and corruption, firms develop an uncertainty management capability at home that helps them face the challenges of internationalization better. We also propose that this uncertainty management capability helps emerging market firms perform better outside of their home region. We test our arguments on a sample of 536 firms from Argentina, Brazil, Chile, and Peru.     

基于不同动机的联盟控制方式选择及其对联盟绩效的影响——中国企业联盟的实证分析

Strategic alliance can aid firms to build and sustain their competitive advantages. Firms set up strategic alliance mainly for two purposes: resource acquisition and capability learning. Formal control and social control are two widely adopted control mechanisms to secure the effectiveness of strategic alliance. In this study, we construct a model to analyze the choice of control mechanisms based on alliance motivations and the influence of control mechanisms on alliance performance. Based on a survey of 607 Chinese firms, we find that when resource acquisition is the key motivation behind alliance, formal control should be enhanced. Whereas when capability learning is the main purpose of alliance, social control becomes a better choice. Furthermore, this research also finds that the impact of both formal control and social control on alliance performance are nonlinear. Suggestions are provided on how to effectively use control mechanisms to attain the purposes of strategic alliance and on how to use control mechanisms to enhance alliance performance. __________ Translated and revised from Nankai guanli pinglun 南开맜理评论 (Nankai Business Review), 2007, (5): 4–11     

Customer Orientation in Chinese Industrial Firms and Global Marketing Implications

Abstract

The study focuses on the moderating role of environmental context (demand unpredictability and technological turbulence) and technological context (production technology routineness and product complexity) on the relationship of customer orientation with market performance relative to the industry in Chinese state-owned industrial firms. The results show significant moderating effects of technological turbulence and production technology routineness: the greater the technological turbulence and the more routine the production technology, the stronger the customer orientation-market performance relative to the industry relationship. The results also show that market performance relative to the industry is positively affected by customer orientation, but inversely affected by demand unpredictability. The findings have implications for global marketing as well as for theory development.     

Avoiding Over-Reliance on a Single Large Customer: The Impact of Technical Capability,Product Development and Alternative Key Customers

ABSTRACT

This study examines three investments that component suppliers can make to circumvent their large customers' ability to achieve significant power advantages. A large scale survey of component suppliers was conducted approximately 12 to 24 months after Original Equipment Manufacturers (OEMs) began flexing their increased purchasing power to demand price reductions and costly design services. The results show that suppliers' technical capability, suppliers' efforts to develop segment-focused products, and supplier investments to build relationships with alternative key customers lessened their large customers'power advantage. The urgency of balancing relationships with large OEMs is illustrated with the finding that customers'power advantage has a strong negative influence on the suppliers'forecast ofc their own performance. In contrast, no relationship between forecasted performance and the level of interdependence between large OEMs and their suppliers was found. The rapid increase of customer power across a broad range of industries has placed many companies in situations similar to the component suppliers investigated in this study. Thus, the outcomes of these suppliers'investments should be of interest to a large audience of managers. The theory used to frame and examine this important managerial situation provides a vantage point that complements the work done by other researchers.     

Polyethnic market orientation and performance: A fast-moving consumer goods perspective

Abstract

The paper explores the market-oriented behaviour and performance consequences for firms operating in a market characterised by national heterogeneity. Through a case-study design, a posteriori propositions based on interview data from six multinational firms operating in a polyethnic market are developed. Findings indicate a positive relationship between the need for responsiveness and a market's polyethnicity with firms customising elements of their product strategy to ethnic segments or European consumers at large. Moreover, findings indicate that market-oriented firms that customise their product strategies to the cultural idiosyncrasies of the Greek market enjoy the highest market share among foreign consumers. As a result, the paper opens up a discussion on the performance implications of adopting a market-oriented approach in polyethnic markets, which are, increasingly, a feature of our globalised world.